China's National Development and Reform Commission (NDRC) and Caterpillar Inc. announced Thursday the signing of a letter of intent in which Caterpillar and the NRDC will help Caterpillar to develop the remanufacturing industry in China.
The letter of intent was signed by Caterpillar Group President Stu Levenick and NDRC Resources Conservation & Environmental Protection Department Director General Madame Zhao Jia Rong at a ceremony held at the Diaoyutai State Guesthouse in Beijing.
As part of agreement, Caterpillar will provide assistance to the NDRC and Chinese research institutions to support the development of the remanufacturing industry in China.
Caterpillar and NDRC will also form a Joint Working Group on Remanufacturing Programs to work on the remanufacturing cooperation program to promote further cooperation by both parties in sustainable manufacturing and other areas.
Caterpillar Remanufacturing Services is the first wholly owned foreign entity to receive a remanufacturing license in China.
Caterpillar's remanufacturing business is "a highly sophisticated form of recycling that takes end-of-life components and turns them into like-new products for a fraction of the cost," said Levenick.
The remanufacturing technology promotes a sustainable environment by reducing waste and the need for raw materials to make new parts, explained Levenick.
Madame Zhao Jia Rong said, "The letter of intent signing lays a solid foundation to promote cooperation in the area of remanufacturing. It is beneficial for China to learn the expertise of foreign countries and to promote the development of the recycling economy."