1. ‘The core is the
bloodline’
Also
Common definitions:
What’s in a name?
Remanufacturer of
the Year 2016
The Big Interview:
Jens Uhl, ZF Services
www.ReMaTec.com
REMANUFACTURING INTERNATIONAL
Up close with Bendix
BigR/ReM
aTecUSA
PREVIEW
INSIDE
October 2016
2.
3. EDITORIAL
ReMaTecNews 03Email your comments and stories to editorial@rematecnews.com
‘Welcome to the future:
let us know what you think’
A
s former Remanufacturer of
the Year Jack Stack once wrote:
“Remanufacturing is a tough, loud,
dirty business.” Yet, as he knows as well as
anyone, it is also an industry where complex
software and cutting-edge techniques are
increasingly important.
Exciting developments come in
different shapes and sizes: in this issue of
ReMaTecNews we discuss robots, for example
– but we are just as enthusiastic about the
common definitions for
reman which have
been agreed by six
different trade
organisations.
We applaud
their efforts and
look forward to
seeing the fruits
of that hard work.
Two of those bodies,
APRA and FIRM,
also want you to tell them your priorities so
that they can convince politicians of reman’s
importance. And they are not alone: asking for
help is a theme of this issue of ReMaTecNews.
We too want to take advantage of your
expertise in reman. You may notice a new
look and feel to the magazine, which builds
on the tradition and success of the last 15
years, but also looks ahead to a bright future
for reman. We want to be a big part of it. We
hope you will find a lot to enjoy in this issue -
from a detailed preview of Big R/ReMaTecUSA
to an in-depth chat with ZF Services’ Jens Uhl.
We have also asked readers to tell us what
they see as the major challenges for reman
– and, most importantly, what is required to
overcome them. We will be asking similar
things in every issue – please suggest more
topics that we might cover. Having mentioned
our Remanufacturer of the Year award, you
can find this year’s nominees in this issue of
the magazine. Why isn’t your name there? Get
involved and perhaps it will be in 2017.
For the next edition of ReMaTecNews we
want to find out what you and your company
are doing: please email details of your news,
including people moves and new hires,
product launches and innovations, deals and
joint ventures to editorial@rematecnews.com
(in English please). Above all, we want to learn
how best to help you: we want ReMaTecNews
to connect readers with one another, to
continue help fostering a sense of community
in the reman sector and to provide practical
information and inspiration. I am looking
forward to our dialogue.
Published by
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P.O. Box 77777,
1070 MS Amsterdam
The Netherlands
In association with
Route2Market
Editor
Adam Hill
editorial@rematecnews.com
Phone: +44 (0)7931 502947
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Andrew Barriball
abarriball@ropl.com
Project Manager
Nick Bond
nbond@ropl.com
Phone: +44 (0)1322 612066
Contributors in this issue
Pankaj Arora, Carsten Bücker,
David Fitzsimons, Steve McQueen,
Mike Rayne, Denise Rondini,
Mary Sands,Volker Schittenhelm,
Ramesh Subramoniam
Marketing Communications & PR
Evelien Feijen
e.feijen@rai.nl
Phone: +31 (0)20 54915 81
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Yorien de Ruijter
Phone: +31 (0)20 5493075
Fax: +31 (0)20 5491889
advertising@ReMaTecnews.com
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Reproduction
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Circulation
Approx.13,500 readers per edition.
The magazine is delivered on a controlled
circulation basis to recipients in Western
Europe, Eastern Europe, Africa, North
America, South America and Asia.
Adam Hill
Editor
4. Why
Aqueous?
www.ArmaKleen.com
ArmakleenTM
Aqueous Cleaners:
Improve shop productivity with
the latest cleaning technology
With remanufacturers actively looking for ways
to increase productivity, protect their workers, and
meet environmental regulations that preserve the
planet, ARMAKLEENTM
aqueous cleaners offer the
ideal solution; a versatile, proven product line that
can be customized to fit your specific cleaning
needs and equipment.
A”Greener” Cleaner for Virtually ANY Job.
5. CONTENTS
ReMaTecNews 05Email your comments and stories to editorial@rematecnews.com
26
News
ABN AMRO makes reman
prediction at Automechanika
Frankfurt, while LKQ buys
Andrew Page and Eaton
appoints Drivetrain
Vox Pop
We asked, you answered: what
are the biggest challenges
facing reman and how can the
industry overcome them?
Viewpoint
‘Why can’t reman growth
match recycling?’ David
Fitzsimons offers his personal
thoughts on the way forward
Q&A
APRA chairman Carsten Bücker
reveals his concerns for the
future - and why reman was
part of breakfast in his house
People
The latest company hires,
promotions and expanded
roles: catch up with reman’s
movers and shakers
Common Definitions
As six reman trade
associations agree on what
terms to use for basic industry
concepts, we consider why this
is so important
Partnerships
Take a look at how hunting
together is going to be the
best way to secure reman’s
place in an uncertain
marketplace
Products
A new name for Knorr-
Bremse’s reman brand,
Rolls-Royce wins Transdev deal
and Gates extends engine
warranties
14The Big Interview
Jens Uhl at ZF Services on the
importance of core returns - and
reman’s sense of responsibility to
future generations
18Big R/ReMaTecUSA
Preview
Products, exhibitors and
conference sessions: we give
you the lowdown on exactly what
to look out for in Las Vegas
Remanufacturer
of the Year 2016
Who will take reman’s most
prestigious award? The nominees
are revealed at rematecnews.com
COVER STORY
‘The core is the bloodline’
Henry Foxx at Bendix talks about the
importance of experience, and the
danger from clones and knock-offs
13
06 34
35
36
42
24
31
32
6. 06 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
NEWS
In a previous issue of ReMaTecNews, a
picture on the APRA page was incorrectly
captioned. Rather than Malcolm Morris,
it should have been Alan Smart, ATP
chairman. The correct version is below.
ATP Industries Group secures The
Queen’s Award for Enterprise – Innovation
Category. Amanda Milling, MP for Cannock
Chase, congratulates Alan Smart, ATP
chairman, at the gala dinner of the APRA
European Remanufacturing Symposium in
Birmingham.
Remanufacturing is set to
be one of the key circular
strategies which automotive
manufacturers will have to
adopt if they want to meet
future changes in customer
demand. That was the
message from David Kemps
of ABN AMRO, speaking at
a workshop hosted by the
European Remanufacturing
Network (ERN) during
Automechanika Frankfurt.
ABN AMRO’s report On the
Road to the Circular Car,
published in collaboration
with Circle Economy, predicts
that reman will play a
major role as OEMs rethink
production processes.
Consumer trends towards
wanting access to cars rather
than owning them will mean
that business models will
need to change. The ‘reman
bootcamp’ workshop also
identified some of the main
barriers that prevent reman
from taking place on a large
scale. These were:
•Mindset of OEMs
•Benefits of reman are not
understood and accepted
•Reman firms are not visible
•Market simply demands
cheaper products and parts
•Gaining access to cores is
difficult
•Trade barriers
•Companies need to reverse
engineer as suppliers do
not share engineering info
about products
Reman will form part of
a new standard of circular
strategies, which also include
modular design, use of used
and recyclable materials,
life-time extension, smart
take-back schemes, and
high value recycling, said
Thijs Jasink of car electronic
component remanufacturer
ACtronics.
Reman key to
circular strategy
David Kemps,
ABN AMRO
Reman leaders are hopeful that the
agreement by six trade associations
to find common definitions for basic
industry terms - ‘remanufacturing
process’ and ‘core’ - will help increase
awareness of remanufactured
products. “The increased use of
remanufactured products around the
world is accelerating an international
drive towards a circular economy,”
says John Chalifoux, president and
chief operating officer of MERA. The
common definitions will “further help
the industry communicate the quality,
value and sustainability benefits of
remanufactured goods”. The fact that
they have been agreed across borders
is particularly significant, according
to Salvador Munoz Zarate, general
manager of WABCO Reman Solutions
and delegate of CLEPA to the Basel
Convention: “It’s a giant step forward
for a global and ever-growing industry.”
Peter Bartel, vice chairman of the
APRA Europe Board, insists that
remanufacturing is more and more on
the agenda of governments, adding
that the decision “will enable us
to speak with one voice, enabling
us to better present our views and
solutions around sustainability to our
customers, relevant organisations,
policymakers and governments around
the globe”.
● See What’s in a name? p35
New definitions to boost business ATP INDUSTRIES GROUP:
CORRECTION
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Providing a solution where no repair option exists
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8. Organized by: Media partner:
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• Attend inspiring sessions in the ReMaTec Theatre
Visit our website and stay up-to-date!
www.rematec.com/amsterdam
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www.facebook.com/rematecamsterdam
9. ReMaTecNews 09Email your comments and stories to editorial@rematecnews.com
NEWS
NSL AUTOMOTIVE
EXPANDS
UK reman firm NSL
Automotive Components
has announced plans
for further investment
at its Coventry, West
Midlands, base following
a series of contract
wins. NSL specialises in
remanufacturing power
steering racks, pumps,
boxes and brake calipers
for the automotive and
light commercial motor
trade, but plans to
grow its product range.
The company says it
is currently developing
the processes to allow
the remanufacturing
of electrical steering
columns.
ACE AWARD
LAUNCH
The Remanufacturing
Industries Council (RIC) is
to launch a new awards
scheme at APRA’s Big R/
ReMaTec Remanufacturer
of the Year Award
reception in Las Vegas.
The first annual RIC
Remanufacturing ACE
Award will consider
nominees in three
categories across all
reman sectors. The
categories are: Advocate
(which looks for the
promotion of reman in
business, government or
education); Collaborate
(for those which work
with other companies,
regulatory bodies or
law makers to promote
reman); and Educate
(which will be won by
someone with “a passion
toward educating others
about the many benefits
of remanufacturing”).
● See Big R/ReMaTecUSA
preview, p18
Remanufacturing can lead to
a 25% reduction in demand
for new lithium-ion batteries
used in electric vehicles,
according to research by the
US-based Mineta National
Transit Research Consortium.
“This is a great achievement,
keeping in mind the
environmental impact of the
manufacturing process for
new batteries,” says Mineta’s
Dr Charles R. Standridge.
The researchers suggest that
use of lithium-ion batteries in
vehicles is growing in order
to support electrification and
meet increasing average
gas-mileage targets and
to decrease greenhouse
gas emissions. The report,
Advances in Repurposing
and Recycling of Post-
Vehicle-Application Lithium-
Ion Batteries, identifies
reman as one of three
methods to improve the
post-vehicle-application
use of electric vehicle
batteries. The other two
are repurposing for non-
vehicle, stationary storage
applications, and recycling
- extracting the precious
metals, chemicals and other
by-products. The report
says that recycling capacity
needed by 2030, regardless
of the percentage of post-
vehicle-application batteries
selected for reman, will
be approximately 85% of
the combined repurposing-
remanufacturing capacity.
“The need for recycling
becomes significant for the
first time between 2022 and
2024, growing steadily over
time thereafter,” the report
says. It will be important to
build capacity that is flexible
between repurposing and
remanufacturing tasks, it
concludes.
Reman cuts new
battery demand
The Center for Remanufacturing and
Resources Recovery (C3R) at Rochester
Institute of Technology in the US is restoring
legacy components using Optomec’s LENS 3D
hybrid vertical milling center (VMC) system.
C3R is employing the LENS 3D Hybrid VMC as
a way to remanufacture complex components
for industry and government equipment.
The hybrid system at C3R utilises LENS
3D printing technology integrated within
a conventional CNC vertical mill providing
additive and subtractive capabilities in a
single machine tool. The LENS process
can either fully build 3D metal parts, when
replacement parts are no longer available, or
selectively and precisely add materials onto
an existing metal component of almost any
three-dimensional shape – making it suitable
to perform reman operations. Leveraging
LENS Directed Energy Deposition technology,
the process, combined with a traditional
mill, allows parts to have damaged material
removed, surface prepared, structure restored
and function machined back into the part, all
within a single set-up.
C3R focuses on Optomec LENS
10. 10 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
NEWS
TREADWRIGHT GETS
GREEN AWARD
TreadWright Tires has been
given an environmental
award to mark its reman
work. The US group has
won Business Intelligence
Group’s BIG Award
for Business: Green
Company of the Year
2016. “Sustainability
has always been a key
element to TreadWright’s
business strategy,” says
Anthony Showen, CEO
of TreadWright. The
award was given “for
its efforts in providing
durable, sustainable,
remanufactured
tyres at an affordable
price, minimising the
environmental impact of
the millions of tyres and
tyre compounds thrown
out each year in the US”,
the firm says. Production
is at the company’s
facility in Houston, Texas.
TreadWright uses the same
mould cure process as
traditional manufacturers
of OEM tires. “Modern
companies are now relying
on their customers for
inspiration and direction
to improve and launch
new products,” says Russ
Fordyce, MD of Business
Intelligence. The awards
are judged by business
executives using a scoring
system which seeks to
measure performance
across a range of business
areas.
US group LKQ Corporation, the owner of Euro
Car Parts in the UK, has bought UK auto parts
distributor Andrew Page. LKQ is acquiring
most of the assets and operations of Andrew
Page, other than seven of the Leeds firm’s 109
branches. Robert L. Wagman, LKQ president
and CEO, insists that “customers will benefit
from an extended range of products”. Jim
Sumner, chairman of Andrew Page, says: “We
are pleased at the completion of the sale, which
brings the business and its employees into a
global group with more than $8 billion in sales.”
Sumner will stand down after the transaction
is completed. Andrew Page had sales of £192
million last year and has over 2,000 full-time
and part-time staff. Chief executive Mark
Saunder adds: “This is a great deal for Andrew
Page and its employees and puts us in a strong
position for the future. We are looking forward
to working with LKQ at an exciting time for
the motor parts sector, which is undergoing
consolidation throughout Europe.” Andrew
Page’s interest in the reman sector includes
deals earlier this year to become a supplier
of TRW single shock absorbers and Hoffman
turbochargers through Autocharge UK.
LKQ buys
Andrew Page
Power management company
Eaton has added Drivetrain
Service & Components to
its Authorized Rebuilder
programme. Eaton launched
its scheme in 2013
to ensure that locally-
built remanufactured
transmissions include
genuine Eaton components.
Based in Bensenville,
Illinois – near Chicago’s
O’Hare Airport – Drivetrain
“has a long-standing and
well-regarded reputation as
a premier rebuilder in the
greater Chicago area”, says
Bill Fouch, NAFTA aftermarket
manager at Eaton. “This
new partnership with Eaton
verifies our commitment to
always providing the very best
in quality products,” said
Drivetrain president Paresh
Patel. Other companies
signed up to the scheme
include PowerTrain in
Indianapolis, New Jersey-
based TransAxle, and Pacific
Truck in Edmonton, Alberta.
To be part of the programme
they need to complete Eaton’s
technical and sales training
and meet Eaton’s reman
criteria. Eaton had sales
of $20.9 billion in 2015.
Founded in 1980, Drivetrain
has 30 employees and a
40,000-square-foot office,
warehouse and shop facility.
Eaton appoints
Drivetrain
Eaton’s Authorized Rebuilder
programme has been
running since 2013
Trend for reman
mergers continues
with LKQ’s acquisition
of Andrew Page
11.
12. Is Non-Destructive
Cleaning Critical?
ARMEX and ARM & HAMMER are trademarks of Church & Dwight Co., Inc.
When cleaning parts that cannot have specifications
or surface tolerances change, the only blasting
abrasive to use is ARMEX. Other hard blasting
abrasives can remove surface materials damaging
threads and changing the specifications and surface
tolerances rendering parts unusable.
The gentle physical propriety of baking soda but
yet aggressive cleaning ability is what makes
ARMEX the only choice. ARMEX is also soluble
meaning it will dissolve in both water and oil.
ARMEX will never leave particles behind in critical
passageways like other hard blasting abrasives
which can increase the risk of part failure
when placed back into service.
Use ARMEX to clean, degrease and remove burnt
on carbon and paint on a wide variety of materials
including steel, aluminum, lead, magnesium, alloys,
plastics, rubber and composites.
ARMEX for When Non-Destructive Cleaning is Critical.
ARMEX Is The Only Choice
Learn more at www.armex.com
Before After
Before
After
13. REMANUFACTURER OF THE YEAR
ReMaTecNews 13Email your comments and stories to editorial@rematecnews.com
The pursuit of excellence
R
eMaTecNews’ Remanufacturer
of the Year award is the
most prestigious honour
in the remanufacturing
industry. Founded in 2005 and now
in its 12th year, the prize is given to a
person or business that has served the
remanufacturing industry with particular
distinction. Within the industry it is
considered a major accolade and, over
its lifetime, the award has celebrated
the achievements of some of the reman
industry’s most important and best-
known names.
Fittingly, at a time when we are all
increasingly aware of our responsibilities
to future generations, the award
is intended to highlight the huge
commercial and environmental benefits
of remanufacturing.
The winner of the trophy – whether
a company or an individual - will stand
head and shoulders above their peers
and will have served the reman sector
with particular distinction.
For example, it could be that a firm
has, in some way, made a special
contribution to the remanufacturing
industry. Equally, it may be given to a
person who has shown a continually
excellent performance in their work
or whose efforts have been proven to
make a real difference to the industry.
Either way, candidates are evaluated on
a number of stringent criteria, which
include technical excellence, commitment
to quality, impact on the remanufacturing
industry and customer service.
Winning is hard: in 2015 the
honour went to Søren Toft-Jensen,
founder and owner of Denmark-based
Borg Automotive, Europe’s largest
independent remanufacturing company.
He received the award for outstanding
entrepreneurship in the field of reman
over the best part of 40 years. During
this time he has transformed a modest
electrical repair shop in a small town in
Denmark into a European heavyweight
with around 900 employees and
significant operations in the UK, Poland
and Belgium.
The list of Remanufacturer of the Year
Award winners from previous years reads
like a Who’s Who of the reman sector:
2015: Søren Toft-Jensen,
Borg Automotive (pictured left)
2014: Jack Stack, SRC Holdings
2013: Alan Smart, ATP
2012: Doug Wolma, Dana Corporation
2011: Philippe James,
Remy Automotive Europe
2010: Francois Augnet, TRW
2009: Carsten Bücker, BU Drive Group
2008: Johan van Gerven,
MRT Engines
2007: Martin Detzen, MD Rebuilt
2006: Alexander Schäfer,
MS Motor Service Int
2005: Jens Lindholm,
Holger Christiansen
The nominees for ReMaTecNews’ prestigious Remanufacturer of
the Year 2016 award have been announced – now the judges have
to decide which company or individual has done enough to lift the
trophy at the BigR / ReMaTecUSA later this month
Following in
famous footsteps
For a full list of
nominees, go to
rematecnews.com
14. THE BIG INTERVIEW
14 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
J
ens Uhl has an eye on the future.
As a boy, he did not dream of a
career in reman – but the head
of remanufacturing & repair at
ZF Services is glad that this is where
he landed five years ago. “It excites and
motivates me to work in a business
which covers in combination three
aspects: to deliver requested products
for the market, to secure jobs with the
continuously growing business and
to take care for our environmental
protection for our next generation,”
he says. He has been with ZF for
nearly a quarter of a century now,
in a variety of different functions in
several international locations. Uhl got
to know ZF during a voluntary half-
year internship in the US, where he
was studying production engineering.
He even did some work at the edges
of reman all that time ago, making an
academic study of the recycling and
disassembly of washing machines “It was
a great opportunity to start with ZF’s
international trainee programme because
I could rotate through several business
areas,” he recalls now.
Social responsibility
Before moving into the aftermarket, he
was responsible for the industrialisation
of hydraulic pumps and electric motors
for steering pumps and was leading
volume production, making more than
four million units per year. This set him
thinking. “When you have children and,
with that, take over additional social
responsibility for another
generation, you start
to think more and
more about sustainable
management and growth,”
he says. This explains
why Uhl is so proud of his
company’s efforts to preserve
resources for future generations.
“This commitment to sustainable
environmental protection is anchored
in ZF’s Corporate Principles and is the
basis for our work,” he explains. “We
design our processes and products to
be as energy- and resource-efficient as
possible. We reduce our environmental
impacts - such as CO2 emissions –
continuously by improving our standards
and with that being a role model when
it comes to environmental protection.”
Non-profit projects, under the ‘ZF hilft’
banner, are also a big part of ZF’s
mission, supporting numerous national
and global projects on education, social
affairs, culture, environmental protection
and sport.
Environmental protection
But reman itself is a really good example
of industry doing its best to be ‘green’,
he goes on: “With remanufactured
components, manufacturers and users
Taking care of
the future
For Jens Uhl, reman is a fine source of revenue
and job creation – but perhaps most importantly,
it helps conserve resources for the generations
which follow us. Adam Hill finds out more
15. THE BIG INTERVIEW
ReMaTecNews 15Email your comments and stories to editorial@rematecnews.com
can contribute to better environmental
protection. The impact is even stronger
than that of recycling, although the
proportion of recyclable materials in
new ZF products amounts to around
95%. When remanufacturing a used
unit, 50-90% less material is required
in comparison to the manufacturing of
a new product.” These are the sort of
figures which should be more widely
known by the public. He also points to
initiatives within the European Union
to reduce CO2 emissions and ensure
sustainability, such as the commitment
by G7 members at their summit in 2015
to support the circular economy and
remanufacturing. “China for example
has integrated remanufacturing as
part of their five-year plan,” he adds.
There are still challenges to meet, he
acknowledges, with trade barriers
in countries such as Brazil, Turkey,
Russia and China, for instance. “The
local authorities and markets are not
experienced to deal with core deposit
systems and ownership of cores,” Uhl
goes on. “In addition transboundary
restrictions of these countries still
handicap dealing with cores or
remanufactured products across the
borders. Here we need support by the
governments via our associations.”
“I’m not a loud
manager: the business
and the customer’s
satisfaction are what’s
important…the best
possible result counts,
not who made it”
Pushing ahead: ZF Services looks to
reduce its environmental impact
➤
16. THE BIG INTERVIEW
16 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
Significant business
However, all in all, the concept of the
circular economy – and reman’s part in
it – has become better understood in
recent years, with the lobbying efforts of
associations doing great work in pushing
the reman sector’s contribution. “But
of course, the whole sector needs even
more advancement,” he says. At present,
remanufactured components - mainly
transmissions, axles, steering systems
and clutches - form a tiny percentage of
ZF’s sales but Uhl expects this to grow.
“We have already in some product lines a
significant business with remanufactured
products,” he says. “We assume that,
due to technical reasons but also due
to reasons of future legislation, the
demand will grow. For transmissions or
axles - particularly for CVs, buses or off-
highway vehicles - reman complements
our repair service in our worldwide
service network perfectly, depending
on individual customer demands.” As
products become smarter and more
complex in the future – for example,
by integrating mechatronic components
together with tricky software – this need
will increase. Of course, the rise in the
proportion of electrical components in
vehicle systems seems to present a real
challenge for reman companies. “For us,
as Tier 1 supplier, it is an opportunity,”
he confirms. “The more we step into our
own production of mechatronics in the
future, the easier it is for us to set up
our own suitable reman processes.” ZF
itself has undergone a significant change
recently, with the TRW transaction
and creation of one ZF Aftermarket
organisation. “With TRW we enlarge
our product portfolio in general with
the target to be a one-stop shop for our
customers as well as we also extend our
product portfolio for remanufactured
calipers and steerings,” he explains. It
also increases the global footprint of ZF’s
reman production locations. “TRW is very
advanced in remanufacturing for calipers
and steerings in Europe,” he says. “And
we can improve core management
together by using one enhanced system
for commodities, which will simplify the
process for our customers.”
Supportive management
Putting these things in place is made
a great deal easier if companies’ top
management is supportive, and Uhl has
been lucky in this regard: he speaks
with some fondness about his mentors.
“Alois Ludwig, the former CEO of ZF
Services, and Hans-Peter Bach, in the
ZF Services Board once responsible for
reman globally, supported me by giving
me the scope to form our worldwide
reman approach and activities, including
core management,” he says. “For such a
strategic approach you need support, the
power and the network too for getting
strategic decisions quickly.” And what
about Uhls himself? He sounds like the
sort of senior executive who supports
his staff and enjoys giving them the
credit wherever he can. “I’m not a loud
manager,” he laughs. “The business and
the customer’s satisfaction are what’s
important, and it is my job to bring that
alive. The best possible result counts, not
who made it.”
➤
‘We still need to improve
the core return’
The idea of the core is one to which
Jens Uhl of ZF Services returns more
than once: it is one of his frustrations
that the core is not taken seriously
enough. For commodity parts, ZF
uses the core collection network
CoremanNet of Circular Economy
Solutions, “to provide the customers
a system as simple as possible for
them”. Reman-friendly design is
also important in the early stage of
product design, he adds. “We still
need to improve the core return,”
he says firmly. “There has to be an
understanding that, without core
return, there is no reman. Everybody
in the whole distribution channel
down to the workshop and consumer
needs to understand that the core is
the basis and a value that needs to
be returned as we all have learned in
principle to do with bottles – and still
money drives to return an unbroken
bottle, to refill it again in this circular
economy. Everybody has to be aware
about it and finally to support this
requirement. Of course, this needs an
additional effort, the acceptance to
deal with deposits or core surcharges
via the entire distribution channel and
also the right systems.”
Bright future: ZF expects
reman demand to grow
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: at the core of remanufacturing
18. BigR/ReMaTecUSA PREVIEW
18 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
L
as Vegas has cemented a
reputation as a grown-up
playground - but for one
weekend this month (29-30
October) it will be a magnet for anyone
in the remanufacturing industry.
While Kanye West and Elton John are
both playing elsewhere in the city, reman
professionals will be doing business at
the BigR/ReMaTecUSA event as their
main attraction.
Big name suppliers from various
industry segments will host exhibits
from noon until 5pm both days of the
show. A total of 90 companies will
display products and services including
alternators, starters, remanufacturing
equipment, electronic components,
engine parts, turbochargers, testing/
diagnostic equipment, brake components,
cleaning equipment, air conditioning/
cooling components, transmission parts,
steering system components, lighting,
powertrains and more.
As a bonus, on Saturday 29 October,
BigR/ReMaTecUSA shares one large
exhibition floor with the Automatic
Transmission Rebuilders Association’s
(ATRA) Powertrain EXPO. In addition
to the exhibition there will be speakers
and educational seminars. Keynoting
the event is Bogi Lateiner, a master
mechanic and star of All Girls Garage on
the Velocity Channel. Lateiner’s session
is titled Remanufacturing Your Brand:
How to Maximize Sales & Profits by
Overcoming Negative Perceptions. She will
explore the perceptions remanufacturers
have to compete with, what the end-
user is demanding of replacement parts
and how to position your company to
maximize sales and profits.
A writer, speaker, teacher and
recognized industry spokesperson,
Lateiner will provide answers to the
following questions:
• Who is your customer and what are
they looking for in a replacement part?
• What are the challenges facing the
reman industry?
• What is the perception of reman parts
and how to overcome it?
• How can you differentiate your
company from the competition?
• How can we all work together
to overcome obstacles facing the
automotive industry as a whole to
rebuild a stronger future?
Mike Rayne, managing director of
FTI Consulting, is giving the Sunday 30
October breakfast presentation titled
Remanufacturing Industry Disruption:
Trends and Opportunities. Rayne
will review the automotive industry
in the context of new and emerging
technologies along with the reman
implications.
His presentation will focus on short-,
medium- and long-term risks and
opportunities. Rayne is an industry
veteran with more than 35 years’
experience in the automotive industry
and served in global executive roles for
Delphi and TRW.
Last year 1,400 attendees from 60
countries took part in the show and took
advantage of the opportunities the BigR/
ReMaTecUSA provided to grow their
network inside and outside the US.
For full details please visit the website:
www.rematec.com/usa
BigR/ReMaTecUSA:
open for business
Networking opportunities and educational sessions plus product and services exhibits:
Denise Rondini looks at what visitors can expect from the BigR/ReMaTecUSA event in Las Vegas
19. BigR/ReMaTecUSA PREVIEW
ReMaTecNews 19Email your comments and stories to editorial@rematecnews.com
At a glance:
BigR/ReMaTecUSA seminar programme
The show also features a seminar
programme covering a variety of topics.
Mohammad Sammii, president and
owner of Sammy’s Auto Electric Service
in Champaign, Illinois, will provide
an update on newer charging and
starting systems including those from
Chrysler, Honda, Toyota and various LIN
alternators. He will also give a brief
introduction to vehicle communication
systems and data-bus operation.
Additive Manufacturing and 3D Printing
— Hype or the Future of Reman? is
the title of a presentation by Michael
Haselkorn, from the Golisano Institute
for Sustainability at the Rochester
Institute of Technology. Haselkorn will
review both additive manufacturing and
3D printing and will use case studies to
show the ways these technologies are
being used in reman. He will also speak
about growth opportunities for these
technologies in the industry.
Bob Jeffries, manager of fleet services
at Delco Remy, a Borg Warner Company,
will focus on batteries in his session
AGM Batteries: The Good, The Bad and
The Ugly. He will explain what AGM
batteries are, their advantages and
disadvantages and also give tips on
how to speak with customers to avoid
misapplication of these batteries.
Advanced Test Methods for Starters &
Alternators and their Components will be
presented by Phillip Falk, of StrAuCon
International. He will look at how dynamic
test methods can improve warranty
testing and give information about
the condition of the alternator prior to
disassembly. Falk will also show how an
oscilloscope can quickly indicate which
components are faulty, and will address
starter and alternator brush technology.
Bob German, engineer and business
development manager for Flight
Systems Automotive Group will focus his
presentation on strategies and practices
for reman mechatronics.
The growth of modules like ECMs,
throttle bodies, EGR modules,
instrument clusters, actuators and
infotainment systems present new
opportunities to remanufacturers and for
independent aftermarket companies to
collaborate with Tier 1 and automotive
OEMs. The session will discuss the
size and scope of the market and the
capabilities needed to reman these
components. There will also be a
discussion about the future of this
segment of the reman market.
Hybrid Parts are Inter-Connected to
Everything is a presentation by Craig
Van Batenburg, CEO of ACDC. He will
explain how the connectedness of
hybrid systems impacts your job as a
remanufacturer. The session will focus
on hybrid cars. Batenburg will also
present additional sessions titled Plugin
Cars are Connected to the Power Grid and
The Connected Future Cars.
Omar Cueto and Dennis Jacinto will co-
present a session on e-commerce titled
E-Commerce: Grow Your Reman Business
One Click at a Time. They will explain how
using Amazon, Alibaba and similar sites
can connect you to potential customers
all over the world.
There will also be a panel discussion
on parts cleaning technology – since no
reman operation is complete without a
cleaning operation. The discussion
will center around the types of
cleaning currently being done, as well
as the latest cleaning technology
developments.
Remanufacturer
of the Year Award
The Remanufacturer of the Year
award will be presented on October
29 during the BigR/ReMaTecUSA
reception. Since 2005 ReMaTecNews
has awarded the automotive and
commercial vehicle remanufacturing
industry’s most coveted award to
an individual or a company that has
served the sector with particular
distinction.
Companies and individuals
nominated candidates for the
award. It seeks to honor those who
have made a special contribution
to the remanufacturing industry,
an individual who has shown a
continuous excellent performance
or whose efforts have been proven
to make a real difference to the
industry.
Candidates are evaluated on a
number of criteria such as technical
excellence, commitment to quality,
impact on the remanufacturing
industry and customer service.
20. Visit us at
Automechanika Frankfurt
September 13–17, 2016
Hall 5.1, Booth B20
World leader
in belt tensioning and vibration
control devices.
21. Big R/ReMaTecUSA EXHIBITOR LIST
ReMaTecNews 21Email your comments and stories to editorial@rematecnews.com
Company Booth
3Dvangelist 209
A
APRA - Automotive Parts
Remanufacturers Association 701.802
Accumax Auto Parts. Inc 634
Aftermarket International 519
Armec S.N.C. 202
ARMEX™ 409
AT Hidraulic 539
B
BPS Cores, Inc. 400
C
Circular Economy Solutions GmbH 606
CRP Automotive 401
D
D&D Instruments 618
D&V Electronics Ltd. 605
DACTEM Technologies 628
DAH KEE Co., Ltd. 806
DC Tricore Inc. 525
Diesel Parts of America 624
Dieselcore 210
Dorman Products 527
DS USA Ltd. 717
Duncan Recycling and Refining LLC 629
E
E&E Turbo 619
F
Flying Usa 608
G
G2 Diesel Products 601
Globo-SA Inc 614
Gobbi Spare Parts S.p.A 632
Goldfarb & Associates Inc. 708
Company Booth
H
Hangzhou Autosalon Exhibiton
Co., Ltd. 610
HART BROS CORE CO LLC 501
HC-Cargo 700
Hebei Changli Auto Parts Co., Ltd. 810
Hebei Jiang Lun Electrical CO.,LTD 709
Hejian Jiu Jiu Mechanical Electrical
CO.,LTD 816
Hejian Xinglin Vehicle
Accessories Factory 809
Hejian Zhongli Auto Parts Co., Ltd. 808
Herm-Archer Turbochargers 603
Houghton International Inc. 506A
Huichang Company 720
I
International Automotive
Trading, Inc. 625
J
Jada USA, Llc. 626
Jiangsu Easyland Automotive
Corporation 515
JJ Cores International Inc. 506
K
K. Wilson 627
Kotek America, Inc. 704
L
L R Miller Company, Inc. 710
Lester Catalog Company 505
Level Seven 310
Litens Aftermarket Network 703
M
MCI Cores 533
Melett North America Inc 716
MSG 638
Mylex International Inc. 309
N
NSK 528
Company Booth
H
Paul Automobiles 722
Phoenix Automotive Cores 715
Picopulse (ChangShu) Auto Motor
Company Limited. 711
Pollution Control Products Co. 725
Pos Service Holland 611
Power Test, Inc. 600
R
RAS Rebuilders Automotive Supply 301
Romaine Electric Corporation 529
Ruian Mingzhou (Sinomz)
Auto Parts Co., Ltd 602
S
SDA Import-Export B.V. 718
T
Taizhou Proch Auto-Parts Co., Ltd. 828
The Recycler Core Company Inc. 201
TRANSBITE/Allen Woods &
Associates 824
Turbo International 604
U
Unlimited Packaging & Supplies, Inc. 622
V
Vensel Enterprises 804
W
Wagner Alternators & Supplies, Inc. 700
Wah Seng Industry Sdn. Bhd. 702
WAIglobal - Wetherill Associates Inc. 505
Y
YOTA Enterprise 630
YouTech Group LLC 701.802
Z
Zhangjiagang Loubuv Remanufacturing
Technology Co., Ltd. 814
23. ATP Industries Group Ltd. Cannock Wood
Industrial Estate, Cannock Wood Street,
Cannock, Staffordshire, WS12 0PL, UK
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24. VOX POP
24 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
Volker Schittenhelm, reman
specialist, Schaeffler Automotive Aftermarket
Challenge
All reman associations and
stakeholders must set up a ‘wish
list’ for politicians so that they can
support the reman industry to increase
knowledge about, and acceptance of,
reman parts in the markets. There are
tax issues, such as tax reduction and
the common treatment of core taxes
within the European Union and globally.
Within the next five years I expect
reman quotas for end-of-life vehicles
(ELVs): car manufacturers then must
fulfill these quotas. For that, they need
their suppliers with reman businesses
- so every reman executive should be
prepared for that additional demand.
Solution
The automotive reman industry should
promote the just-released reman
definitions for a) reman product b)
reman process and c) core. They must
set up a promotion package to explain
to people the difference between reman
and material recycling. I also believe
the ‘push’ market (where we all have
to inform the market about reman) will
change to a ‘pull’ market (which exists
in the US already, where the customers
ask for reman first).
Reman today:
ReMaTecNews asked the reman industry two questions: what are the challenges that should be front of mind
for executives right now – and how can we overcome them? The answers are not exactly what you might expect
Timo Flettner, head of sales, TransTec
Europe, Middle East and Pacific Rim
Challenge
Remanufacturing competes with new
parts and technologies. There are also
new repair techniques and product
innovations, plus the complexity of
integrated components and range
coverage to consider. The frequency of
repairs is overall lower - and increases
later - than for the total aftermarket:
so it is a challenge to plan the launch
of new products or to put the right
products in place at the right time. Parts
availability has a significant impact
on success and customer satisfaction.
There is a threat from new, cheap parts
produced in low-cost countries, and
growing environmental consciousness in
emerging markets. In general, the market
trend is for longer life-time of original
units and single parts (parts are getting
better and better) combined to achieve
reduction in fuel consumption and CO2
emissions. The technology of parts and
units gets more complex, requires more
knowledge and technical education of
rebuilders - which is time- and cost-
intensive - also for test equipment (for
example, electric power steering). Full
range coverage is required to offer a
one-stop-shop solution, which requires
effort in range development and parts
availability. Economic crisis and political
instability in some European regions
changes customers’ buying behaviour.
More cheap, acceptable quality products
are being traded and offered from
competitors in low-cost regions (for
example, India and Far East) and enter
the EU market, which ends in a price war.
Solution
Increase the offer of technical products,
services and support to explain your
product value against new or cheap parts
produced in low-cost countries. Adapt
your business to technology changes.
Offer a full parts portfolio, especially
in mature and growing markets with
sustainable products and services. Find
ways to compete against low-price
new parts. Adaption of the parts offer
to new technologies and finding ways
to compete against low-price parts -
combined with high support and services
- are the key elements for success.
Michael Kelly, sales and marketing
manager, D & V Electronics
Challenge
Surviving the down market: 2008 to
2010 were very bad years for car sales
worldwide, and now we are experiencing
what low OEM car sales mean to the
aftermarket. Technology changes: we
are in the electrical area - starters,
alternators, electric motors, inverters.
The technology at the OEM level is
uncertain, so in a few years it will be
equally uncertain in the aftermarket.
Electric motors cost thousands of dollars
and the equipment will be correspondingly
more expensive and complicated. Do
remanufacturers have the knowledge?
Solution
We saw the slowdown coming: are you
ready for the leap to 18 million vehicle
sales from eight million? Training and
preparation is the key.
Join the conversation!
the big challenges – and solutions
And for the next issue, give us your opinion
on this statement: China is an opportunity
for reman - not a threat!
Find ReMaTecNews on Linkedin
25. Your
customers
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26. COMPANY PROFILE
26 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
‘The core is the
US group Bendix Commercial Vehicle Systems has been involved
in the commercial vehicle industry since 1927: Henry Foxx,
head of the group’s remanufacturing business, tells Adam Hill
where things are now – and where they might go in the future
bloodline’
T
here is no substitute for
experience. The history of
Bendix Commercial Vehicle
Systems goes back to the 1920s,
which is quite some lineage. Now based
in Elyria, Ohio, Bendix can draw upon a
wealth of knowledge in its role as a Tier
1 supplier of comprehensive air brake
systems and components along with
leading edge active vehicle safety and
driver assistance systems.
Remanufacturing is high on its agenda
too: compressors, air dryers and brake
shoes account for the majority of the
company’s reman revenue, while valves
and electronics currently make up the
rest. Foxx predicts that this will grow. “As
we move forward, we expect to see an
increase in electronics,” he says.
Foxx is a nominee in ReMaTecNews’
prestigious Remanufacturer of the Year
competition. He is also a thoughtful
interviewee, weighing up questions
carefully before giving full, considered
answers. For example, asked if he thinks
reman is recession-proof he thinks for a
few seconds in silence. “It’s more stable,”
he says finally. “If the economy started
to decline, then reman wouldn’t decline
as much. You wouldn’t see those wild
swings.”
Leveraging expertise
There is a similar care in what Bendix
is doing in reman. “We can leverage our
proven OE expertise,” Foxx continues.
“For example, we use the same kind of
tests in reman as we do in OE production.
If we didn’t have that expertise it would
be more difficult. The majority of our
reman products are the same as those
we provide from an OE perspective. As
we move forward we’re looking at those
which will still service the commercial
vehicle marketplace. As we’ve grown
in reman, we’ve launched an all-makes
product line. Putting out a competitive
reman compressor, for instance, is an
example of how we’re complementing our
base portfolio.” The company’s synergies
in the commercial vehicle marketplace
will help this growth, Foxx believes.
Relations between Bendix and its
Munich-based parent company, the Knorr-
Bremse Group, are more than cordial,
Foxx insists: “Our parent also has a
reman group and we work together very
closely from a manufacturing and testing
viewpoint. We’re very well integrated in
reman, with a lot of the same processes
being utilised.”
Across its North American
manufacturing campuses Bendix has four
Bendix reman shoes are riveted according to the
same quality standards as OE shoes
27. COMPANY PROFILE
ReMaTecNews 27Email your comments and stories to editorial@rematecnews.com
facilities
dedicated to
reman: two in the
US and two in Mexico.
The former, located within
the manufacturing operations in
Huntington, Indiana, are focused on
remanufacturing shoes and compressors.
“We’ve been remanufacturing compressors
in Huntington for over two decades, so
that strong footprint was already there,
but we’ve gone into other areas as well,”
Foxx says. These newer ventures include
looking at electronics. Meanwhile, two
plants within the company’s campus in
Acuña, Mexico, have production lines
focused on the reman of air dryers and
valves.
Extending life
Bendix favours process-oriented
operations, based on Six-Sigma practices,
but is keen to see new techniques
coming down the track. “We’re always
looking at how to extend the useful life
of the core,” he suggests. “The core is the
bloodline
of remanufacturing.”
To that end – and
along with many others
in the industry - additive
manufacturing is one avenue
of interest at the moment. Foxx muses
enthusiastically about the possible
applications of 3D printing: “Is there an
opportunity there in remanufacturing?
How do you utilise it? We’re still at the
investigation stage. As with any new
process, initially there are cost concerns
but these will come down. We’re still
looking at the business case.”
One thing that is clear is Bendix’s
desire to expand its reman footprint.
“We’re transitioning other processes over
from OE, so it’s a matter of time before
these are
integrated,”
Foxx continues.
“The timeframe depends
on the product.”
When asked about how
competitors might view Bendix, he
answers initially with his own thoughts
on the company’s place in the reman
industry. “Bendix is currently one of
the premier remanufacturers,” he says. ➤
“Rebuilt is not reman: there are
knock-offs and clones being
thrown out by someone posing
as a remanufacturer”
Bendix brake shoes cool down following
the application of the advanced
coating and oven curing process
28. COMPANY PROFILE
28 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
“Look at our history: the ability to apply
our experience and expertise at OE
manufacturing and apply that – similar
processes and testing – and use them in
the reman arena, that separates us from
the rest.”
Bendix’s breadth is also impressive,
he believes. “From reman shoes to
electronics – it’s a broader array than
most,” Foxx continues. “But it’s not just
about products, we have a voice in
the industry itself. The Bendix name
and technological depth is recognised.
Through an ongoing and highly
interactive dialogue, we understand the
voice of the customer and we are always
in search of delivering a good value
proposition.”
‘Knock-offs and clones’
This voice is important. Foxx is
conscious of the challenges posed by
less scrupulous companies, which do not
offer the benefits of fully-remanufactured
products. “Rebuilt is not reman: there are
knock-offs and clones being thrown out
by someone posing as a remanufacturer,”
➤
Before (above) and after (right): used dryers
await evaluation...while remanufactured AD-9s
are ready to be boxed and shipped
he says. “It is incumbent on us as industry
leaders to aid in building awareness
and confidence in the marketplace to
demonstrate the benefits of reman. It
is important that customers should not
be wary: it is important to us, being a
remanufacturer, to make the market more
aware of the quality and performance
of reman products versus rebuilt or
used products. One thing is clear:
other options are sometimes linked to
reman but don’t provide the quality or
performance.”
He warms to his theme. “We
disassemble, inspect and test components,
then replace components, assemble and
fully test them to current OE spec before
providing it to the market – but others
don’t do the same due diligence: in some
cases they don’t replace components, so
they are putting a product out there that
just works for a period of time.”
This will not hamper Bendix’s growth
in reman, he says. “As we launch a new
OE product we’re already looking for a
reman version of that product. We’ll also
be searching for products to complement
the existing portfolio.”
Despite the competitiveness of the
sector, he sets great store by sharing
knowledge. “We’re in an industry that’s
still growing,” he says. “It’s important that,
as issues come up which affect us all,
players in the reman market have forums
where we can share best practice.”
This will keep the sector moving in the
right direction, he believes. “Continuous
improvement is imperative,” Foxx
concludes. “We have an unwavering focus
on the customer in all that we do. The
key is identifying customer needs and
developing products which meet those
needs.”
Put like that, it sounds simple: but
truly, there really is no substitute for
experience.
BENDIX: COMPANY HISTORY
1869: Westinghouse Air Brake Company established in Wilmerding, Pennsylvania to
manufacture air brakes
1927: Bendix Corporation formed by automotive engineer Vincent Bendix
1930: Bendix-Westinghouse Automotive Air Brake Company established following
merger of Bendix and Westinghouse
1973: Bendix-Westinghouse becomes Bendix Heavy Vehicle Systems Group
1980: Company establishes worldwide parts distribution centre and remanufacturing
operation in Huntington, Indiana
1982: Bendix Corporation merges with Allied Corporation: over next seven years
AlliedSignal becomes parent of Bendix Heavy Vehicle Systems Group-Europe
and truck air brake operation of Magneti Marelli is acquired
1999: AlliedSignal merges with Honeywell International, continuing to offer Bendix
brand name air brake and control systems and components in joint venture
with German group Knorr-Bremse
2002: Knorr-Bremse takes over Honeywell Commercial Vehicle Systems, changing its
name to Bendix Commercial Vehicle Systems
Foxx: ‘It’s not just about products,
we have a voice in the industry itself’
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30.
31. The three
drivers of reman
The main drivers for
companies to engage in
remanufacturing are not
the lure of environmental
savings and economic
incentives or the fear of
legislation: the security of
cores, future spare parts
supply and brand protection
are the underlying reasons.
Firstly, OES/VMs want to
control the cores market
and not let an independent
aftermarket remanufacturer
take advantage of the
design knowledge, material
and energy inputs invested
by them. Secondly, they
have to support their
vehicles for 10-15 years
and, after some time,
remanufactured parts are
the only way to supply
the spare parts. Finally,
OES/VMs want to protect
their brand image and
that translates to keeping
control over providing the
highest quality product
possible. OEMs/VMs who
do not remanufacture
open themselves up to
competition from their
own branded cores in the
aftermarket. There is a
risk of cheap, poor quality
OEM-branded products
entering the market. As
such, competition in the
aftermarket can be a driver
in reman decisions.
• Go to www.rematec.
com/blogs for more
ReMaTecNews 31Got a viewpoint to share with us? Email editorial@rematecnews.com
NOTES & COMMENT
VIEWPOINT
'Why can't reman
growth match recycling?'
David Fitzsimons
H
ow could annual
sales growth in
remanufactured
products begin to match that
seen in recycled materials
over the past 20 years? And if
this is to be done, which public
policy instruments will make
that growth possible? Thanks
to the recent leadership of the
Ellen MacArthur Foundation
in combination with the
long-term commitment from
individual leaders such as
Rolf Steinhilper, Walter Stahl,
Binshi Xu, Nabil Nasr, Bob
Lund, Henrique Rozenfeld,
Mitsutaka Matsumoto and
Bin Song, it looks now as if
policy thinkers at the United
Nations, Organisation for
Economic Co-operation and
Development, European Union
and within some governments
are going to answer these
two questions. If a consensus
emerges around the best
combination of policies,
this work could create a
period of new business
opportunities for OEMs and
specialist third parties. Above
all, if investors start to have
confidence in the policy
prescriptions and come to
believe that remanufacturing
could follow a similar growth
path to that witnessed in
materials recycling – then
expect to see many more
mergers and acquisitions in
the sector. Right now such
prospects seem remote.
Commodity prices continue
to fall and over-production in
the Chinese linear economy
churns out products at prices
that sometimes undermine
core collection systems. The
tensions between possible
longer-term benefits from
the circular economy and
the short-term need to sell
today’s output, will not go
away anytime soon. These
tensions are just as evident
in China’s 13th five-year plan
as they are in management
meetings at many product-
based businesses. But the
potential prizes in terms of
jobs, growth and improved
resource efficiency warrant
our renewed support for
those who are working
on the policy proposals:
the specialist staff
and associated
academics at the
UN, OECD, EU and
in governments.
They will need
to understand
value chains in
the sectors where
remanufacturing
already exists
i.e. automotive,
rail, aviation, HDOR,
marine, IT, medical devices,
defence, as well as in
those where it could yet be
developed. The Brussels-
based Remanufacturing
Council (Conseil Européen de
Remanufacture) – created
as part of the European
Remanufacturing Network
project - will be supporting
these global efforts to design
an improved economic
framework favourable to
remanufacturers. Business
leaders with operations in
any part of Europe who want
to shape these reforms are
invited to get in touch.
the Blog
Best of
“Over-production in the
Chinese linear economy
churns out products at
prices that sometimes
undermine core
collection systems”
David Fitzsimons, managing director, Oakdene Hollins
32. NOTES & COMMENT
32 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
R
obots have long since left the
pages of science fiction novels
and are no longer only seen
in Hollywood films. Their
presence has enhanced manufacturing
assembly lines all over the world - and
they could be particularly well-suited to
reman too, according to scientists at the
A*STAR Advanced Remanufacturing and
Technology Centre in Singapore.
Tijo Thayil, section manager for
robotics development at A*STAR, thinks
that robots will act as assistants to
human workers in the future – rather
than replacing humans altogether.
“We still need the intelligence and
perception of the human to identify
the appropriate tasks, and if the task
is something that is repeated, it can be
taken up by the robot,” he suggests.
As technology has advanced, it has
become possible for robots to carry
out more varied tasks than ever. “When
you produce a new part, we have
the Computer Aided Design or CAD
file and we know the shape exactly,
everything is defined - you can move
the tool according to the CAD file,” says
Thayil. But this is not the case with a
core, of course. “When it comes out
of service we don’t know how it will
look,” he continues. “And now, with
advancements in robotics, combined
with the latest technologies such as
vision modules and 3-D scanning
systems, robots can be tuned to respond
according to the variations in input
condition.”
The ability of modern robots to
handle smaller, less uniform batches
could help smaller manufacturers –
but also opens the way for this new
technology to take a greater role
in reman than has been possible
before.
Rise of the reman robots
Carsten BÜcker
Chairman, APRA Europe
Q What is your main role?
A To get APRA Europe
prepared for the future. The
market is changing and the
participants are changing
through mergers, for example.
It’s a big issue globally: the
same thing will happen in the
US, Europe, China and Asia.
As an association, we must
be a proactive part of the
reman industry.
Q What do you love about
reman?
A I’ve been involved in
the industry for 15 years
through my father – growing
up, the business was part
of breakfast every day! I
love that people working in
reman are passionate: they
are excited about what they
do. This is what has made us
the backbone of the circular
economy.
Q And what frustrates you
about the industry?
A With my APRA glasses
on, we have a very, very
fragmented market with
thousands of SMEs and
several large OEs. Therefore
it is very difficult to create
one voice for reman
because there are wide and
sometimes different interests
and different business
demands.
Q What companies do you
admire?
A Many companies. It is
impossible to pick one.
There is no way to compare
Caterpillar or Cummins with
a family-owned business, but
there are many examples
of companies which have
developed their business
successfully over the last
10-15 years. One of those
is Borg Automotive from
Denmark – an incredibly
successful story.
Robots have taken their place in a variety of manufacturing industries, including automotive: now
they could be heading for a major role in reman too, according to artificial intelligence experts
Could robots
have a bigger
place in reman?
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34. PEOPLE
34 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
Automotive aftermarket veteran Ray Ingraham has been appointed by gasoline
and diesel fuel injector specialist GB Remanufacturing as its central regional
sales manager. During 44 years in the industry, Ingraham has held a number
of management positions in both the distribution and vendor segments of the
business. “We are pleased to have Ray join the GB family,” says Russ Barker,
director of sales and marketing for GB. “Ray has a long history of working with his
customers to grow their business. He has a common sense approach that will be
beneficial as we continue to work with our distributors to grow the very successful
GB gasoline and diesel fuel injection programme.” Based in St. Louis, Missouri,
Ingraham currently sits on the manufacturer’s advisory council for the Automotive
Warehouse Distributors Association.
ATP Industries Group, the
remanufacturer of transmission,
powertrain and electronic products
for OEM and aftermarket sectors,
has promoted Steve Steadman to
the post of group financial director.
He joined the business in 1994
and is now responsible for
all aspects of financial
management and reporting
of all ATP Group
companies. His remit
covers the purchasing
and inventory teams,
as well as overseeing
IT outsourcing. ATP
managing director Tony Peck says:
“His experience and knowledge of
the business makes him a valuable
asset to the organisation, as we are
looking at strengthening our market
position globally.” ATP specialises in
the reman and testing of complex
automatic, CVT and dual clutch
transmissions for the automotive
and off-highway sectors, with clients
including Ford, JCB, Volvo, Chrysler
and Jaguar Land Rover in both the
UK and China. The group is based
near Birmingham, UK, and also has
companies in Michigan, US and
Guangzhou, China.
Steadman handles
ATP finance
Veteran Ingraham joins GB
Remanufacturing
New execs for
UMC ReTech
US remanufacturer UMC
ReTech has announced new
executive appointments
to its leadership team,
which will report to UMC
ReTech president Darryl
L. Anderson. Ken Kraus
becomes director of sales,
leading the strategic
planning of sales and
service functions, including
responsibility for the
leadership and management
of UMC ReTech’s internal
and external sales teams,
category managers and
outside representative
agencies. Chris Howd,
director of product
marketing, will lead the
firm’s product development,
supply chain management,
marketing and cataloguing
functions. Meanwhile
Andrew Ross will be
director of operations,
overseeing the company’s
continuous improvement
processes, and Sid Fox
takes the newly-created
role of inventory manager.
Anderson says the company
is “leveraging its workforce
expertise and product
knowledge”.
Denso puts Peng in charge
Denso Products and Services
Americas has created a new
position to oversee its reman
business. Yijun ‘Henry’ Peng,
previously at Cummins, has
been made general manager
of operations in Murrieta and
Long Beach, California. Peng
will be responsible for all
aspects of Denso’s existing
reman business - as well what
the company calls “its major
expansion initiatives to meet
growing market demand for
top quality reman products
in North America”. The
Murrieta plant deals with the
reman of starters, alternators
and diesel products and
has recently added a new
supply pump product line
and expanded its fuel
injector performance bench
test capabilities. Peng was
general manager of Cummins’
reman activities in China
where he oversaw business
development, operations
and long-term strategy. Most
recently, he was operations
leader for advancing Cummins’
next generation of high-
efficiency reman operations
in the Americas. Peng has
15 years’ experience in the
automotive and financial
industries: prior to Cummins,
he was a senior consultant at
both PwC and Deloitte.
35. COMMON DEFINITIONS
ReMaTecNews 35Email your comments and stories to editorial@rematecnews.com
What’s in a name?
Remanufacturing process
A standardized industrial process* by
which cores are returned to same-as-new,
or better, condition and performance. The
process is in line with specific technical
specifications, including engineering,
quality and testing standards. The
process yields fully warranted products.
*An established process, which is
fully documented and capable to fulfil
the requirements established by the
remanufacturer
Core
A previously sold, worn or non-functional
product or part, intended for the
remanufacturing process. During reverse
logistics, a core is protected, handled and
identified for remanufacturing to avoid
damage and to preserve its value. A core
is not waste or scrap and is not intended
to be reused before remanufacturing.
The industry should be applauding the six trade associations which have come together to work out
the common definitions of basic reman terms: their hard work will make everyone’s lives easier
B
eing able to put a name to
something means you can
identify it: being able to do
that leads to understanding
of it – and if you can understand what
something is then you can begin to
accept its importance. This is why it is
so heartening that six leading reman
associations with members in the
automotive sector have reached common
definitions of basic reman terms.
It represents a tremendous leap for
the industry when it comes to raising
awareness of, and confidence in,
remanufactured products.
The European Association of
Automotive Suppliers (CLEPA),
Motor & Equipment Remanufacturers
Association (MERA), Automotive Parts
Remanufacturers Association (APRA),
Automotive Parts Remanufacturers
National Association (ANRAP),
International Federation of Engine
Remanufacturers and Rebuilders (FIRM)
and Remanufacture Committee of China
Association of Automobile Manufactures
(CPRA) are to be congratulated in putting
their heads together in this sensible way.
“For many years, the lack of a common
understanding within the sector has led
to vigorous debate, misunderstandings
and lack of a unified movement,”
believes CLEPA president Roberto
Vavassori. That should not be a problem
from now on: if everyone in the industry
uses these terms going forward, then the
people who make the decisions which
influence and affect reman – politicians
and policymakers across the world – will
have no excuse for not knowing what
reman is and why it is so important to
the economy.
Everyone who is worried about
competition from the ‘spray and pray’
side of the market should embrace
these definitions wholeheartedly. John
Chalifoux, president and chief operating
officer of MERA, talked of how these will
“further help the industry communicate
the quality, value and sustainability
benefits of remanufactured goods”.
That can only be a good thing. To
finish, it is worth thinking about one of
the definitions of the word ‘definition’
itself: it means ‘distinctness in outline’.
Following the work of the reman
associations, we will all be able to see
more clearly.
Get the meaning: those two new reman definitions in full European trade associations have
already agreed the following:
Remanufactured part
It fulfils a function which is at least
equivalent compared to the original
part. It is restored from an existing part
(core), using standardised industrial
processes in line with specific technical
specifications. A remanufactured part
is given the same warranty as a new
part and it clearly identifies the part as
a remanufactured part and states the
remanufacturer.
36. PARTNERSHIPS
36 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
F
or most of its history, the
automotive remanufacturing
space operated as a largely
unacknowledged and unofficial
parallel process among OEMs and
independent remanufacturers. As the
OEMs worked to design and build
new and better vehicles, independent
remanufacturers and distributors
developed the capabilities to work with
the OEM cores. This effort resulted in
long-lasting relationships with second-
and third-tier vehicle owners who
brought their used, out-of-warranty
vehicles to independent remanufacturers
to keep them on the road with
remanufactured parts estimated to be
up to 40% cheaper to consumers than
new ones. This made remanufacturing a
recession-proof industry. For example,
according to the US International Trade
Commission, during the economic crisis
of 2009-2011, remanufacturing posted
15% revenue growth and 8% job growth
even as auto sales hit a 30-year low. The
industry employed half as many people
in 2009 as it did in 2000. Today, however,
that de facto understanding between
OEMs and independents is beginning to
fray.
The technology that goes into cars and
trucks (sophisticated electronic systems,
designed by OEMs with proprietary
and well-guarded intellectual property)
has changed the nature of the vehicles
we drive. It has also made reverse
engineering them problematic (if not
impossible) for the independents, of
which there are approximately 2,000-
3,000 in the US.
This means the independent
remanufacturer’s basic business model
is being challenged by technological
innovation and is at risk. At the
same time, automotive OEMs see
enormous growth opportunities in
the estimated annual $240 billion
automotive aftermarket parts market,
and remanufacturing is a fundamental
component of this growth strategy.
Tier 1 OEMs are moving aggressively
into the remanufacturing space. As they
do, independent remanufacturers are
being squeezed. They have the OEMs on
the one hand, and the grey market and
counterfeiters (especially in emerging
economies) on the other. Indeed, a
US Department of Commerce report
estimated that auto suppliers lost as
much as $45 billion worldwide in 2011
to counterfeiting, $3 billion in the US).
However, as OEMs attempt to move into
the remanufacturing space, leveraging
their new proprietary technologies and
their brand power, to capture a greater
part of the aftermarket and generate
needed new revenues and growth, they
confront significant barriers.
‘How can we hunt together?’
To date, there is little evidence that OEMs
can successfully capture those second-
and third-tier vehicle owners, design
products to be remanufactured easily, or
develop the returns forecasting models
that make for efficient remanufacturing
processes.
Moreover, for fear of diluting their
brand’s value with customers who
might wonder why one OEM would be
providing another OEM’s parts, OEMs
have long resisted the all-makes-and-
models remanufacturing standard that is
part of what has made the independent
remanufacturing business model so
successful.
Hunting together
for success
OEMs and independents must get together and use their combined
capabilities to address customer needs faster, more efficiently and
more effectively, suggest Ramesh Subramoniam and Mike Rayne
37. PARTNERSHIPS
ReMaTecNews 37Email your comments and stories to editorial@rematecnews.com
Both OEMs and independents are
facing challenges and opportunities.
The OEM’s challenge is to take
advantage of the remanufacturing
opportunity, reaching out to out-of-
warranty vehicle owners who have long
avoided dealerships and gone instead
to independent suppliers for parts,
and independent garages for repairs.
Meanwhile, independents must learn to
survive in this new environment.
If the OEMs eliminate the
independents, the grey market will
take over the aftermarket, providing no
benefit to the OEMs, or to consumers
who would have no reliable guarantors
of quality as a result. And if the
independents cannot work with the
OEMs to access their new technologies,
they will be consigned to a future
product portfolio of lower-margin,
lower-growth cores, such as brakes and
shocks. The solution for both OEMs
and independents pursuing growth is
clear. As the president of an automotive
OEM remanufacturer recently put it, the
question to ask is: ‘How can we hunt
together?’ OEMs and independents must
acknowledge their interdependencies,
and use their combined capabilities to
address customer needs faster, more
efficiently and more effectively.
To do so, OEMs and independents
need to join in partnerships, joint
ventures or mergers, because both
have what the other needs to thrive.
OEMs, however, must identify the
right remanufacturing partners. That
means performing due diligence that
goes beyond the classic examination
of financials to include the target
remanufacturer’s:
• Brand reputation
• Distribution channels’ depth and
breadth, product range and customer
base
• Margins and cost structures
• Reverse logistics capabilities and core
management team
• Ability to work with new technologies
that help companies track products,
product defects, schedule work, and
respond to customers
In the remanufacturing world, this
work has begun.
The barriers for OEMs
After years of focusing on selling
new products, OEMs lack a general
understanding of remanufacturing,
the aftermarket and what they both
entail. Often, OEMs attempting to enter
the aftermarket encounter push-back
from their dealers who believe that a
partnership between their parent and
an independent remanufacturer would
erode their market share and revenues.
In reality, those dealers do not have the
market they fear losing.
Second- and third-tier vehicle owners,
for example, do not go to dealerships for
replacement or remanufactured parts.
They go to convenient local independent
distributors with whom, in many
cases, they have had long and positive
relationships. OEMs, frequently, are also
concerned about diluting their brand by
getting into the all-makes-and-models
programme required to support the
broad array of remanufactured products
that will attract customers.
Again, in reality, the all-makes strategy
already has moved from an exclusively
independent aftermarket offering into
the mainstream of OEMs, and quite
successfully. For example, according
to Transport Topics, Navistar’s Fleetrite
brand, encompassing brands from Ford
to Mercedes, has grown from $10 million
to $150 million over the last six years.
Moreover, Tier 1 component
manufacturers have learned to reverse
engineer other OEM products. They
can now remanufacture products they
did not design or develop to the same
quality specifications as their own using
the same factories. Tier 1 OEMs that have
ventured into the all-makes-and-models
sphere, have increased market share
without damaging their brand value.
The barriers for independents
Today, with the increasing electronic
sophistication of almost all vehicles,
customers need technical support as
much, if not more, than parts. To provide
that support, independents require
access to proprietary technologies ➤
38. PARTNERSHIPS
38 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
and information, and access to special
tooling, not to mention training in both.
Without that access, independents may
be doomed to a low-tech, low-margin
future.
This looming reality should trump the
independents’ fear of losing their identity
by being swallowed up by large OEMs.
If they wait too long to find an OEM
partner, independents may find their
competitors have already made their
peace with them, leaving the laggards
on the outside, looking in. That’s a
dangerous place to be. The lower-
technology remanufactured products
those independents may be left with are
under extreme price pressure.
Increasingly, this product category is
being led by the grey market and, for
some product families, by foreign OEMs
offering low-cost new units which are
further collapsing the independents’
margins and eating away their market
share.
A classic case of disruption
While technology has created
challenges and disruption within the
remanufacturing industry, it has also
brought opportunities and real growth
potential. By leveraging their combined
strengths, market access, and capabilities,
OEMs and independents will fully
realise the potential that the automotive
market offers. With new automobile and
light truck sales only recently returning
to what they were 12 years ago, both
OEMs and independent remanufacturers
seeking growth need to adjust their
business models accordingly.
That means joining forces, each
contributing their particular strengths
and expertise, to collaboratively address
business challenges strategically and
holistically. There is valuable – but
dispersed – knowledge in the supply
chain, relating to distribution and
product characteristics, that needs
to be captured and integrated into
remanufacturing processes and go-
to-market strategies. This will ensure
continued success and growth for both
OEMs and independent remanufacturers.
The recipe for achieving this success
is a well-defined partnership between
an OEM and an independent. However,
those alliances must begin with a
comprehensive, well-defined due
diligence process that looks to optimise
the strengths of the prospective partners
while minimising the risk of a poor
strategic or cultural fit.
It goes without saying that there
are significant opportunities in
remanufacturing for companies,
investors, and, most importantly,
for society – and not just in the
automotive sector. Recycling, reuse,
and remanufacture, according to a 2014
Ellen MacArthur Foundation report,
Towards a Circular Economy, could
generate more than $1 trillion for the
global economy by 2025, and create
100,000 new jobs in the next five years.
At the same time, remanufacturing can
help preserve a global environment
and biosphere increasingly suffering
from the depredations of the old linear
manufacturing model, characterised by
high energy usage, waste, and pollution.
In the automotive sector, reaping the
benefits of remanufacturing will take
time, effort and a reordering of mindsets.
But it will be well worth it.
A carefully crafted merger or
acquisition, partnership or joint
operating agreement, with the strategic
intent clearly defined for both parties,
can provide stronger solutions, more
quickly, to the remanufacturing industry.
This will generate enhanced revenue and
profits for all stakeholders, and provide
value throughout the supply chain.
➤
“There are significant
opportunities in
remanufacturing for
companies, investors,
and, most importantly,
for society” Ramesh Subramoniam (immediately below)
and Mike Rayne are both MD, corporate finance/
performance improvement, FTI Consulting
• A version of this article appeared
in FTI Journal (www.ftijournal.com)
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40. CIRCULAR ECONOMY
40 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
T
he concept of the circular
economy has gained traction
in industry and policy as a
pathway to deliver resource
efficiency. While not a new concept,
its widespread appeal has never been
greater. Sharon Prendeville and Nancy
Bocken, both affiliated with TU Delft,
have written a paper showing the
interplay between business models
and design strategy in the context
of remanufacturing, illustrating
how both are interdependent and
complementary. The paper aims
to build understanding of design
for remanufacturing activities
through a real-world example of a
business seeking to transition to
remanufacturing.
One driver for the interest in
circularity is the increasing awareness
of resource scarcity as a key risk
to business competitiveness and
the potential impact this may have
on businesses in the long-term.
In the UK alone, market value of
remanufacturing activities is estimated
to be worth up to £5.4 billion,
excluding the economic benefits of
jobs created. Reman offers a means
to retain control of products and
materials throughout the product
life cycle and therein, through
remanufacturing, businesses can
insulate against material price shocks
and future material scarcity issues.
Reman has therefore been identified
as a ’sleeping giant’ whose potential,
once tapped, can fast-track companies
to increased profits, while in parallel,
realising circular practices within
industrial systems.
A real-world pilot
The real-world example described
in the paper came from a company
with clear goals about what it wanted
to achieve from the application of
remanufacturing. The pilot study
focused on an office task chair,
typically sold to corporate clients on
the European market since
1999. In particular, the
pilot activity identified
the following three
needs: pre-assessment
of products at the
customer’s site to
control the quantity
of returning products,
a product evaluation
framework to support
the remanufacturing
team with on-site
evaluations, and a
definition of end-
of-life-strategies for
components that are
replaced. The high-
end office task chair
was chosen because
it has high residual
value, a resilient design,
easily replaceable parts,
good supply and good
demand.
The driving seat
Design can unlock the sleeping giant of profit for automotive reman:
four key areas from a chair assembly pilot study explain how
“It became clear that,
typically, three of the
12 components would
need replacing: in most
cases, these were the
same three”
41. CIRCULAR ECONOMY
ReMaTecNews 41Email your comments and stories to editorial@rematecnews.com
Four key areas
The selected chair was not originally
designed for remanufacturing but
had been identified as suitable by
the company – it was also in part
chosen because of the availability of
thousands of office task chairs that
had been returned by a customer.
The four key areas of the pilot study
were:
• product evaluation
• environmental assessment
• commercial research
• product take-back activity
Once returned, the various
components of the chairs were
evaluated using a visual and
mechanical inspection. Every
component of the product was
then described or given a ‘pass’ or
‘fail’. Through these tests, it became
clear that, typically, three of the 12
components would need replacing:
in most cases, these were the same
three components. Only on very rare
occasions would another component
need to be addressed.
Reducing environmental impacts
The company set out to achieve a
four-fold reduction of environmental
impacts through remanufacturing
the product. The findings of the
assessment indicated that minimising
the material cost of remanufacturing
means avoiding the replacement
of as many parts as possible - and
particularly any large components.
Using polypropylene in place of
polyamide in key parts lowers the
overall impact of the product, and
maximising recycled content in all
parts - but particularly in any steel
parts - would be beneficial. The
secondary market value of the product
was identified through an analysis
of resale of similar products through
channels such as eBay and second-
hand dealers. The findings were
positive and the company proposed
that the price could be increased
due to brand value associated with
being sold by the original equipment
manufacturer.
Identifying key barriers
Prendeville and Bocken’s paper
offers a multi-strategy approach
which includes a supportive
environmental analysis of the product,
in combination with an exploration of
design and business model strategies.
It provides a simple but structured
framework of questions to investigate
remanufacturing.
For example, one barrier to reman
for a company might be the fear
of future legal and financial costs,
such as the risk of accounting for
longer warranties – but the case
company overcame this by more
resilient product design through the
development of durable products and
the evaluation of returned products.
For companies interested in the
possibilities of reman – in whatever
sector - and who want to learn how to
identify key barriers, this paper is a
useful tool.
• The complete text can be found at:
http://www.io.tudelft.nl
/fileadmin/Faculteit/IO/Actueel/
Agenda /2015/50/Springer
_Template_Prendevill_2015.pdf
The benefits of - and
barriers to - eco-design
Remanufacturing is often talked
about in the same breath as eco-
design. Eco-design is a strategic
approach to designing products
to reduce environmental impacts
across the whole product life cycle.
In doing so, layers of waste can be
identified but also layers of value.
Prendeville and Bocken’s literature
review shows that eco-design also
has barriers: typical examples of
these are cost and lack of resources
and knowledge. Some authors
propose that cultural aspects such
as poor management commitment,
lack of supply chain integration,
supply chain relationships and
employee attitudes as well as
limited demand-side pull are
key factors in determining why
companies fail to act.
42. PRODUCTS
42 www.ReMaTec.com Email your comments and stories to editorial@rematecnews.com
Gates warranty covers more engine parts
Gates has identified engine
remanufacturers in both
the passenger car and
the heavy-duty markets as
installers likely to benefit
from extensions to its
range of all-in-one drive belt
solutions in single boxes.
“Reputable reman specialists
always fit new belts and
tensioners on the auxiliary
belt drive systems (ABDS)
and synchronous belt drive
systems (SBDS), but some of
our latest all-in-one solutions
for passenger cars also
include belts, water pumps
and thermostats,” says the
company. It believes the
packages are ideal for engine
remanufacturers because the
warranty that covers the belts
and the tensioners extends
to every part in the Gates
box. This means the kits
provide additional assurance
over a wider range of engine
parts from a single supplier,
as well as making it easier
to order the correct parts for
the relevant engines every
time. The company believes
other key benefits are further
credibility to the quality of
the reman engine, as well as
additional assurance to the
customer who could save a
lot of inspection downtime
in the event of a subsequent
issue with the engine.
Rolls-Royce wins Transdev reman deal
Rolls-Royce has announced one of
the biggest deals in its history to
remanufacture around 400 MTU
PowerPacks for Transdev Group,
the largest private local transport
operator in the German rail and bus
network. The deal runs from 2017
to 2021. “The remanufactured
PowerPacks are not just more
affordable than new ones,” said
Denise Kurtulus, director of sales
services at MTU. “The ability to get
fast delivery of exchange PowerPacks
also means we
can keep our
customers’
vehicle
downtime
extremely low.”
After the reman
process,
MTU said the
PowerPacks
are in an as-new
condition, capable
of 18,000 hours (approximately
720,000 km) of operation. For
some series, MTU is able to provide
exchange PowerPacks (so-called
swing units) before the drive
systems are removed, thereby
enabling the railcars to go back
into service more quickly. Transdev
uses the MTU Series 183 and 1800
PowerPacks in its Alstom Lint and
Bombardier Talent vehicles.
NEW NAME FOR KNORR-BREMSE
Knorr-Bremse has changed the name of its
reman brand. Launched at Automechanika
Frankfurt, the name ‘EconX‘ replaces the
previous term ‘Genuine Remanufactured
Exchange Parts’. The company says this
sums up the products’ qualities: “Original,
value-based and sustainable.” The
company revealed the latest additions to
the EconX portfolio, including an electronic
clutch servo. “As the world’s biggest
trade fair for the automotive aftermarket,
Automechanika is an appropriate
venue for the launch of our new brand,”
said Wolfgang Krinner, member of the
management board of Knorr-Bremse
Commercial Vehicle Systems. “Knorr-
Bremse TruckServices understands
customers’ needs and can deliver a wide
range of reliable, economical aftermarket
products and services. As well as the
usual Knorr-Bremse OEM products,
we also supply many remanufactured
ones for value-based repair of older
vehicles.” Reman products will have “a life
expectancy appropriate for the age of the
vehicle concerned”, the company added.
43. ReMaTecNews 43Email your comments and stories to editorial@rematecnews.com
Facing future challenges
Back in April, at the APRA European
Remanufacturing Symposium in
Birmingham, discussions focused on the
status of the European remanufacturing
industry as well as future challenges to
market participants and to APRA itself.
That some of these discussions were
extremely contentious is testimony to
the fact that the entire reman industry
- as well as the association - is in a
transitional phase.
The European reman market is
changing. On the one hand, corporate
successors, acquisitions, mergers and
investments are changing the face of
the industry – and with it the member
structure of the APRA. On the other hand,
technology developments will define
the qualification profile of employees in
remanufacturing and service in a new way
and will demand increasing and short-
term investments.
This can be seen as an opportunity
as well as a potential threat. Those
market participants who can meet these
requirements and implement appropriate
solutions can substantially increase their
market share - not only in the automotive
business, but in particular also in the
off-highway and the capital goods sector.
On the political decision-making level,
the ‘circular economy’ is being promoted,
specifications are being drawn up and
legislative initiatives are being submitted.
Our association must actively be
engaged in political lobbying - not only
to specify political orientation, but also
to prevent incorrect decisions on policy
which would have disastrous effects on
the international reman business.
At the same time, all APRA board
members agree that the top priority must
be to put the interests of small and
medium-sized enterprise (SME) members
stronger in the foreground: these
member companies (mainly managed by
their owners) represent the broad base of
APRA and are the backbone of the entire
industry. The needs and expectations of
SMEs have been neglected in the past
and will in the future see much more
consideration.
New goals for APRA
In Birmingham it was decided to define
the goals for APRA Europe in the next 12-
18 months. The critical success factors
to reach this goal have to be identified,
the strategic basis for the alignment
of APRA Europe Division on the future
political, technological and economic
challenges must be developed and finally
a detailed implementation plan must be
put together.
All APRA board members work
voluntarily and their first priority, of
course, is to their own businesses.
That means the entire board requires
the active support of all association
members – for example, in press
activities, attracting new members,
participation in events, transmission of
market and technology information or
participation in projects.
One thing is certain: together APRA
Europe has an excellent chance to
establish itself as the European
remanufacturing association and to
ensure continued positive development
of the remanufacturing industry in
Europe.
Changing faces
Peter Bartel, chairman of APRA
Europe for more than four years, has
transformed the association to a
widely-recognized remanufacturing
specialist and an important partner
of the major automobile associations
through countless successful
projects on the European political
scene. Increased management
responsibilities mean that he has no
longer the necessary time to dedicate
to APRA Europe and therefore he
has vacated the chairman position.
However, he will continue to work
actively as a member of the board on
current projects.
Reman remains at the centre
of the circular economy
“The entire board requires
the active support of all
association members”
The remanufacturing industry is in transition – and so is APRA itself. But reman’s place at the
centre of the circular economy remains vital and smaller companies need more consideration,
explains APRA Europe chairman Carsten Bücker
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