VW, FAW and government officials opened the carmaker’s first engine reprocessing plant in China (Photo: VW)

VW opened its first engine reprocessing plant in China and pledged to make quality used parts available to its customers in the world's biggest car market.

The German carmaker said it would be able to reprocess 15,000 engines a year at the new facility in Dalian. The parts that will come out of the plant will be 50 pc cheaper than new components.

VW expects that demand for used parts will increase as a result of growing environmental awareness and price sensitivity. That has been the case in Europe already.

Together with its partner FAW, VW has invested 10.9 million euro in the Dalian plant, which can recover 70 pc of the materials used in an engine and saves on raw materials such as steel.

VW has been reprocessing components in Germany for more than 60 years. It said its plant in Kassel, which is the model for Dalian, achieves the same quality as in the production of new components

Dalian is VW's first reprocessing facility outside Germany. The group plans to expand its activities at Dalian to include other engine models as well as transmissions.