Why TISEN Choose to do Repowered Construction Machinery Business
2025-03-20 16:24
Tisen Heavy Industry exports remanufactured construction machinery to capitalize on global green economy trends, cost efficiency, and sustainability, offering competitive, localized solutions aligned with evolving market demands.
Against the backdrop of the in-depth adjustment of the global construction machinery industry, Tisen Heavy Industry, with its precise grasp of industry trends, has taken remanufactured construction machinery and equipment as the core direction of its export strategy. This choice not only aligns with the wave of the global green economic transformation but also relies on the large stock of China's construction machinery market and the upgrading of service models to provide cost-effective solutions for the international market.
Structural Changes in the Global Remanufactured Construction Machinery Market
1. The market size breaks through the critical point:
The scale of the global remanufactured construction machinery market continues growing. According to the data of the International Remanufacturing Bureau (IRB) in 2023, the scale of the global remanufacturing market for construction machinery has reached US$42 billion and is expected to exceed US$58 billion in 2025. This is due to the popularization of the "full life cycle management model" and the surging demand for cost-effective equipment in developing countries. European and American giants represented by Caterpillar have been involved in the remanufacturing field since the 1970s. By establishing a complete used parts recycling network and standardized production processes, the remanufacturing business has become an important source of profit for them, contributing 18% of the total revenue and holding a global market share of over 60%.
2. The pattern of differentiated competition in regional markets:
The European and American markets have high certification barriers but strong premium capabilities. The Southeast Asian market is highly sensitive to prices, while the African and Central Asian markets have great potential.
The Core Value of Remanufactured Construction Machinery
1. Cost reconstruction:
Purchasing price of remanufactured equipment is only about 60% of that of new equipment. It has obvious cost advantages throughout the life cycle and reduces the initial cost pressure through innovative financing models.
2. Environmental protection value:
The carbon footprint of remanufactured equipment is significantly reduced, and the resource recycling rate is increased, meeting the requirements of ESG compliance.
3. Performance upgrade:
Strengthening of key components, intelligent transformation, and adaptive improvements enable the performance of remanufactured equipment to be upgraded to at least 90% of that of new equipment.
4. Supply chain resilience:
Remanufactured equipment has a short delivery cycle, guaranteed spare parts, and strong risk resistance.
5. Policy dividends:
Domestic policy support and favorable international rules provide a dual drive for the development of the remanufacturing industry.
Three Main Pain Points of Construction Machinery Users
1. Limited budget, but the price of new equipment is high.
2. When construction machinery and equipment are exported, it is difficult to match and provide timely localized services.
3. The working conditions vary in different regions, and the equipment may encounter the problem of "not being suitable for the local conditions".
Tisen Heavy Industry's Differentiated Export Strategy
1. Positioning different markets with multiple product series
Self-owned excavator brand BENZIA: Independently developed new excavators with strong power and high-efficiency operation.
Rpowered excavators of world’s Top 3 brands: Cooperate with the official agents in China of the three major brands, Caterpillar, Komatsu, and Hitachi. Upgrade the power system (engine and hydraulic pump), and replace the original new four wheels, track chain, and bucket. All repowered equipment are inspected according to new vehicle inspection standards before leaving the factory and issued with remanufacturing certificates of conformity.
Premium eco-recycling machinery of TISEN: Integrate the used machine resources in the Chinese market, remanufacture the power system components such as engines and hydraulic pumps, conduct a full-vehicle inspection, and issue a remanufacturing certificate of conformity after passing the inspection.
2. The implementation of the "equipment + service" business ecosystem
Provide a one-year warranty for all remanufactured products, establish a dealer system, and open up the Tisen Business School to train local technical engineers.
3. In-depth penetration of localized operations
Establish a local dealer and maintenance center system to achieve localized warehousing and services. Rely on the Tisen Business School to train local technical engineers and achieve 100% localization of the service team.
With the acceleration of the global green economic transformation, the remanufacturing industry is expected to become a new engine for Chinese construction machinery enterprises to go global. Tisen Heavy Industry's choice to export remanufactured construction machinery and equipment is a response to the global industrial trend. By integrating domestic and foreign resources and constructing a full-chain service system to provide cost-effective green equipment for the international market, Tiansheng Heavy Industry once again demonstrates the value of "Made in China" in the global construction machinery industry pattern.
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