China Yuchai International Limited announced that Yuchai Remanufacturing Services Co Ltd the remanufacturing joint venture between its main operating subsidiary, Guangxi Yuchai Machinery Company Limited and Caterpillar Investment Co Ltd received positive remarks at a recent assessment conference from the Guangxi Development and Reform Commission a regional division of the National Development and Reform Commission.

Yuchai Remanufacturing Services which is held 49% to 51% by Caterpillar China and GYMCL respectively, was incorporated in April 2010 in Suzhou, Jiangsu Province in China to provide remanufacturing services for and relating to GYMCL diesel engines and components and certain Caterpillar diesel engines and components.

At the conference, the expert committee highly rated the remanufacturing project and agreed to submit the Self Evaluation and Inspection Report for the Implementation of GYMCL Engine Remanufacturing Center to the NDRC for further review.

Remanufacturing, one of the fastest-growing industries, is a highly sophisticated form of recycling taking end-of-life components and transforming them into like-new products through salvage technology and state-of-the-art remanufacturing practices. The remanufacturing of automotive parts refers to the batch process of dismantling, cleaning, classifying, inspecting, processing or upgrading, re-assembling, testing and re-inspection of used automotive parts. The purpose is to restore the parts' technical and performance features to their original levels. The Auto Parts Remanufacturing Pilot Management Policy issued by the NDRC indicates that the scope of remanufacturing presently covers the engine, gearbox, generator, starter, steering and another five automotive product categories.

Mr Guang Nan Lin director of the Guangxi Development and Reform Commission hosted the meeting and attendees included Mr Haiqing Wang chief economist from the Yulin City Municipal Development and Reform Commission, Mr Weidong Jiang, chief engineer of the Public Information Committee and Mr Qingyan Liang, deputy general manager of GYMCL. The regional expert assessment committee comprised engineers and technical experts from various institutions and entities such as the Guangxi Institute of Mechanical Engineering, Guangxi Mechanical Design Institute, Guangxi University and Liuzhou Locomotive Company.

Mr Benny H Goh President of China Yuchai said "This positive assessment is a strong endorsement of GYMCL's engines and is another step forward in our progress to become the leader in automotive remanufacturing in China. The remanufacturing of automotive parts and engines is still a relatively new industry in China. Once Yuchai Remanufacturing Services achieves full operational status, it is anticipated to become the largest automotive remanufacturing operation in China utilizing the most advanced technological processes in the country."