FAW-VW's new auto parts factory to bring old engines back to life

Gasgoo.com (Shanghai August 31) - The National Development and Reform Commission has recognized FAW Volkswagen's program to construct a new auto parts factory in Dalian, Liaoning, radiodalian.com reported today. The site will take parts from old engines and use them in constructing new ones. Construction has already begun on the factory, with the site to be finally completed at the end of next year.

According to reports, approximately 70 percent of an engine, including the cylinder set, can be refurbished and used in making new engines. Supposing the new FAW-VW factory has to production target of 10,000 engines a year, using old engines can help cut carbon dioxide emissions by 600 tons, in addition to greatly cutting down costs.

The business of refurbishing old engine parts for new production constitutes a large portion of Dalian's industry supply chain plan. According to Gao Deli, president of the FAW-VW company tasked with operating the new factory, the joint venture hopes to work with the city in helping further develop the region.

FAW-VW has invested about 100 million yuan ($15.69m) in the project, which will later expand to cover refurbishing of gearboxes and other auto parts. The FAW-VW Magotan, Sagitar and Golf, Audi Q5 and A4, as well as the Shanghai VW Tiguan, Skoda Octavia and Skoda Superb will be among the vehicles provided for.