Rematec News | Hello Guangzhou!

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REMANUFACTURING INTERNATIONAL

August/September 2019

NETWORK | KNOWLEDGE | BUSINESS

Hello Guangzhou!

It's here: the first Rematec Asia

Also Highlights of Rematec Amsterdam Who won the RotY 2019 Awards?

OEMs finally open up about reman

30 Is Non-Destructive Cleaning Critical?

Remanufacturing Starts with ARMEX The ďŹ rst step in remanufacturing and rebuilding of engines, transmissions and other components is cleaning. ARMEX has answered the problem of ineffective and time-consuming cleaning processes.

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coatings and grime all in one-step. Furthermore, ARMEX will never damage what you are cleaning, reducing rejected cores and components. If you want to improve your cleaning processes all while saving time and resources ARMEX is the only choice.

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Stop by our booth #08.373 at ReMaTec 2019 ARMEX and ARM & HAMMER are trademarks of Church & Dwight Co., Inc.

EDITORIAL

‘Finally, OEMs are talking openly about reman. It feels like a breakthrough moment’

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ematec Asia… Just saying the words has a certain thrill to it. Only a couple of months ago, the international remanufacturing community descended on Amsterdam for the 10th edition of Rematec.

Now, Guangzhou will be the host for the first Rematec show in China (see preview from p7). It promises to be an insightful look at the challenges and opportunities of operating in this vast market.

Back in Europe, Rematec 2019 was packed full of interest. Our report starts on p16, and one clear theme this year was the increasing visibility of original equipment manufacturers in reman. We’ve always known about this, of course – but now they are openly talking

about reman. It feels like a breakthrough moment: the keynote speech by Dick Cruslock, reman boss at Volvo Cars, was the first time an OEM executive had presented at Rematec.

No wonder the session was so well attended, with a stream of intelligent – and occasionally provocative - questions from the audience, all answered with honest courtesy. Rematec’s OEM-Reman Network – making its debut at Rematec – also provided a conduit between the two groups behind closed doors. It is a theme that Rematec News will return to frequently over the coming months.

In yet another first, the European Remanufacturing Council held its annual meeting at Rematec. Its opening address was given by Janez Potoþnik, co-chair of the United Nations Environment Programme’s International Resource Panel (Viewpoint, p14).

Among a number of mind-boggling statistics, he pointed out that China used more cement in the years 2011-13 than the US did in the entire 20th century. It is a country moving at a rapid rate.

Finally, you may notice that the Rematec branding has been refreshed – remanufactured, you might say - to highlight our close relationship to the circular economy. In part this reflects the key role remanufacturing will play as the need to conserve the earth’s finite resources becomes widely understood. Recycling, as Potoþnik points out, is the ‘worst of the good’. By the time you recycle, the material is lost. The damage is already done. Policymakers from Brussels to Beijing already get it: momentum is building behind the environmental and economic sense of reman.

Published by RAI Amsterdam B.V. P.O. Box 77777, 1070 MS Amsterdam The Netherlands In association with Route2Market Editor Adam Hill: ahill@ropl.com Phone: +44 (0)7931 502947 US correspondent Denise Rondini: drondini@gmail.com Asia-Pacific correspondent Tim Maughan: tim@britishjournalistinjapan.com Route One Publishing Managing Director Andrew Barriball: abarriball@ropl.com ReMaTecNews: advertising manager Sara Clark Phone: +44 (0)1732 445302 sara.clark@talkmediasales.co.uk Contributors in this issue Rogier Bos, Georgios Chatzinikolaou, Darren Johnson, Daniel Koehler, Janez Potoþnik, Denise Rondini, Fernand Weiland Marketing Communications & PR Evelien Feijen: e.feijen@rai.nl Phone: +31 (0)20 54915 81 Rematec & Rematec Asia: sales manager Yorien de Ruijter Phone: +31 (0)20 5493075 Fax: +31 (0)20 5491889 advertising@rematecnews.com Publisher Evelien Feijen: (responsible under Dutch Press Law) e.feijen@rai.nl Design, Production & Printing Route One Publishing Ltd Copyright RAI Amsterdam, Amsterdam, The Netherlands Reproduction No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopied, or otherwise, without the prior written permission of the publisher, RAI Amsterdam B.V. Subscription magazine & eNewsletter www.rematec.com Change of address info@rematecnews.com ReMaTecNews online www.rematec.com/news Circulation Approx. 12,000 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 ahill@ropl.com

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Rematec News

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CONTENTS

Remanufacturer of the Year 2019 Awards So who won the most coveted trophies in reman - and why?

Rematec 2019: show report Three days of sales, negotiations, presentations, networking - and, yes, perhaps the odd drink in Amsterdam*

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COVER STORY Hello Guangzhou!

The first-ever Rematec Asia show is about to open its doors in China - and there’s a lot to see

Necessity is the mother of reinvention

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Ellen MacArthur Foundation releases ‘Better than New’ reman white paper; RIC launches accreditation programme; and EU banks set up circular economy fund

How a call from UPS saw Reviva adding gas engines to its reman business

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News

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It’s up to turbocharger manufacturers to maintain quality standards, insists Melett

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The quality guarantee

Good to go APRA Europe’s first-ever general assembly saw the board given members’ approval to advance the business

Viewpoint ‘Economic growth must be decoupled from environmental impact - and reman can help’

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Ensuring viability

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Automation will be vital for reman, explains Fernand Weiland in an exclusive extract from his new book

Diary From China to the US, with stop-offs in the Czech Republic, Germany and France - there’s a date for every globe-trotting reman professional here

*Size wasn’t everything at Rematec 2019

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Core competency Core brokers play a big role in the circular economy and should get the credit they deserve, says FIRM

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Rematec News

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NEWS DIGEST

Wind turbine reman ‘needs standardisation’ RIC LAUNCHES ACCREDITATION PROGRAMME

BINNIG TO LEAVE RHEINMETALL Horst Binnig, chairman of Rheinmetall Automotive, is to leave the company at the end of the year for ‘personal reasons’. Binnig (pictured), who is 60, will also give up his role on the executive board of holding company Rheinmetall Group. He joined in 1999 and was instrumental in setting up the group’s second major joint venture with SAIC (Shanghai Automotive Industry Corporation) in China. In a statement, the company said: “[We] regret his decision as much as we respect it.”

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Council. “Definitely. The scale is different, but with OEMs stepping back into the market, there is a direct parallel.” Gearboxes and drives are already being

Banks in the European Union n nion have set up a €10 billion investment fund to promote o ote the circular economy. The e European Investment Bank n nk has partnered with Bank Gospodarstwa Krajowego o (Poland), Caisse des Depots pots et Consignations (France), ) ), Cassa Depositi e Prestiti (Italy), Instituto to de de Crédito Créd Cr édiito Oficial (Spain) and Kreditanstalt für Wiederaufbau (Germany) to pledge €10 billion “to accelerate the transition to a sustainable and circular economy”. Over the next five years, money will be on offer to develop projects “that will decrease pollution, maximize resource efficiency and spur innovation”. The banks say they will work together to share experience and lend to municipalities, looking for companies which have ideas around sustainability.

remanufactured – but given that wind power is about supplying green energy, it makes no sense to send a turbine to landfill after 20-30 years, the meeting heard.

Ellen MacArthur releases reman white paper

EU banks €10bn 0 CE 0bn CE fund fund © calyps calypsoA calypsoArt oArt | Dreamstime Dreamstime.com com

The Remanufacturing Industries Council (RIC) has announced a new accreditation programme for companies to show that their reman processes conform to RIC001.12016: Specifications for the Process of Remanufacturing.

“Adherence to the programme will provide remanufacturers with a recognition of competency and show their commitment to the reman industry,” said Paul Adamson, RIC director and chief revenue officer for America’s Remanufacturing Company. RIC001.1-2016 is approved by the American National Standards Institute. RIC will launch the programme at the RIC-RIT World Remanufacturing Conference in October. A full report on the event will appear in Rematec News.

The nascent world of reman in the wind energy sector needs certification and standardisation – that was among the key talking points from the first-ever International Forum on Wind Turbine Remanufacturing.

Held at Rematec 2019 in Amsterdam, the event brought together experts from the sector to discuss the challenges and opportunities. “Can we learn from the automotive sector?” asked David Fitzsimons, director of the European Remanufacturing

Mahle adds new business unit

A white paper on remanufacturing, called ‘Better Than New’, has been released by the Ellen MacArthur Foundation.

It makes a variety of recommendations, including asking policymakers to align international legal definitions of reman, introduce specific reman targets in waste legislation to encourage the remanufacture of components, and to eliminate regulatory and trade barriers to reman products. The paper also encourages businesses to reconfigure supply chains to enable product take-back and to incentivise staff to reward value retention.

Mahle Group is creating a new business unit for electronics and mechatronics as part of a move to embrace new powertrain technologies. “In taking this step, we’re actively reinforcing our innovative strength in the field of alternative drives,” says Heinz Junker, chairman of Mahle’s supervisory board. Mahle has grouped its electrics and electronics activities in its mechatronics division, which has seen significant growth in the last few years. “By transferring these activities into a business unit and combining it with the product areas of compressors and pumps for strategic purposes, we are focusing all our efforts on further growth and the ongoing development of our product portfolio for the mobility of the future,” adds Mahle CEO Jörg Stratmann.

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PREVIEW

© | Dreamstime.com

East meets west

Guangzhou is the host of the first Rematec Asia show in October

Picture: Sinomachint

The first-ever Rematec Asia show is nearly here: Guangzhou in China will host the event, which runs from 11-13 October – and it promises to offer something for everyone in remanufacturing

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he pace of China’s economic growth has meant that car sales in the country have increased enormously. This is, of course, of great interest to remanufacturers – but there are other factors which make the Chinese market attractive: after two years the warranty of a car expires - and after five years the demand of maintenance appears. In 2015, a total fleet of 93.2 million cars ran out of warranty. In the coming years the demand for auto parts will increase, and this is a major opportunity for the reman sector.

In October, Rematec will open its doors in Guangzhou, China, for the first Rematec Asia show. The perfect opportunity to make contacts and discover trends, there will be over 95 exhibitors (around 15 of which are international) exhibiting their reman products and capabilities at the Guangzhou Poly World Trade Center.

Rematec Asia is to be co-located with Auto Aftermarket Guangzhou (AAG), an established aftermarket trade show with over 20,000 Chinese aftermarket professionals as visitors.

As well as the opportunity to see a variety of reman products and services, visitors will be able to find out about the latest trends in remanufacturing, including on all-important policy developments, as Rematec Asia is to host a large Remanufacturing Forum.

This high-level gathering, which features

a simultaneous translation service, will attract officials and guests from China’s central government, the National Development and Reform Commission and the National Key Laboratory for Remanufacturing, the Beijing//Hejian national remanufacturing excellence centre. Chinese vehicle manufacturers (such as SAIC Motor, Dongfeng, FAW, Geely, Beijing Automotive Group, Brilliance Auto Group, Guangzhou Automobile Group, Great Wall and BYD) will send their aftermarket branches to Rematec Asia to learn about the benefits of remanufacturing.

Who is going to be there?

Current international exhibitors: Encory: Germany ATC Drivetrain: US MRT Engines: Netherlands MFC: Taiwan Emmetec: Italy MERA – The Association for Sustainable Manufacturing: US MSG: Ukraine Alec: Germany IM Group: Australia JSC Kinergo: Lithuania GSL Materials: Malaysia AG Cores: Italy Rematec/Rematec News: Netherlands

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A forum for reman On Saturday 12 October, a Remanufacturing Forum will be introduced at Rematec Asia. Here, presentations will be given on topics such as: China remanufacturing market analysis, Global value of remanufacturing, International trade of remanufacturing, Innovation development of reman and how to enter China’s remanufacturing market. The forum will take place from 09:30 – 18:00 and is open to visitors from AAG and Rematec Asia.

During the forum some important Chinese industry representatives will be present: Justin Yifu Lin is a Chinese economist with a masters degree in political economy and a PhD in economics from the University of Chicago, who actively supports industries that contribute to growth.

Li Jun is a professor at Tsinghua University, an academician of the Chinese Academy of Engineering and chairman of China’s Society of Automotive Engineers.

He Guangyuan is the former minister of the Ministry of Machinery Industry.

Rematec News

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PREVIEW

Curtain goes up on a new theatre

The Rematec Theatre in Guangzhou promises to be a major attraction of the show

The Rematec Theatre will be one of the go-to areas of Rematec Asia – a place in which views can be exchanged and new ideas presented by some of the leading names in the remanufacturing industry Pictures: Sinomachint from AAG 2018

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Thijs Jasink, Alec

he Rematec Theatre has been one of the biggest draws of the past two Rematec Amsterdam shows – a great place to hear about the latest ideas and challenges to the industry. Following the success of the concept, there will be a Rematec Theatre at the new show in Guangzhou too. It will be the venue for a host of presentations and discussions from Chinese national and foreign remanufacturing experts, ensuring that visitors are fully up to speed with domestic and international issues. The programme of events will run from Friday 11 October till Sunday 13 October, and the theatre is open to all visitors to AAG and Rematec Asia. Some highlights include:

Thijs Jasink, managing director of Munich-based Alec, aims to convince people of the benefits of re-using electronic components. Because of his commitment to the industry he was awarded the Rematec Best Reman Ambassador 2018. During Rematec Asia he will share his thoughts and experience in the theatre.

John Chalifoux, MERA The remanufacturing industry is often not recognised by the end user. The popularity of the industry is growing in small steps – but how could marketing and promotion be used to speed this up? John Chalifoux will present tips and tricks on reman marketing in the Rematec Theatre.

NSF

Jean-Paul Borsten, De Sutter Engine Company

NSF launched its remanufacturing certification programme in China in 2018 and six remanufacturers have joined.

In the theatre, NSF will reward more remanufacturers with its prestigious certification. NSF will keep working with China Auto Parts Remanufacturing Association and Lumai.com to promote auto parts remanufacturers’ acceptance with insurers and to bring Chinese auto parts remanufacturers to the US and Australia.

Jean-Paul Borsten is CEO and owner of Dutch firm De Sutter, a family business established in 1917. For generations, De Sutter has been rebuilding engines for trucks, passenger cars and heavy duty appliances, and has been very active in the export of reman engines and engine parts. De Sutter prides itself on a true entrepreneurial spirit, and is used to working with both the independent market as well as licensed original equipment (OE) players.

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PREVIEW

A formal introduction There are a few familiar names at Rematec Asia – as well as a number which will be less well-known in parts of the industry. Here is an introduction to just two of the companies you will find in Guangzhou…

Emmetec Emmetec is a world-leading company specialising in electric and hydraulic power steering, shock absorbers, brake boosters, diagnostic equipment, spare parts, technical training and database updating. Its EPS Division handles electric power steering columns, racks and pumps, and services include torque and position sensors, transistors for electric motors, and CPU and motor relays. Replying to strong market demand, where vehicles with EPS are constantly increasing, Emmetec released a range of professional tools for diagnosis and simulation. Vinci is an innovative patented test bench that enables testing of the EPS-C (electric column), the EPS-P (electric pump) and the EPA-R (electric rack) before and after the repair process. This system, controlled by a computer, allows simulation of several driving conditions with different speeds and loads, while the fully automatic version of the bench makes a completely motorised test sequence. The Vinci range is released as standalone independent machines, as well as modules, controlled by a control pulpit. They are equipped with a wide range of car model data, and an advanced remote assistance system means the model list can be periodically updated to supply further customer support. Emmetec’s engineers are available for professional classes on test benches at its R&D headquarters in Ternate (Varese, Italy).

For further information visit www.emmetec.com

Encory Since its foundation in late 2016, Encory has built a diverse portfolio of solutions for the automotive aftermarket in numerous countries across the globe. A joint venture between vehicle manufacturer BMW and environmental services company Alba Group, Encory specialises in developing reverse logistics solutions with the supporting

software developments as well as reman parts portfolios. It has built a global reverse logistics network with partners to create closed loops and enable remanufacturing: with 1,800 daily users of the dealer return platform in 30 countries as well as three reverse logistics operations warehouses – known as ReLife Points - in Europe today and one planned in China by the end of 2019, it aims to ensure continuous core availability in addition to the management of other return types such as warranties, claims and general part returns. Encory’s core sorting software provides an identification and standardised quality evaluation process, thereby reducing lead times, minimising mistakes during the sorting process and ensuring a closed loop for cores in a

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sustainable manner. Its dealer return platform for reverse logistics saves costs and time for dealers but also offers them more transparency and simplicity in their daily work, the company insists.

The company’s aim is to allow customers to adjust their aftersales parts portfolio to the current aftermarket environment. Its IT solutions are designed to provide a fully transparent aftersales supply chain including core deposit systems and active management of return quotas, with reverse logistics management enabling firms to focus on forward parts sales while Encory manages everything else.

For further information visit www.encory.com or contact businessdevelopment@encory.com Rematec News

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PREVIEW

Rematec Asia visitors will be able to see the operation at Guangzhou Huadu Worldwide Transmission

No substitute for first-hand experience Rematec Asia is about building contacts and knowledge. A programme of site visits means that visitors will be able to experience first-hand exactly what goes on in China’s remanufacturing industry today

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ne particularly interesting aspect of Rematec Asia’s programme is the excursions to local remanufacturing companies. These are intended to give international delegates the opportunity to get a real look at how remanufacturing is done in China. These companies will be included in the tour:

Guangzhou Kuayue Autoparts Guangzhou Kuayue Auto Parts and Accessories Industry Co is a privately owned high-tech enterprise specialising in manufacturing and reproducing hydraulic and electronic control power steering for various vehicles. The firm is part of the Steering Commission of China Association of Automobile Manufacturers and participated in the official drafting of

Guangzhou Kuayue Autoparts is open to visitors from the show

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China’s national auto parts manufacturing standards. As the pilot enterprise in patent operation in Guangzhou Huadu District, the company has also applied for a declaration as a pilot enterprise in automobile components reproduction, which has been approved by Guangzhou municipal government and Guangdong provincial government, and is now under the examination and approval procedures of the Chinese government.

Guangzhou Kuayue was established in August 2001, with a cooperate culture of ‘people-oriented, cooperation, selfdiscipline and innovation’.

Guangzhou Huadu Worldwide Transmission Located in Guangzhou Huadu District, the firm was founded in 1998 and was one of the first 14 companies included in the National Development and Reform Commission (NDRC)’s remanufacturing pilot programme in 2008. The company provides services around transmission boxes such as testing, maintenance, remanufacturing, tech support and training. Huadu Worldwide owns 10 repair centres, three service centres and one factory that produces 35,000 remanufactured units per year. The company has established effective channels for collection and distribution of used and remanufactured transmission boxes. It has been authorised by more than 30 major auto companies, including GM, JATCO and PSA, to provide maintenance services through the 4S dealership system, a widespread ‘onestop shop’ for sales, service, spare parts

and surveys. The company collects 60% of its total second-hand transmission boxes through 4S stores, with the rest coming from repair shops, consumers and used auto parts dealerships.

Huadu is one of the few companies qualified to receive the ‘Trade Old for Remanufactured’ subsidy, a project led by NDRC and the State Council since 2013.

The scheme is funded by the government and grants a 10% discount to consumers who trade in their old transmission boxes for a remanufactured one.

Huadu Xin Chentian Auto Parts Co Huadu Xin Chentian operates the brand new Guangzhou core market, which was opened in June 2019. Over 500 core traders are located in the Huadu economic development zone between Guangzhou city centre and Baiyun (CAN) Airport. The core market has a broad range of automotive core including engines, automatic transmissions, starters, generators, air compressors, high-pressure oil pumps, turbochargers, pumps, steering gears, booster pumps and brake calipers. Guangzhou and the city of Hejian are appointed by central government to act as the main core hubs for Chinese remanufacturing.

There are multiple changes happening in the Chinese reman business - now is the time to get involved in the Chinese reman sector and to meet new business partners.

For more information, please contact Yorien de Ruijter at y.d.ruijter@rai.nl or go to www.rematec.com/asia

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PREVIEW

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Around Guangzhou Guangzhou (formerly referred to as Canton) is China’s third-largest city after Shanghai and Beijing, with an estimated population of 14.5 million inhabitants. The administrative capital of the Guangdong province, the city is situated on the banks of the Pearl River, close to Hong Kong, Macau

and Shenzen. Guangzhou has a large automotive manufacturing cluster. It is home to Guangzhou Automobile Group Co (GAC), a large Chinese vehicle manufacturer (annual prediction over 29 million units) which has joint ventures with Fiat Chrysler, Honda, Mitsubishi and Toyota. GAC’s vehicles

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are sold under its own local brands such as Aion, Everus, Gonow, Liebao and Trumpchi. Visitors to Rematec Asia 2019 are in for a culinary treat too: Guangzhou is also famous for its Cantonese cuisine.

Touristic highlights are the Canton Tower, Yuyin Garden and Sun Yat-sen Memorial Hall.

About Rematec Asia Rematec Asia is a joint project by Rematec and Rematec News owner RAI Amsterdam, China Parts Remanufacturers Association (CPRA) and China National Machinery Industry International Co (Sinomachint). The three parties have initiated the new automotive parts remanufacturing show within AAG, a large established annual show at the Guangzhou World Trade Center, with approximately 1,200 exhibitors. Sinomachint has a strong reputation as a powerful exhibition organiser in the Chinese aftermarket, being the driving force behind not only AAG but Automechanika Shanghai (a joint venture with Messe Frankfurt). CPRA forms the reman chapter of the China Association of Automobile Manufacturing.

Its membership consists of licensed parts remanufacturing companies, whose business includes rotating electrics, engines, turbochargers and automatic transmissions.

Rematec News

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REMANUFACTURER OF THE YEAR 2019

The Remanufacturer of the Year Awards are the most prestigious honours in reman.

The list of people who have won them is a remarkable roll-call of the industry’s talent – and 2019’s winners continue that proud tradition, writes Adam Hill

here is no higher accolade than the Remanufacturer of the Year (RotY) Awards. From the scheme’s inception in 2005 up until 2016, the Remanufacturer of the Year was given to one person or business that had served automotive remanufacturing with particular distinction.

In 2017, in an unprecedented move, the RotY Award was split between two people for their work on international lobbying for the remanufacturing industry: Wabco’s Salvador Munoz Zarate (who sadly passed away earlier this year) and Peter Bartel, engineering director at Circular Economy Solutions.

In 2018 came the most radical change in RotY’s history: rather than presenting a single award, the decision was taken to split the award into three, to open up RotY to people who might previously have thought it was out of their reach, and to reward companies and people demonstrating a range of skills

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At the opening ceremony of Rematec 2019 in Amsterdam, the RotY awards were handed out by three distinguished former winners.

The award for the category Best Reman Process Optimisation was presented by Jens Lindholm, CEO of PowerMaxx. He won the very first RotY Award, back in 2005 while he worked for Holger Christiansen.

The award for Best Reman Business Innovation was given by Peter Bartel, who also said a few moving words about Salvador’s contribution to the industry.

The trophy for Best Reman Ambassador was handed out by Thijs Jasink, chief operating officer at Alec, who was last year’s winner.

As ever, there was some very stiff competition for the trophies this year. Rematec and Rematec News congratulate the winners – and sincerely thank all the companies which made the effort to enter.

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REMANUFACTURER OF THE YEAR 2019

RottY 201 19: the e winn ners

BES ST REMAN PROCE ESS OPT TIMISA ATION Knorr-Bremse Knorr-Bremse’s fully-digitalised core return and sorting process satisfies customer and remanufacturing process demands: operators now use touchscreens to identify and sort cores, with 1,500 part numbers handled, in a system which is integrated into SAP with a real-time view of all sorting data and stock. The judges were impressed by a complete process which allows a full track and trace from the customer’s pick-up request, goods receipt and core identification up to surcharge refund booking.

BES ST REMAN INNOV VATION N CRP Industries CRP Industries is the parent company of Atlantic Automotive Enterprises, a remanufacturer of electrical power steering (EPS) systems.

Its introduction of lean principles and semi-automation to its supply chain management system - often a challenging task to perform – impressed the judges. These innovations have been implemented in most of the company’s reman process steps and have been shown to have a really positive effect on efficiency, supporting an aggressive EPS launch plan.

ABOVVE: Scott Shea (left), chief operating officer, and Jack Bordeau, director of remanufacturing and steering, CRP Industries

“W We are e very y pleased abo out this worldw wideren nown ned aw ward d: with the e RottY Aw ward 2019,, the e jury y has s reco ognise ed ourr inittiative es in the rem manu ufactu uring g secttor - re eman n has s been n firm mly em mbedd ded in n Kno orrBre emse e’s aftterma arkett stra ategy y for the past six yea ars”

“Ab bsolu utely this is a big dea al: th he aw ward came e as a com mplette su urpris se!

We e’re not be ehem moths s – ou ur sm mall, famiilyow wned busin ness wins s this s aw ward. We’lll be ablle to mark ket what tha at me eans for us”

Daniel Koehler, Knorr-Bremse

Scott Shea, CRP Industries

BES ST REM MAN AMBAS SSADO OR Fernand Weiland, FJW Consulting A co-founder of the ReMaTec exhibition, Fernand Weiland (above left) has been in management positions responsible for aftermarket and remanufacturing operations over the last 30 years or so with companies including Bendix, Lucas and TRW. In 1989 he founded APRA’s European division and served as chairman for more than 20 years.

From 1990 to 2012 he organised a considerable number of APRA forums, workshops and exhibitions across Europe – and as a consultant he has published many articles and several books on reman. He has worked tirelessly to exchange knowledge and promote remanufacturing to businesses and policymakers – and the industry has no better friend than Fernand.

“It is a great hono our for me and a grea at ple easurre to receiv ve thiis pre estigiious Rema atec aw ward. Durin ng my y lon ng carreer I have e got a lot of satisffactio on fro om working g with h the e rem man fam mily and to oday is on ne of the bigges st eve ents for me e – if not th he biggestt” Fernand Weiland, FJW Consulting

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Rematec News

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NOTES & COMMENT

Rematec News

VIEWPOINT

“People are strange: we want changes but unfortunately we don’t want to change”

Janez Potočnik

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roduct value retention is a bit more complex than just remanufacturing but to put it in context is helpful. The story starts with one of the biggest problems of all: a quote from Jim Morrison of The Doors said; ‘People are strange.’ The real essence of that is that we want changes but unfortunately we don’t want to change. What are the major things we have to deal with? In the middle of the century there will be nine billion people on the planet.

The richest 1% is more wealthy than the rest of the world; 800 million people are hungry and over two billion are obese.

The economy is the core of the problem. The signals we are sending through the price system to the market decide where the quantities will be met: financial capital is overvalued and over-rewarded; human capital under-valued, under-rewarded; natural capital, more or less not valued and not rewarded at all. If anyone believes we will land in socio-economic and environmental balance, he should wake up – because this will never happen: the signals which are reaching the market are simply the wrong signals.

As European Commissioner I heard 100 times that I could not introduce various measures because ‘these are additional costs’.

No: these are the costs which are existing – but we are denying them. We’d rather see that they are paid by the health system or by future generations – because they cannot complain (although even they have started to complain now).

In the last 50 years, global resource use has more than tripled – the majority is connected with economics, not population growth. We are not against economic growth.

But we have to decouple that o growth from the growth of shou resources – and both should be decoupled from the environmental impact, or we will never solve the proble problems we have. The circular economy is an instrument to deliver decoupling.

Recycling is the worst o of the good: when you recycle, recyc you have used the resourc resources already – the damage is d done.

So it’s essential that we fo focus on the value-retention story. sto • This is an edited version of a presentation at the European Remanufacturing Remanufacturin Council’s annual meeting during Rematec 2019

Janez Potočnik is co-chair of the United Nations Environment Programme’s International Resource Panel and former European Commissioner for the Environment

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Revisits...

Electronic control unit (ECU) reman specialist Blue Streak was the subject of a profile in Rematec News way back near the turn of the century. Based in the UK city of Nottingham (where the company still is), the firm talked about the complexity of working at the cutting edge, particularly in terms of diagnostics.

Blue Streak:

The cutting ed ge of ECU reman techno logy

Blue Streak in Nottin gham in the UK has established strong position a in remanufactured ECUs, a crucial, increasingly compl yet ex segment of the automotive reman industry. “Defin ing faults relatin g to ECUs is a bit a doctor or a detect like being ive,” Don Georg e, Blue Streak’s Commercial Mana ger and ECU specia list tells ReMaTecNe Rapid advances ws. in vehicle technolog y

have increased the electronic content in vehicles by 30% to a point where the average cost of electronic control units in new vehicles can now represent up to 25% of the vehicle’s cost.

It is realistic to expect this to increase to 40% within the next ten years. The 2004 Volkswagen Phaeton already has 40 electronic control units while a Series 2 Renault Laguna has 22.

Consequently, new electronic control replacements could soon be greater than the value of

will soon be very little in a vehicle that is not subject to the control or monitoring by electronic control units,” as Don George, Commercial Manager at the UK’s Blue Streak, one of the world’s ten major ECU remanufa cturers, puts it in an interview with ReMaTecNews at Blue Streak’s Nottingh am facility, one of Europe’s most technolog ically advanced cencars less than five tres for ECU remanufa years old. cture.

To the ordinary As in so many other motorist, whose areas of technolog ambition is to run a safe y advances, this provides and reliable vehicle both challenges at a reasonable cost and opportun ities to remanufa and a minimum cturers. The chalof maintenance, such figures lenge being that may be somewha remanufacturers t omimust connous. However, tinually develop there is little doubt new, specialised that the skills in a sharply rising use high-cost, investmen of ECUs in cars will t heavy segment. substantially influence future The opportunities lie in the rewards for repair costs as well those as the ability of workshop who successfully master the hugely complex s to carry out ECUrelated repairs. operations required to develop and maintain an all“Not least in view makes ECU reman of the fact that there program.

The complexities inherent in the sharply rising use of ECUs – and hence the problems facing garages and repair shops – are there for all to see. Engine management units are one segment but there is also a wide and increasing range of electronic modules for ABS-systems, body control and climate control modules and a host of other ECUs fitted to vehicles. This constitute s a network that shares common signals for the vehicle. In the case of ABS the same sensors also provide the signals for the engine management ECU that the wheels are spinning so that the engine management ECU can modulate the throttle and cut the power to the engine to prevent wheel spin.

“Technologies like these open up a number of opportun ities. On the downside , it makes it very difficult for the garage to determine errors as it may be seeing a spurious signal from another ECU which makes it more difficult for the garage to diagnose ,” Don George says, adding: “Yes, you can in many ways compare this to the work of a doctor or a detective . The equipment we use is similar to the monitorin g equipment used in hospitals and you have to be a bit of a detective to trace and identify faults with the electronic s. Many of the problems relate to interferen ce from other electronic components. e.g. ignition systems interfering with engine management systems, thus creating problems that are not apparent from our tests.”

22 l ReMaTecNews

“As a matter of fact, we see an alarming number of ECU failures caused by faulty ignition coils. We need to understand these faults,

The feature notes that the 2004 Volkswagen Phaeton “already has 40 ECUs” (you can pretty much double that for some of today’s cars, which explains why ECU reman has not declined in popularity). “As in so many other areas of technology advances, this provides both challenges and opportunities to remanufacturers,” we said back then. “The challenge being that remanufacturers must continually develop new, specialised skills in a high-cost, investment-heavy segment. The opportunities lie in the rewards for those who successfully master the hugely complex operations required to develop and maintain an all-makes ECU reman programme.” Truly, there is nothing new under the sun.

Email your comments and stories to editorial@rematecnews.com

AUTOMATION & ROBOTICS

The guarantee of quality Automation will be vital for reman. In an exclusive extract from his new book, Fernand Weiland, Best Reman Ambassador in the Rematec Remanufacturer of the Year 2019 Awards, explains why

A

utomation in remanufacturing today is in a very early phase.

Around 95% of the production processes are manual. Only about 4% are semi-automatic and about 1% is already automated. Robots, with a few exceptions, are rare. I do not propose that remanufacturing will one day be fully automated but the proportion will grow year by year. The most difficult procedure to robotise will be disassembling. The digitisation of remanufacturing will progress but will not replace all the jobs because remanufacturing is not manufacturing new components.

The cost for implementing automated reman may be high but the values of the components to remanufacturing are also increasing all the time - making the pay-off more attractive. A reduction of labour costs (but also better ergonomics for workers) and improved quality are the main drivers. Consistent quality is a vital element of remanufacturing, especially to improve the acceptance of remanufactured (reused) products.

Elevating volumes Automation is a guarantor of quality.

Automation will decrease lead time through the factory and elevate production volumes. The progress of digital technologies will make the task to automate much easier. Over time robots will become less expensive, cameras for product recognition will become more

powerful and cost-attractive, sensors for production processes will to the same extent become more powerful - and last but not least, artificial intelligence (AI) will enhance all the reman processes. It is only a matter of time - and be aware that it may progress faster than you believe, leaving the advantages to your competitors if you do not embrace it.

Investments in automation, or even in robotics, must pay off in the short or medium term. The costs are relatively high - not only for the equipment, but also for creating an infrastructure and integrating it into the production process. Teamwork between workers and robots is essential, and education is key. High volumes are the starting point of automation but with increasingly powerful digital support the volume may, in a few years, not be such a constraint. Software and AI will facilitate the process, though it will take a few more years. Innovative remanufacturers are prepared to embrace the challenge which is good news for the future elevation and development of remanufacturing.

Remanufacturers have concluded that the introduction of robots is best suited to cleaning and painting. Volumes are large since most components need to undergo these processes. The programming of the robots is, despite the variety of components, less difficult.

Remanufacturers can reduce labour costs and use lower quantities of chemicals.

Innovative example Many remanufacturing processes, but certainly not all, can be automated.

A minimum batch size will often be required, but not always. Excellent examples are already available, mainly for the processes of painting and cleaning. A very innovative team at turbocharger remanufacturer BorgWarner has created a fully automated and selfmonitoring cleaning machine which can be individually programmed to run correct cleaning cycles. Programs for predetermined specifications are available for the timing of each cycle, for the type of chemistry, for litres and temperature for each bath, just to mention a few. Once the conveyor is loaded baskets are transferred automatically into, through and out of the machine to the unloading station.

This application is a perfect example of how automation can be introduced to a remanufacturing operation.

This is an edited extract from To Elevate Automotive Remanufacturing

by Innovation and Automation, edited

by Fernand Weiland. Co-authors are Francesco Maltoni, Thijs Jasink, Sebastian Groß, Thomas Bartscherer, Florian Schäfer, Wolfgang Gerke, Nigel Ramsden, Stefan Thäter and Mike Hague-Morgan.

The book is available now from fernand.weiland@t-online.de

© Funtap P | Dreamstime.com

Email your comments and stories to editorial@rematecnews.com

Rematec News

15

Rematec 2019 HIGHLIGHTS

The greatest

SHOW

Rematec 2019 saw the world’s remanufacturing community flock to Amsterdam for the industry’s premier event. Over the next few pages, we round up some highlights from three days of networking and idea sharing…

Pictures: Rogier Bos

B

ig or small, well-known industry figure or first-time visitor: Rematec 2019 in Amsterdam was a magnet for companies, individuals and products - both conventional and unexpected - the veterans, the start-ups, and the simply curious. It made for a heady mix of ideas and insight. A growing number of reman executives from original equipment manufacturers are visiting Rematec and the first OEM-Reman Network provided a meeting place for both groups, where

ideas could be shared. Rematec is a good conduit for such discussions, and participants at the closed session saw that they had similar concerns and agreed that it was worthwhile to talk.

In addition to the presentation of the Remanufacturer of the Year Awards, Rematec also hosted the first International Forum on Wind Turbine Remanufacturing, where some of the challenges and learnings from other industries were explored.

• News, p6

To celebrate Rematec’s 10th edition, Rematec News editor Adam Hill took the most out-of-focus selfie ever

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Rematec 2019 HIGHLIGHTS

The key to it all Three keynote speakers set the tone for some of the main themes of Rematec 2019, with particular reference to the shape of things to come. Dick Cruslock, strategy and programme manager, global customer service, Volvo Cars is the first senior executive from an auto manufacturer to present at Rematec.

He talked about the Swedish group’s commitment to reman, explaining its take-back system and the resource savings it was generating from its remanufacturing activities before answering multiple questions from

Dick Cruslock an enthralled audience. Meanwhile thralled audience Christoph Dutschke, Mahle’s coordinator, r, technical service Europe, looked forward d to the drivetrains of the future, examining ng options such as hybrid, electrified and fuel cell.

Christoph Stürmer, global lead analyst at PwC Autofacts, talked about how changing trends in mobility will affect remanufacturing. “Six months ago, I didn’t know this industry existed,” he admitted, before explaining a number of business opportunities – in particular from the projected increase in car-

Christoph Stürmer sharing, rather than individual vehicle ownership, and advances in electric, autonomous and connected vehicles.

There were a variety of other presentations at the Rematec Theatre throughout the three-day show, including from Paul Ryznar, CEO of Light Guide Systems, who took visitors through the benefits that augmented reality could bring to reman operations.

Rematec welcomes Africa ambassadors With perhaps the largest used vehicle imports market in the world, there are plenty of remanufacturing opportunities to be found in Africa.

Rematec was proud to host ambassadors from two of the continent’s most important countries: her excellency Sophia Horner-Sam, who is Ghana’s ambassador to the Netherlands, and her excellency Mirjam Blaak Sow, who is the ambassador at the Ugandan embassy in Brussels, accredited to Benelux and the European Union. Both ambassadors were particularly interested in the sustainable benefits of reman. Rematec is grateful to Larry and Helen Ruth Dorkenoo from the Pan-African Media & Development Agency, Winifred Ijomah of Strathclyde University and John Collins of Autoenterprises, who all kindly gave their support and guidance.

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REMRematec 2019 HIGHLIGHTS

Getting help from an expert A popular feature of the previous edition of Rematec, the Meet the Expert sessions were expanded across the three days, giving visitors the chance to tap into the experience of senior figures across the industry, in an informal setting.

Hanno Grosseschmidt, managing director of Encory, talked about doing business with OEMS, while Jianjun Xie,

secretary general of the China Parts Remanufacturing Association, offered his tips on working in the country. Other experts included Nardo Stremmelaar of Motoplat (testing & diagnostics), Francesco Maltoni of RWTH Aachen University (battery pack reman), John Chalifoux of MERA (advanced marketing) and SBS Ecoclean’s Matthew Cooper (parts cleaning technology).

Industry dinner The Royal Industrieele Groote Club in historic Dam Square in the centre of Amsterdam was the venue for the first Rematec Industry Dinner, which brought together a highlevel mixture of the big names in remanufacturing plus OEMs, academics and policymakers for an evening of networking.

Email your comments and stories to editorial@rematecnews.com

Rematec News

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Rematec 2019 HIGHLIGHTS

A glimpse of reman’s future A vision of the future was presented at Rematec 2019, with several university students offering their thoughts on how to optimise the demand for remanufactured automotive parts. Jingshu Du (pictured, third from right), assistant professor of strategic management and innovation at VU University, hosted their presentations. Various

inventive ideas showed the students had grasped reman’s current lack of cut-through with the general public and the need to attract customers – particularly from younger generations. The winner of the

glass trophy was Maëlle Le Rudulier from Canada, whose video entry involved putting stickers on reman parts and impressed the jury with its simplicity.

We need to talk about diesel With climate change legislation necessitating a reduction in CO2 emissions, hybrid and electric drivetrains will increasingly form part of the vehicle

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The Diesel Discussions panel in the Rematec Theatre unpicked the implications of these changes, which include new models of vehicle ownership, a need for ow manufacturers to invest m Patrick Ayad in new technology as people demand alternatives – and alt reman rem in prime position as a sustainable solution.

“We are at the so start sta of a big movement here,” says Patrick Ayad, her global automotive lead, glo Hogan Hog Lovells.

parc. At the same time, emissions scandals such as ‘Dieselgate’ mean there is a shift from diesel engines to petrol.

Email your comments and stories to editorial@rematecnews.com

REMRematec 2019 HIGHLIGHTS

A delegation from Dutch trade associations BOVAG, STIBA, ARN and FOCWA visited Rematec 2019 for Dutch Aftermarket Day and were briefed on the benefits of reman

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Rematec News

21

Rematec 2019 HIGHLIGHTS Solange Blaszkowski

Janez Potočnik

A meeting of minds The European Remanufacturing Council (CER) held its annual meeting for the first time at Rematec 2019, with speeches from CER director David Fitzsimons and Solange Blaszkowski, director, standardisation environment, Phillips Intellectual Property & Standards.

An opening address from Janez Potočnik of the International Resource Panel, sought to put reman’s potential contribution to the environment into a broad context.

The current economic model is “the core of the problem”, he said. “If anyone

believes we will land in socio-economical and environmental balance, he should wake up – because this will never happen: the signals which are reaching the market are simply the wrong signals.”

•‘People are strange’: Viewpoint, p14

Reman Festival, celebrating the 10th edition of Rematec matec and 30 years of APRA Europe: In what is perhaps the biggest remanufacturing social gathering ever, around 300 international reman professionals enjoyed drink and networking at Rematec 2019 - the burgers were good too

ICoR 2019 at Rematec Research from academic institutes around the world was showcased at the fourth International Conference on Remanufacturing (ICoR) during Rematec 2019. This year, the conference provided academics an opportunity to share knowledge and expertise, and gather experiences from industry colleagues visiting the Amsterdam show. ICoR chair Dr Winifred Ijomah, from Scotland’s University of

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Strathclyde in Glasgow, said: “The conference…allowed the academics to promote and encourage the use of our research, while allowing us to gain a better understanding of the specific problems industry has.” Dr Erik Sundin from Linköping University in Sweden, and Professor James Windmill from Strathclyde, assisted in organising ICoR. Selected papers will be published at www.journalofremanufacturing.com

Email your comments and stories to editorial@rematecnews.com

COMPANY PROFILE: REVIVA

“We talk about ‘customers for life’,” says Duane Wanner of Reviva

is the mother of reinvention An approach from UPS led US firm Reviva to add gas engines to its diesel engine reman business.

Rematec News US correspondent Denise Rondini finds out more

R

einvention seems to be in the DNA of Reviva, an engine remanufacturer headquartered in Minneapolis, Minnesota. Its latest iteration involved adding gasoline engine remanufacturing to what had been solely a diesel engine reman operation.

So why change a successful operation?

“We talk about ‘customers for life’”, says Duane Wanner, general manager of the gas engine division. “The customers we look for are not those that are looking for the cheapest engine, but rather are looking for a long-term relationship. Part of that relationship is staying close to

those customers, understanding how their needs are changing, and then evolving with those changing needs.”

In 2015, UPS approached Reviva about remanufacturing gas engines. In fact, the company asked three times about Reviva building long blocks. Initially, Reviva was reluctant because these were sold as low-price commodities and that did not fit with the company’s business model. Eventually, the international shipping group asked Reviva to take on responsibility for the gas long blocks.

“They told us that we didn’t have to build them, but we had to make sure they are built to a certain recipe,” recalls Wanner.

Email your comments and stories to editorial@rematecnews.com

Guarantee quality Not only did UPS want Reviva to guarantee the quality of the long block, but it also wanted the company to turn them into drop-in engines, dynamometer test them, put them on the shelf and ship them out - the same day an order arrived.

“Once they started talking about that, we realised we were having a totally different conversation,” Wanner said. “It really wagged our tail because we are talking about value-added activity and we get excited about that. We don’t want to be just a ‘me-too’, we want to be doing value-added activity for our customers.” ➤ Rematec News

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COMPANY PROFILE: REVIVA

➤

To make it more challenging, UPS gave Reviva only 19 days to get a reman gas engine running on a dynamometer. By leveraging the talent, knowledge and experience of its diesel engine reman operation, Reviva was able to get the job done. When UPS returned, there was a remanufactured gas engine on the dyno.

On September 15, 2015, the company shipped its first gas engine to UPS. “It took us until the beginning of 2017 before we had fully developed their complete reman offering to take care of all their gas engines,” Wanner explained.

UPS initially was the company’s only customer for gasoline engines and this year Reviva will have shipped 10,000 units to UPS. Since the beginning of 2019, the company has been expanding its gasoline engine customer base as the reman operation is now in its own facility in Brooklyn Center, Minnesota.

Wanner, who had been corporate chief operating officer, made the decision to move to the gas engine division as its general manager, with the stipulation that the business get its own facility.

More reinvention Interestingly, the addition of gasoline engine remanufacturing was not the first time the company had to reinvent itself.

Reviva actually began life during World War II as Dealers Manufacturing, a Ford authorised remanufacturer (FAR).

Wanner explained that at one point Ford decided to consolidate its FARs and at that point Dealers left the reman business, but became a Ford authorised distributor (FAD) instead. The FAR business was almost 100% of Dealers’ engine reman activity. “That was when we really had to start figuring how to become an independent diesel engine remanufacturer,” Wanner said.

In 2002, Dealers changed its name because it was no longer selling to dealerships - but rather was selling to distributors and end users. With the help of a marketing company the name was changed to Reviva. Wanner said that reflects a combination of revitalisation and long life: “It really represents who we are and what we are attempting to do.”

The FAD business continued until 2010 when Ford consolidated its FADs and Reviva was given the opportunity to sell its sales territory. Then the company, which had previously had Ford Motor Co. as its main customer, with some side business from other firms, had to “figure out how to put together a distribution network and find customers who were interested in remanufactured diesel engines”, Wanner recalls.

In reflecting on the changes over the years, Wanner continues: “Our company is pretty resilient. We don’t like to lose. We are very entrepreneurial and we are very focused on our customers. That has served us well over the years.”

Third generation Reviva has now successfully transitioned from second-generation to third-generation leadership over its three separate business units.

Engine Rebuilders in Oaks, North Dakota, specialises in diesel engines primarily for off-highway industrial applications, including things like skid-steer loaders, bobcat backhoes, trenchers, tree-trimming equipment, commercial golf course equipment and so on. Brands represented include: Kubota, Perkins, Deutz, Isuzu, Mitsubishi, Kohler, Peugeot, Wisconsin, Ford and New Holland.

Minneapolis, which since 1960 has been the corporate HQ, is where medium-duty engines are remanufactured and also where the company started remanufacturing Class 8 diesel engines. On the medium- and heavy-duty diesel side work is primarily with the original equipment manufacturers, which included International, Cummins, Caterpillar, Ford, Mercedes Benz and General Motors.

The newest business unit — gas engine remanufacturing — operates as a separate division, with General Motors and Ford the brands remanufactured there.

“Our company is pretty resilient - we don’t like to lose: we are very entrepreneurial and we are very focused on our customers” Duane Wanner, Reviva

Reviva added gasoline engine reman to its diesel reman activities

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COMPANY PROFILE: REVIVA

Reviva usually can ship an engine in 48 hours although gas engines tend to ship the same day

Going lean

Customer service Wanner attributes the success to the services surrounding the sale including a technical telephone line that is staffed until 10pm Central Time, failure analysis, providing service bulletins and assistance with core return.

“I think there is a pricing component, but I don’t think it is the main driver.”

In fact, Reviva has some diesel products that are priced higher than the original equipment manufacturer (OEM) product.

“It is higher because we can get it to the customer quicker than the OE can.”

Wanner said Reviva may not always be the first call when someone needs an engine. “But when the OE tells them it is going to be three, four or five weeks to get the product and that the customer may have to change the oil pan or something else to make it fit their configuration, they call us.”

Reviva usually can ship an engine in 48

hours although gas engines usually ship same day. “Our customers are people who are using their equipment to make a living so it is all about downtime,” he says. “If we have a product that we can get to them quickly and it as good or better than the OE, price really isn’t the issue.”

If the past is any indicator of the future, Reviva will likely be able to adapt itself to changing market conditions including the move toward electric vehicles. “We are going to continue to stay close to our customers because that gives us an opportunity to see where they are heading,” Wanner concludes. “We also get to understand their pinch points and their needs going forward. We will continue to evolve with our existing customer base if that means some form of electrification or remanufacturing of batteries, or hydrogen cells or whatever it might be - there will be something in there that we will be involved with.”

Email your comments and stories to editorial@rematecnews.com

Back in the early 2000s, when Duane Wanner got involved with the operations side of Reviva, he said the company was struggling “to consistently put out a quality product and meet the goals that we had set”.

He somehow heard about lean manufacturing and decided to become a student of it. “We probably would not be in business today if we had not switched to lean manufacturing. It totally reinvented who we are, what we do, how we go to market, and how we look at customers.”

Lean took the business from the Ford reman days, which was all batch manufacturing, to today’s 100% mixed model. “Every employee and every machine in the company is capable of building every engine we offer our customers,” Wanner explained.

Every day the schedule is different, every hour the schedule is different.

Very seldom will the same engine get built back to back. “What we build today is based on what our customers bought from us yesterday,” he said.

Prior to lean manufacturing, if an engine showed up on Reviva’s dock needing to be remanufactured, it could not jump over anything else that was already in process. It would take more than 30 days to get an engine out to the customer. “Today if we don’t have it in stock, the longest lead time that we have is five days,”

Rematec News

25

Bridging East and West in Remanufacturing

扭㘴₫導㡈␜Ⓟ抯嫛 ₩䤓㫴㬐

Join us in Guangzhou for the first edition of Rematec Asia: Reasons to participate: z There are an estimated 93.2 million passenger vehicles in China that are out of warranty.

z Rematec Asia is located in the heart of the automotive industry: Guangzhou.

z Meet new business partners and find out the latest trends in the Chinese reman market.

z Benefit from value added services such as pre-arranged matchmaking appointments, an industry dinner, translation services and excursions to local remanufacturing companies.

Find out more on our website: www.rematec.com/asia

Organised by:

Co-located with:

www.rematec.com/asia

TURBOCHARGERS

With this expanding range, the turbocharger market is also opening itself up to new distribution channels - but again this opens up more opportunities for the turbocharger specialist to support not only independent garages but also motor factors and warehouse distributors.

There is – and will always be – a reliance on businesses that have the specialist equipment and expertise to offer the very highest level of turbocharger repairs.

The precision required is extremely high and consistency is vital

Reman standards

Ensuring viability Turbocharger reman continues to face many challenges - but it is up to the market to take advantage of any opportunities and maintain quality standards, says Darren Johnson, sales manager of Melett

T

he decline of diesel engines across Europe remains a concern.

According to industry data expert GiPA, with the fuel type widely demonised, several countries saw diesel’s share of total registrations drop by 20% or more between 2014 and 2018.

But there are still millions of diesel cars between one and five years of age with their ‘prime’ workshop years ahead of them. With nearly half of the diesel parc falling into this category, GiPA fully expects the importance of diesel to the aftermarket to increase in the coming years, as more and more of these younger bracket vehicles age.

This, coupled with the growth in gasoline turbos does mean that, at the point of entry, turbos have a bright future.

affecting the perception of ‘new versus reman’ even more.

It is quite feasible for a reman turbocharger to be subject to greater scrutiny by independent garages than a new low-cost unit, despite the new unit potentially being of lesser quality than the remanufactured equivalent.

This doesn’t just confine itself to turbochargers but to product groups such as rotating electrics and brake calipers, for example.

Reman turbos may be subject to greater scrutiny

Quality perceptions It could be argued, however, that the main changes affecting the turbocharger market are further down the supply chain. With an expanding range, the emergence of new, lower cost units is Email your comments and stories to editorial@rematecnews.com

Melett, through its ‘What’s in Your Turbo?’ initiative, is encouraging the market to question parts quality even more and look beyond price and appearance. It is risky to assume that parts are identical, even if they look the same.

While components look very similar to their higher quality counterparts, component failure within days of operation is common as these poor quality products cannot perform efficiently under the extreme operating conditions.

It is important to understand the point at which cutting margins turns into reducing quality. Every component has a minimal price point and anything lower than that point can only be achieved by using lower grade raw materials in the manufacturing process.

Due to the extreme operating conditions within a turbocharger, the level of precision required in the manufacturing of turbo parts is extremely high and consistency is vital.

Producing one component with 100% accuracy is a relatively simple process; to achieve the same level of accuracy when producing thousands of components is an extremely difficult task, and without the use of strict manufacturing processes this would not be possible.

To produce quality on a large scale you need to use the correct materials, manufacturing processes and machinery combined with the correct quality systems, all of which are undertaken by companies such as Melett, adhering to internationally recognised standards.

The fact remains, though, that the turbocharger repair market is at a pivotal point. It must fight this needless race to the bottom and promote remanufacturing, investment and engineering, leading to greater prosperity throughout the entire market.

Rematec News

27

We are good to go During Rematec 2019 in Amsterdam, APRA Europe’s general assembly gave the green light to the association’s board and elected two new directors, explains chairman Dr. Daniel Koehler

Board approval We are happy to inform you that the board of directors has been given discharge by its members for its work in the previous year. This was probably one of the most demanding and labour-intensive years of the association, due to its reorganisation.

Among the actions delivered were: • Belgian Royal Decree for the constitution of APRA Europe AISBL • Clear APRA Europe strategy including regional ambassadors • Clear value proposition to members • APRA European Symposium 2018 in Budapest • Member appreciation campaign at Automechanika Frankfurt 2018 (trophies handed over) • Contribution to the Polish aftermarket congress in Warsaw (SDCM) and initiation of cooperation with SDCM • Partnership with Symposium on Automated Remanufacturing • Green Page articles in each edition of Rematec News • New APRA Europe informational flyer • White Paper together with RAI/Rematec on aftermarket trends relevant to warehouse distributors and wholesalers • Integration of APRA Europe into consortium of the Horizon2020 research project FiberEUse

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Daniel Koehler (left) is congratulated on APRA Europe’s 30th anniversary by RAI Amsterdam’s Niels Klarenbeek at Rematec 2019 • Launch of APRA Europe News • Initiation of APRA legal corner • Launch of social media channels on LinkedIn and Twitter • New Rematec booth concept and location • Extensive APRA Europe conference programme at Rematec • Celebration of 30 years of APRA Europe • Ongoing and renewed cooperation with Rematec Our aspiration is to do this for the benefit of our members and to improve the business environment. The approval given is a sign of trust in our efforts towards advancing and growing the association. Thank you, all members, for the confirmation of our targets and for taking part in our journey!

Two new directors The most exciting agenda item was the election of two additional directors: six candidates were listed, all renowned experts in their fields, dedicated to the remanufacturing business and well suited to complement the board. We are pleased to announce that the APRA Europe general assembly elected: • Professor Marcello Colledani, researcher at Polytechnic University of Milan in Italy • Marcin Zieba, group production director at Borg Automotive Poland I personally congratulate them and, together with my colleagues from the board, we give them a warm welcome.

Rogier Bos

While Rematec 2019 was in full swing, APRA Europe held the first-ever general assembly of its members. Since its constitution as a Brussels-based European non-profit association, members have an official vote and can actively shape the association. Many followed our invitation and were present in Amsterdam to give their votes on manifold ballots and elections.

We are looking forward to working with you! To the members, I want to say thank you again for all approvals and your motivating support of our strategy.

We will keep up the pace in order to advance our business.

• The next ordinary general assembly will take place during the APRA European Symposium 2020 in Prague, Czech Republic (24-27 March 2020)

Political agenda As another step towards our clear association positioning, we developed and wrote down our political agenda which will guide our way through to more reliable and simplified conditions for remanufacturing. In brief, APRA Europe: 1. promotes remanufacturing as an integral part of the circular economy 2. stands up for an independent aftermarket 3. advocates for free trade and a reliable legal framework 4. connects with other associations for remanufacturing lobbying activities inside Europe With a set of key topics for each subject in mind, as well as existing achievements, we are motivated to tackle all future issues. Because we believe this positioning is crucial, we decided to ask the general assembly for approval of the agenda, which they did 100%.

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MARKETPLACE

Balancing Machines

Turbo Flow Benches

STP-Parts GmbH Schenck RoTec GmbH Landwehrstr. 55, 64293 Darmstadt, Germany P +49 6151 32 2311 E rotec@schenck.net W www.schenck-rotec.com

Otto-Hahn-Str. 7, D-40721, Hilden, Germany P +49 (0) 2103 978 66 10 E info@stp-parts.de W www.stp-parts.de

CONSORZIO ARMEC Via Ruvo, Km. 1 9, 70033, Corato, Italy P +39 (0) 80 872 44 17 E support@turbo.it W www.turbo.it

Diagnostic Equipment Turbo Parts CONSORZIO ARMEC Via Ruvo, Km. 1 9, 70033, Corato, Italy P +39 (0) 80 872 44 17 E support@turbo.it W www.turbo.it

MSG Equipment 18 Biolohichna str, Kharkiv, Ukraine P +38 05 7728 0171 E info@msgsteering.com W www.servicems.eu

Cores

CONSORZIO ARMEC Via Ruvo, Km. 1 9, 70033, Corato, Italy P +39 (0) 80 872 44 17 E support@turbo.it W www.turbo.it

Transmission Parts

RS Automotive Core Unit 3, Brunel Road, Manor Trading Estate, Benfleet, Essex SS7 4PS P +44 (0) 1277 822806 E enquiries@rsautocore.co.uk W www.rsautomotivecore.co.uk

EXEDY Clutch Europe Limited Unit 2, Rokeby Court, Manor Park, Runcorn, Cheshire, UK, WA7 1RW P +44 (0) 1928 571850 E enquiries@exedy.co.uk W www.exedy.co.uk

YOUR COMPANY DETAILS HERE For more information please contact the Rematec News Sales team.

Sara Clark Advertising Manager P +44 (0)1732 445302 E sara.clark@talkmediasales.co.uk

+1 513-771-8000 email: info@jnelectric.com

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WE KEEP YOU RUNNING Rematec News

29

DIARY

September 2019

15.Oct - 19.Oct

January 2020

EQUIP AUTO 30.Sep - 01.Oct

MERA SUSTAINABLE MANUFACTURING CONFERENCE

Paris, France

27.Jan - 30.Jan

HEAVY DUTY AFTERMARKET WEEK November 2019

Meet the Rematec team! Contact us to make an appointment. rematec@rai.nl

Grapevine, TX, USA

Metro Detroit, USA

October 2019

01.Nov - 02.Nov

APRA BIG R SHOW October 2019 09.Oct - 10.Oct

RIC-RIT WORLD REMANUFACTURING CONFERENCE Rochester, USA

Las Vegas, USA Held in conjunction with the ATRA PowerTrain Expo (30.Oct – 02.Nov)

March 2020 11.Oct - 13.Oct 24.Mar - 27.Mar

APRA EUROPEAN SYMPOSIUM Prague, Czech Republic

AAPEX 2019 September 2020

11.Oct - 13.Oct Guangzhou, China First edition of Rematec Asia, co-located with AAG Auto Aftermarket, bridging east and west in remanufacturing.

11.Oct - 13.Oct

10.Nov - 16.Nov

AGRITECHNICA Hanover, Germany

December 2019

08.Sep - 12.Sep AUTOMECHANIKA FRANKFURT Frankfurt Am Main, Germany

Yorien de Ruijter sales manager Rematec & Rematec Asia

To advertise in Rematec News Contact Sara Clark

03.Dec - 06.Dec

AAG AUTO AFTERMARKET

AUTOMECHANIKA SHANGHAI

Guangzhou, China Includes the Remanufacturing Forum, organised by China Parts Remanufacturing Association (CPRA).

Shanghai, China

sara.clark @talkmediasales.co.uk Tel. +44 (0)1732 445302

Sara Clark advertising manager Rematec News

© Sinomachint

30

Guangzhou, China

05.Nov - 07.Nov Las Vegas, USA

REMATEC ASIA

REMATEC ASIA

www.rematec.com

Send your remanufacturing diary events to editorial@rematecnews.com

Core competency Core brokers play a significant role in the circular economy and remanufacturing, says Georgios Chatzinikolaou of STP-Parts – and it’s important that their role is properly recognised accumulation of cores, or shortages leading to low levels of customer service - in other words, not being able to supply the reman industry with the right material in the right quantities at the right time.

In order to achieve this consistently, the core supplier needs to invest in cores which are not in demand today but which will come in the future (forecasting) something which is often associated with cash flow problems for the core supplier.

Chinese imports

for the creation of highly skilled jobs and economic growth. So, in a few words – yes, remanufacturing is important.

Key problem But what is one of the most predominant elements of remanufacturing? The cores.

A key problem faced by a remanufacturer is ensuring a sufficient supply of cores to support reman operations. And at this point the critical role of the core supplier comes in. These are the ones who are going to fill in the gaps for the reman industry: sourcing of cores, correct identification, satisfaction of various quality criteria, forecasting, storing, optimisation and statistical techniques are some of the basic and challenging functions of a core supplier.

The sourcing of cores to be supplied to reman companies is a complex set of activities that requires careful coordination to avoid the uncontrolled

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© Georgios Chatzinikolaou

The circular economy (CE) is an economic system which aims to minimise waste and make the most out of resources. In such a system, resources, waste and emissions are minimised by slowing and narrowing energy and material loops. One of the most important CE processes is, of course, the remanufacturing of auto parts.

Today there is no doubt about the benefits to the environment of auto parts reman. By keeping components in use for longer, significant energy use and emissions to air and water can be avoided (e.g. CO2 and SO2). But the benefits are not only environmental. Remanufactured products, according to studies by the European Remanufacturing Network (ERN), are typically 60-80% of the cost of a new product - due to the cost savings made from the recovery of the materials and energy content of the product. In addition, reman provides opportunities

In addition, the uncontrolled import into Europe of Chinese copies in recent years has resulted in the significant drop in sales of remanufactured products. As a consequence, the demand for cores has become lower - creating higher risks for the core suppliers investing in cores.

Let‘s hope that the people in the reman industry - and outside it, including politicians - will take appropriate measures in order to continue to talk about the circular economy and remanufacturing and not just ‘linear business’ in the future.

And remember: ‘No cores, no reman’.

Rematec News

31

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