Remanufacturing has many different value chain business opportunities

Kirjoittanut Sample HubSpot User | Jan 18, 2018 10:00:00 PM

- Remanufacturing means manufacturing again the discarded products or components so that their functionality, quality and warranty match those of new products. Remanufacturing can respond to growing sustainability requirements for production, save materials and energy, and reduce waste, highlights Kari Poikela, leader of the Circular Economy Centre.

Remanufacturing has initially developed based on economic benefits. Remanufactured products can be sold at a cheaper price, but it is possible to obtain a relatively higher profit on them.

“Design for remanufacturing, or recyclability, should be considered at the design stage. For example, Caterpillar has reached 90% savings in energy and materials with remanufacturing. It should also be noted that remanufacturing has many different value chain business opportunities, such as material and product banks, services and logistics,” says Kari Poikela.

Remanufacturing can be considered the best form of recycling, but transition to remanufacturing means radical rethinking of physical products and production and service systems. Although there is a lot of potential for material and cost savings, remanufacturing is generally not yet known in Finland.

“The outcome of the day is that companies have a clearer understanding of what is required to start remanufacturing and what concrete benefits it offers.
At the same time, participants were informed of the type of development partners that the Circular Economy Centre and VTT Technical Research Centre of Finland Ltd are in this field,” Poikela concludes.