ReMaTecNews | 2014 edition 3 by RAI Amsterdam

REMANUFACTURING INTERNATIONAL

JUNE 2014 | NO 3 | VOLUME 14

Reman alliance for Middle East TransAxle partners OWS in Dubai

New chairman of MERA

Taking reman to higher levels: Caterpillar

Ganzeboom: Making customers happy www.rematecnews.com

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CONTENTS

ReMaTecNews | 3

10 | New Reman alliance in the Middle East

14 | Visiting Caterpillar - the world’s largest remanufacturer

22 | Ganzeboom - a family with quality in its genes

Traditionally the Middle East has been barren land as far as remanufacturing goes. This could be about to change. A new alliance between heavy duty remanufacturer, TransAxle of New Jersey in the US and Dubai-based parts supplier, OWS, opens up new opportunities for both parties - and, possibly, for remanufacturers in general.

For years Caterpillar, the global earth moving mining giant, has been the world’s largest remanufacturer and there are no signs that its dedication to reman is slowing down. ReMaTecNews reports from one of CAT’s high-tech reman facilities in Singapore - a prime example of the huge industrial group’s commitment to the cause of remanufacturing.

Dutch transmission specialist, Ganzeboom, has not been chasing publicity in its 25 years as an expanding remanufacturer. Rather its development has been characterised by steady growth and faith in delivering quality. It works.

“If the reman associations don’t show the way, then others will. And we may not like that.” Joe Kripli, Chairman and president of APRA

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Page 18

Editorial

Zwicker is new chairman of MERA

Wolma leaves Meritor for Dana

Remanufacturer of the Year 2014

Ganzeboom - quality is all

Heavy Duty - the second hidden giant

TransmissionWorld

World Reman Summit 2014

APRA News

FIRM News

ReMaTec Events

International exhibitions and events

In 2014: 6 editions ReMaTecNews Magazine | Special pages on Transmissions in Editions 1, 3, 5 | Special pages on Heavy Duty/Trucks in Editions 2, 4, 6

EDITOR’S LETTER

ReMaTecNews | 4

ReMaTecNews June 2014 | Number 3 | Volume 14 ReMaTecNews, the only international news m agazine and website dedicated to automotive and heavy duty remanufacturing worldwide, is an independent channel for news, views and d evelopments within the r emanufacturing industry. Published by Amsterdam RAI B.V. P.O. Box 77777 1070 MS Amsterdam The Netherlands In association with

Moving into uncharted areas This edition of ReMaTecNews reports on a new venture in a region that has until now, ranked rather low on remanufacturers’ list of priorities. The announcement of the Middle East partnership between New Jersey-based drive train components remanufacturer TransAxle and OWS Auto Parts in Dubai, therefore, marks a highly interesting development in what has traditionally been a desert for remanufacturers. What the eventual outcome will be remains to be seen. We suspect that, in retrospect, the announcement will be seen as significant. There is more than one reason for this. The announcement draws attention to the fact that the states along the Persian Gulf are now displaying evidence of increasing awareness of the importance of costs in the automotive and heavy duty industries. The stories of local owners discarding their vehicles once they run out of petrol have long since disappeared into the mists of history. At the same time, this new US-UAE reman venture reflect a growing, albeit still discrete, perception among the golf states and even Saudi-Arabia, that they need to care about the world’s environment – as, for instance, the case is in China. In the longer term, perhaps even mid-term, this can only promote remanufacturing as the region realises that reman is the ultimate form of recycling. On the backdrop of the enormous financial influence of some local authorities and businesses, this may have an important impact on future reman developments across the Middle East. Ultimately, the perception of remanufacturing and its benefits, is dependent on how markets respond to what in many areas is an unknown - or, at a minimum, little understood, concept. Conversely, progress for the industry is also greatly influenced on reman companies willingness to explore new avenues. The outcome of the new TransAxle/OWS venture in the Middle East will serve as a pointer for other remanufacturers looking for new opportunities.

William Schwarck, Editor-in-Chief

Editor-in-Chief William Schwarck Phone +33 49 34 02 108 editorial@rematecnews.com Marketing Communications & PR Eva Barten Phone +31 (0)20 549 13 75 e.barten@rai.nl Advertising Sales Ewoud Barink Phone +31 (0)20 549 14 31 Fax +31 (0)20 549 18 89 advertising@rematecnews.com Publisher Niels Klarenbeek (responsible under Dutch Press Law) n.klarenbeek@rai.nl Production Jorn Bom Phone +31 (0)20 549 12 12 traffic@rai.nl Design & Art Jenb, Graphic design, Hilversum, The Netherlands www.jenb-online.nl Printing MediaCenter Rotterdam, The Netherlands Copyright Amsterdam RAI, Amsterdam, The Netherlands Reproduction Permitted, providing ReMaTecNews is credited Subscription magazine and e-newsletter www.rematecnews.com Change of address Phone +31 (0)20 504 28 00, Fax +31 (0)20 504 28 88 E-mail info@rematecnews.com Website / ReMaTecNews magazine online www.rematecnews.com 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.

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NEWS FROM THE INDUSTRY

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MERA elects Cummins’ Zwicker new chairman Shawn Zwicker, the long-standing general manager of ReCon Europe and Joint Ventures, Cummins Inc., has been elected chairman of the Board of Directors of MERA, the remanufacturing division of the Motor and Equipment Manufacturers Association in the US. A highly experienced reman executive, Shawn Zwickers succeeds the division’s founder Michael Cardone Jr. Cardone, however, will retain a seat on the executive committee of MERA’s Board of Directors. A 20-year industry veteran Shawn Zwicker’s experience includes a variety of leadership roles within the original equipment and remanufacturing operations of Cummins, Inc. Prior to re-joining Cummins in the ReCon organisation, Shawn worked for PricewaterhouseCoopers as a principal consultant in the firm’s cost management and operations strategy practice. As a result, he brings

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a wide range of managerial, operational and engineering expertise to the chairmanship. “I am honoured and humbled to have been elected chairman of MERA,” said Shawn Zwicker. “I believe MERA is the right organisation to best represent the interests of our industry, and acknowledge and thank Michael Cardone for his dedication to MERA and the remanufacturing industry.” A new perspective “As MERA continues its strong growth, it will be important for us to balance the business interests of original equipment suppliers, independent aftermarket manufacturers, and suppliers of cores and other raw materials,” said Michael Cardone. “Shawn understands this and will bring a wealth of experience and a new perspective to the chairmanship.” While Cummins, one of the world’s leading engine

Shawn Zwicker – New chairman of MERA. manufacturers, has been offering remanufactured products for more than 45 years, its commitment to remanufacturing under Zwicker’s guidance has strengthened considerably in recent years. This is not only the case in the North American market but increasingly in Europe, India and, especially, China, where the company operates plants for engine and parts remanufacturing. “Remanufacturing is a very important piece of Cummins’ overall business, a very good commercial business for us,” Shawn Zwicker told ReMaTecNews in a previous interview. “Remanufacturing has tremendous sustainability effects and we are looking to expand the connection between remanufacturing with sustainability.” n

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Meritor’s Doug Wolma departs for Dana Corporation The early spring saw a significant change at the upper levels of the US reman industry, when Doug Wolma, Meritor’s 45 year-old Global Remanufacturing Manager, left the company to take up a new position with Dana Corporation. In his time with Meritor, Wolma was a driving force behind Meritor’s rise to one of the world’s foremost remanufacturing companies. He will now be responsible for driving Dana’s expansion into remanufacturing in a big way. Ohio-based Dana Holding Corporation is a world power in the supply of axles, driveshafts, offhighway transmissions, sealing and thermalmanagement products and has annual sales of 6.8 billion dollars. Its 25,000 employees operate in around 90 engineering, manufacturing and distribution facilities in 27 countries.

Until now, remanufacturing has played a somewhat secondary role at Dana. That, however, is set to change. Doug Wolma explains: “Although Dana has been involved in remanufacturing for some time, the intention is to expand the reman activities significantly. I see this as a hugely interesting challenge and am delighted to be part of it.”

and the US, but world-wide.” On the backdrop of Dana’s range of products and services, its future reman activities will embrace light vehicles and off-highway applications as well as some heavyduty applications.

“Remanufacturing teaches you to think out of the box”

New aftermarket strategy “The thing about the reman industry is that it has enormous scope for innovation. It teaches you to think out of the box and the aftermarket team at Dana clearly realises this,” he told ReMaTecNews. “In addition, it can be a lot of fun as more countries around the world turn to remanufacturing. Currently, we’re working on an aftermarket and distribution strategy.” n

A winner of ReMaTecNews’ Remanufacturer of the Year Award in 2012, Doug Wolma sees what he calls “huge opportunities not just within the EU

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Celebrating 10 years of world-class remanufacturing By William Schwarck, Editor-in-Chief, ReMaTecNews, and Chairman of the Jury for ReMaTecNews’ Remanufacturer of the Year Award It’s hard to fathom. Nevertheless, the fact is that 2014 marks the tenth anniversary of ReMaTecNews’ Remanufacturer of the Year awards. Is it really a decade ago that we here at ReMaTecNews decided that the time had come to honour some of the pioneers and innovators, those that have made a crucial contribution an industry of our time? In one word: Remanufacturing.

We have done it every year ever since. And this year we’re doing it again - albeit with a slight change. And that change is that in 2014 the Remanufacturer of the Year ceremony will take place in the US, on November during the new Big R/ReMaTecUSA exhibition in Las Vegas.

Panel of judges with 2013 winner Allan Smart, Fernand Weiland, Chairman William Schwarck, and Volker Schittenhelm.

There are two reasons for this. One is our wish to mark the beginning of a new stage in the relations between the organisers of the world’s two largest reman events. The other is that the increasing globalisation of remanufacturing will, inevitably, lead to closer links across the Atlantic as well as across the world. It is, therefore, only fitting that the world’s most prestigious reman honour is also

awarded outside its original home, Europe. More detailed information about the ReManufacturer of the Year Award, its nomination process, the qualifications required and the deadline for nominations (September 15) will be given in Edition 4 of ReMaTecNews in August. In the meantime relevant info is also available at http://www. rematec.com. All members of the world-wide reman community are invited to join in identifying the individual or company deserving of being Remanufacturer of the Year 2014. We look forward to meeting you in Las Vegas. n

New US member of Award Panel of Judges ReMaTecNews is pleased to announce that Doug Wolma, winner of ReMaTecNews’ Remanufacturer of the Year Award in 2012, has accepted to join the Panel of Judges for the award. This expands the jury to four and brings a clearer US dimension to the award, the most prestigious in the remanufacturing industry. The other three judges are Volker Schittenhelm of FIRM, the European Association of Engine Rebuilders,

Fernand Weiland a former Chairman of APRA Europe and William Schwarck, Chairman of the Panel and Editor-in-Chief of ReMaTecNews. “Doug Wolma has been a leading light in the reman industry for several years and we welcome him onboard,” said William Schwarck. “He will bring much additional expertise to our Panel of Judges, on the practical as well as the theoretical level, and we greatly appreciate his willingness to invest his time and vast experience in strengthening the panel.” n

Doug Wolma

COVER STORY

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Large-scale project to bring reman to the Middle East

In terms of remanufacturing, the Middle East has, for years been rather a desert. Over two generations enormous wealth from oil, “new” - cars, parts and components - have domineered markets across the region. While repair has been commonplace, reman has been virtually unknown. That could be about to change as one of America’s significant reman companies, together with a strong local partner is about to introduce

Oweis Zahran and Dave Olson

remanufacturing in a big way across the region. In July TransAxle LLC of Cinnaminson, New Jersey and OWS, Dubai’s leading parts and reman supplier, will open a joint remanufacturing facility for heavy duty reman in Sharjah next to Dubai. Over the next two years the intention is to follow up with further retail venues elsewhere in Saudi Arabia and other Middle Eastern countries, to distribute the TRANSAXLE ME reman products.

“We’re very confident that automotive and, for us, heavy duty reman is going to be big here” “We see this as a very substantial move for our business,” Dave Olsen, TransAxle’s CEO told

ReMaTecNews. “TransAxle is extremely growth focused and we believe that the Middle East offers huge potential. It may be that some American reman companies have been reluctant to look at the opportunities here but we’re very confident that automotive and, for us, heavy duty reman is going to big here. TransAxle’s expectations are, in part, built on the ongoing recovery within the construction sector in certain parts of the UAE, a growing perception of the need to preserve resources and on the fact that fleet owners, state-owned and private, are, increasingly, realising the financial benefits of using remanufacturing products. This realisation is further driven by the climate conditions of the Middle East, sand, wind and blazing heat, which are tough on vehicles. Priority on Training Initially centered on the emirate of Sharjah next door to Dubai, the partnership between TransAxle and OWS is centered on an exclusive licensing agreement in which TransAxle will license their

COVER STORY

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During the recent Automechanika trade fair, OWS Parts conducted negotiations with number of companies, including Saudi Arabia. The picture shows Oweis Zahran, with Khalid Al Muthairi and Khalid Ali Babtein of Omar Ali Babtein & Bros. Co. and Dave Olsen of TransAxle. IP and naming rights to OWS in a legal entity, TransAxle Middle East, a division of OWS. The outcome is the first large scale remanufacturing enterprise in the UAE, which Dave Olsen points out, will “serve the MENA region with high quality, competitively priced remanufactured automotive components while advancing the overarching green initiatives in the region.” Since remanufacturing is practically new to the region and in view of the growing technical complexity of transmissions training local technicians and engineers has high priority for the two partners.

of the company’s focus - and a considerable broadening of its ambitions. Founded by Oweis Zahran, an American-born Saudi and the son of the chairman of the large international trading group MZ holding Eg, Oweis Zahran decided to create a reman business in a part of the world where remanufacturing was virtually unknown. He has succeeded beyond most people’s expectations, except his own. High-level backing. “There was no lack of people shaking their

heads when I left my father’s company to go into remanufacturing,” Oweis Zahran told ReMaTecNews. “Today, I’m thankful that I did. We have been given a tremendous welcome in the market, received the backing of some very influential individuals and public institutions and every meeting I go to is a sale. At the recent Automechanika Dubai exhibition we notched up sales of several million dollars. To me, there’s no doubt that the Middle East is getting ready for remanufacturing.”

“Accordingly, we have developed a detailed strategy in which TransAxle will place a qualified leader in the Sharjah facility to lead the business,” Dave Olsen explained in a wideranging conversation with ReMaTecNews. “A comprehensive training exercise will include having four to six technicians working side by side with the TransAxle team back in the UDS while the facility is set up in Sharjah. We anticipate the training to take 90 days and we believe we can be operational this year.” OWS Established little more than two years ago, OWS has, in record time, established a position as a leading parts retailer and a pioneering supplier of remanufactured products in the United Arab Emirates, Qatar and Saudi Arabia with plans to reach the entire MENA region. Originally focusing on the automotive market, the TransAxle partnership represents an important extension

Five brothers in one company. Four of Oweis Zahran’s brothers are active in OWS Parts. Surrounding Oweis Zahran (sitting) are from left Hudaifa, Albarra, Mahmood and Talha.

COVER STORY

ReMaTecNews | 12

The Middle East - a prospective market for remanufacturers? For visitors it may be difficult to understand offhand, considering the vast number of new, nearly new or extremely well-kept vehicles on Dubai’s or Abu Dhabi’s sun-baked avenues and boulevards. Yet, annual sales of automotive and heavy-duty parts amount to more than ten billion dollars a year in Dubai alone. Predictions are that the number is set to rise very considerably over the coming years. How do remanufacturers figure in this? ReMaTecNews put the question to some representatives of foreign companies that have monitored developments in recent years. Here are their answers:

Mickey Matthews, WABCO Reman Solutions Remanufacturing is a new concept that the Middle East is looking at right now. Middle Eastern customers, however, are short of reman know-how. Because the customers are not welleducated in reman and are not sure of the quality of the products, we have to develop the supply chain ourselves. Cost is also very important to customers and many, if they have money they will prefer to buy new. Truck or fleet operators who have had huge profit margins before are becoming more careful as the cost of fuel go’s up, spare parts become more expensive, repair costs rise and even time becomes precious. This gives reman some opportunities that we follow closely.

Jürgen Stempa, Head of WAIglobal Europe Remanufacturing in the Middle East is something very new and we definitely see more interest. Governments, too, would like to see companies willing to invest in local remanufacturing. It’s not easy, however, because remanufactured products are already imported from Malaysia and Thailand, at very very low prices but still think there is quality difference. I believe that Saudi Arabia will also come into remanufacturing. As for Waiglobal, we have been in this market for many years so we know a lot of customers and yes, we’re aware that the time may have come to do something more than we do today.

Oscar Villafranca, Remaned, Spain The potential here is big because the market is growing very fast and the region has easy access to Europe, Africa and Asia. The car parks are demanding a lot of parts and, although we have to put in a great effort to explain to buyers and consumers the quality of reman, I think remanufactured goods will become important in the Middle East over the next five years.

Oscar Villafranca. Remaned, Spain

Vitobello, Italy Jürgen Stempa. WAIglobal, Europe

Harald Benninger, IKA, Germany

We’re working towards developing Asian and Middle Eastern markets, including Pakistan, Iran and Iraq. These countries are developing fast and we want to be part of the growth. We think there will be good opportunities here and we hope to bring our business here up on the same level as it is in Europe. We believe we can do that in two or three years, more or less. n

For those who want to sell spare parts rather than whole units it’s quite difficult here in Dubai and in Saudi Arabia whereas it’s easier in countries like Jordan, Lebanon and Iran where more parts are repaired than in The Emirates or in Saudi Arabia. The only products that we sell well in Dubai and Saudi Arabia are the heavy duty spare parts.

Mickey Matthews, WABCO

To be honest, I’m not certain about the longerterm opportunities but we certainly do not give up. That’s the reason why we have come here for years. We know it takes patience to develop a business here.

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CAT Reman: Serving the common good makes perfect business sense

By William Schwarck You don’t have to look back too many years before the saying “Remanufacturing is the ultimate form of recycling” was first developed - at that time by insiders of what was then a largely hidden industry. How things have changed. To appreciate the full trajectory of the progress of remanufacturing - from the historical image of oily, dirty and rusty car parts to a clean, modern, high-tech industry - you could do worse, a lot worse, than visit Jurong Industrial Park in Singapore. Here, among some of the world’s foremost manufacturing names, is the home of one of Caterpillar’s 17 reman facilities worldwide, and its second in Asia. Inaugurated in 2010, the Jurong plant is a prime example of the world’s largest remanufacturer’s commitment to reman. Covering 23,000 sq. mtrs, the building and its workforce serve as a regional source of remanufactured products for large off-highway trucks and other mining equipment, including engines, transmissions, final drives and torque converters. This reman product, the engines weighing up to 8,000 kg, is some

of the largest components remanufactured by Caterpillar every year. Sustainability Moreover, the Jurong facility represents a multimillion dollar investment - not exclusively for profit but also to demonstrate the company’s

commitment to sustainability. CEO and Chairman of Caterpillar, Doug Oberhelman, describes the company’s approach: “Caterpillar is uniquely positioned to be a leader in making this sustainable progress possible. Our commitment is long-standing because we know

Taking reman to higher levels Increasingly, the big players are asserting their influence in automotive and heavy duty remanufacturing. As political, environmental, technological and social factors continue to impact on the industry, this trend is set to continue. Accordingly, how “the big boys” act, will drive many of the developments in reman. In this series ReMaTecNews will take a closer look at how some of the world’s foremost remanufacturers face up to present and future challenges. Caterpillar, the global supplier of earth moving and mining equipment is also the world’s largest remanufacturer. We visit the groups high-tech facility in Singapore.

ReMaTecNews | 15

we can be profitable while also best serving our planet and its people by promoting the common good.” The design and operations of the Jurong facility reflect these words. The plant bristles with high-tech equipment, laboratories, well-ordered production lines and a clean working environment which recognises the fact that a particle of grit in the wrong place can ruin a USD 2,000 component. Advance salvage technologies and consistent factory processes help Caterpillar turn end-of-life core into same-as-new quality remanufactured product with a same-as-new warranty. As evidence of the care devoted to the plant’s operations, boards on the walls constantly remind everyone to pay the closest possible attention to the safety-at-work regulations. Workplace security Compared with some factories in Asia, where such a commitment to workplace safety may not always be as visible, here it is an inseparable part of working procedures. “We place considerable

Singapore offers high-tech companies a wide variety of human skills emphasis on this and we are proud of the fact that as of today we have had over 600 days [currently over 800 days] without incident,” explained Facility Manager Dan Walerius, a 30-year reman veteran, who took over daily management of the plant in 2011. “Every day is a new day and presents its own risks and we never want to be complacent.” The newest of CAT Reman’s facilities (apart from its factory at Piracicaba in the state of São Paulo in Brazil), the Jurong building itself also reflects Caterpillar’s commitment to sustainability. In 2010, the plant received the “Green Mark Gold Plus” award from Singapore’s Building Construction Authority (BCA) which annually honours the “most outstanding builders, developers, architects and engineers’ contributions toward shaping an excellent environment in Singapore.”

Facility Manager Dan Warelius, CAT Reman, Singapore, has been in the reman business for 30 years. “It’s an industry that gives a great deal of satisfaction to those that work in it”, he says. In his career Walerius has been involved in turning 400 million pounds of metal into remanufactured products. As a result, a 25 per cent reduction in energy consumption was achieved by a combination of the building’s design, the materials used and equipment efficiency, including insulated metal cladding for the façade and roof, the recycled materials used for construction and office products, and energy efficient lighting and drainage systems.

facilities, including a reman facility in Shanghai, and more is to come as Caterpillar continues to draw on the region’s opportunities. Opportunities Asked about future developments, Dan Walerius has no doubts that Asia offers huge prospects for remanufacturing in general - and for Caterpillar in particular.

Mission The full scope of CAT Reman’s operations is undeniably impressive. Last year alone, the division took back over two million end-of-life units and remanufactured over 150 million pounds of material. Altogether, the division employs a workforce of 4,500 out of the Caterpillar’s 120,000 employees. Dan Walerius himself epitomizes the results that are achievable from remanufacturing. In a lifetime in the industry, he believes that he has been involved in salvaging a total of 400 million pounds of metal. Arguably, however, CAT Reman’s importance is measured by more than the number of the people working there. “Even though we’re one of the smaller departments, we’re important to the mission and success of the enterprise,” as Dan Walerius says. “When we sell new equipment, we’re really selling the lifetime cost of these products – hopefully, multiple lives for the components. In order to bring that cost down we have to offer reman. And Caterpillar markets around 6,000 different reman products.” Strategically located in Singapore, the Jurong plant covers a huge area stretching across Asia to Australia, the centre of much of the region’s mining activities. In China alone, CAT operates 30

“People here are fast learners,” says Dan Warelius. “What I’ve seen in the two years I’ve been here shows that there is tremendous potential for reman,” he says. “Yes, there are some issues in terms of achieving acceptance, so an educational process is required where we must help countries to understand the difference between dealing with dirty old parts and what Caterpillar does here, which is high technology. I believe that’s just a matter of time. In the US, and I guess, in Europe, that process took some time. In Asia that will take time, too, but I suspect, not as long as in the US and Europe. It’s a matter of building credibility as these countries are beginning to see the many benefits of remanufacturing.”

ReMaTecNews | 16

this industry for 30 years and for me too it’s still a pleasure to go to work in the morning. Many of my colleagues feel the same way. Reman is a challenging business but, at the same time it’s very rewarding because of the pleasure you feel when you see those products go out of the door and know how much work has gone into them. Reman makes a difference and that’s why the people working in it feel good.” n

Cat Reman’s Singapore-facility turns huge worn-out axles and other heavy duty components into new. Pride One further reason for Walerius’ confidence in reman’s future in Asia is the quality of the local employees. “They are fast learners, they are very

keen to excel, they take pride in remanufacturing and they enjoy what they do,” he says. “I know they tell their friends and families that they take old things and make them new. I have been in

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“Remanufacturers must get together”

Participants in APRA’s Symposium in Milano Maritimma on the Adriatic coast received a generous welcome at Sermec’s plant in San Piero di Bagno Remanufacturers must get together! That was the clear message to some 150 international remanufacturers who gathered in the Italian seaside resort Milano Marittima for APRA’s 2014 Symposium. With attendees from Europe, USA and the Far East for an extensive program of technical and marketing presentations coupled with an exhibition, the event exemplified the rising internationalisation of the reman industry. At the same time, it brought home many of the challenges facing remanufacturers in increasingly competitive markets.

“Where are all the others?,” he asked, adding: “We need the other 75 per cent and we must reach out to make them join us. The majority of remanufacturers have been successful and, in my view, they now ought to give something back to the industry. We should all help to spread the word of who we are and what remanufacturing is, so we can speak with one voice.”

To meet them, cohesive efforts on behalf of remanufacturing is crucial. In his introductory presentation Joe Kripli, Chairman and President of APRA, the Automotive Parts Remanufacturers Association, expressed it in this way:

With some 180 attendees and exhibitors participating, the event exceeded the previous APRA Symposium/exhibition in Krakow, Poland, in 2012 by a significant margin, the organisers said. “The event’s modular format, divided between technical presentations on the one hand and more general or marketing presentations on the other, seemed to be very well received and our intention is to develop this concept further going forward,” said Peter Bartel, Chairman of APRA’s European Division. “Another conclusion is that in future we may need to set aside more time for meetings such as the “speed-dating” meetings, which we introduced in Milano Marittima.”

“We need everyone involved. On, for instance, the issue of standards, we need to set a global definition for everybody. If the reman associations don’t show the way, then others will. And we may not like that. We need to talk with one voice.” Joe Kripli pointed out that an estimated 8000 US companies are engaged in remanufacturing. Of these, however, only 2000, or 25 per cent, are members of associations such as APRA, ATRA, PERA, AERA or Mera.

Module format In a new module format, the program covered an unusually broad range of topics with presentations by Borg Automotive, BU Drive, CTDI, Amsterdam RAI, Schaeffler, Sulzer, ATP Industries Group, Litens and Sermec with Germany’s Fraunhofer Institute and the universities of Bayreuth and Berlin representing research and science. In the accompanying exhibition in Milani Marittima’s conference centre 40 reman companies and organisations exhibited their products and services. Two plant visits, to transmission remanufacturer Sermec in San Piero in Bagno and core-dealer Gobbi in Cesena, rounded off the program.

Networking during a coffee break

ReMaTecNews | 19

Interest from Japan: Yanase, Japan’s largest importer and distributor of foreign luxury cars sent Tatsumi Ebana to Europe to explore current and future trends in remanufacturing. With 4500 employees, 143 dealerships across Japan and imports of 35,000 mainly top-class vehicles such as Mercedes, BMW, Audi and CW, Yanase is now considering the opportunities for using more reman products. “Reman is becoming more popular in Japan and the recent increase in sales of foreign cars means new opportunities for remanufactured parts,” explained Ebana . “As a result we have a need for sourcing approved reman parts as well as for test equipment.”

Tatsumi Ebana of Yanase, Japan

Achille Agosti, Sandro Gobbi and Andrea Gobbi for their hospitality. Garden party at Sermec Following a well-attended visit to transmission remanufacturer Sermec’s top-notch facility in San Piero in Bagno, Sermec hosted a garden partylike reception for attendees and exhibitors – and the company’s staff - in the factory’s grounds. (ReMaTecNews will report more on this forwardlooking Italian remanufacturer in Edition 4, 2014.) Left to right: Joe Kripli, Achille Agosti, Andrea Gobbi, Sandro Gobbi and Peter Bartel Plant visit to Gobbi Long-standing core-dealer Gobbi, a well-known player in European markets, played host to the attendees at APRA’s European symposium and exhibition in Milano Marittima. After an al-fresco lunch of Italian specialities at its plant in Cesena, Andrea Gobbi, partner Achille Agosti and members of their staff conducted a tour of the plant, Italy’s largest depository of cores. Afterwards APRA USA-president Joe Kripli (left) and European Chairman Peter Bartel thanked

ReMaTecNews | 20

Litens OADs Damien Gabel Sylvia Wilhelm, and Thorsten Seibel of Litens Aftermarket Network presented the latest Overrunning Alternator Decoupler (OAD) applications to the remanufacturer market as well as the first OAD for Heavy Duty Alternators. The use of the Litens OAD avoids premature failure of belt drive components. “These trade shows are an important meeting area for suppliers and contractors in remanufacturing,”Damien Gabel said.

Relaxing at the Corecabana As at ReMaTec2013 in Amsterdam, the coredealing community (as well as everybody else) joined in the lighthearted spirit when three Brazilian dancers performed a mini-carnival. n

Joe Lombardi

Damien Gabel, Sylvia Wilhelm and Thorsten Seibel of Litens

Sonnax Joe Lombardi of USA’s Sonnax represented his company at the APRA exhibition in Milano Marittimo. The renowned Vermont-based transmission specialist offers a wide variety of components for remanufacturing torque converters, rebuilding automatic transmissions, upgrading driveshafts and protecting the driveline from over-torque damage.

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Quality in the family genes

The modern HQ of Ganzeboom in Almelo is as clean and orderly as a car showroom On a Wednesday morning in April, mechanic Edward Wind is busy fixing a Mercedes 722,6 automatic transmission on his test bench in the town of Almelo in Eastern Hollland. For him it’s not a hugely complex job and he has done it often before. Yet it requires attention and care - as most tasks do in the increasingly complex world of transmission rebuilding. Before lunch he will have completed the job as planned. Yet another remanned transmission is on its way to a satisfied customer. Edward Wind has very few returns.

gearboxes alone, 2500 newly remanufactured units leave the Ganzeboom workshops each year. And that’s not all. Parts While transmission repairs since 1968 and, from 1990, remanufacturing, was the mainstay of the business, in recent years parts supplies have become increasingly important. So much so, that parts now account for some 70 percent of

turnover with remanufacturing at 30 per cent. “But we also sell a lot of remanufactured parts,” adds Mark Ganzeboom, the oldest of the three brothers and the company’s managing director. With Ganzeboom Senior entering his seventies, Mark, Michel and Rob are now in charge of the company’s day-to-day operations. The founding father, however, still plays an active role. “He gives us advice and he is a genuine expert in transmissions. In fact, he can still rebuild a

“The challenges have always been there,” he says. “But the work is becoming even more complex all the time. You really have to pay attention and you need to use the best tools. It is not a simple task anymore - if it ever was.” The professional skills and dedication of Edward Wind and his 30 colleagues at Ganzeboom Transmissies’ plant in Almelo near Holland’s eastern border with Germany is one of the pillars upon which this Dutch transmission remanufacturer has established a solid reputation in European markets. Over a quarter of a century the owning Ganzeboom family, the founding father Ben and his three sons, Mark, Michel and Robert, have built this specialised remanufacturer and parts supplier into one of the European transmission business’ significant players. In respect of

Edward Wind

ReMaTecNews | 23

transmission, if he wants to. Yesterday he helped out with an old Mercedes. Today there are not a lot of mechanics who can do that. He is also capable of handling modern transmissions. And he has always given us three brothers his full trust“ Mark Ganzeboom says. Quality A member of both APRA, the Automotive Parts Remanufacturers Association and ATRA, the Automatic Tranmission Remanufacturers Association, Ganzeboom prides itself on delivering “quality.” Its modern HQ in Almelo (there is second workshop in Rosmalen near ‘s-Hertogenbosch) is as clean and orderly as a car showroom and all remanufactured units and parts come with extensive warranties. Asked to define “quality” Mark Ganzeboom’s reply is instant: “Talking about transmissions the all important thing is testing, testing and testing. If you don’t

From left to right: Ben Ganzeboom and his sons Mark, Michel and Rob converters, valve bodies and whole transmissions. While the name of Ganzeboom is at the heart of everything the company does, the family recognizes that without the right partners, the 35-40 people in the workshops and offices, the company would not be where it is today. “It all begins with the people,” Mark Ganzebom says. “If you have good people, you can test everything you need to. However, if you have to open a unit nine times, you cannot make money. It all starts with people. We try to employ good people - and to keep them.” Increased competition As to the future, the Ganzebooms foresee intensified competition in the transmission segment. “Yes, we will probably see more companies becoming involved in transmission

test thoroughly, you cannot be sure of the quality of the end product. I have seen very good mechanics doing very good standard procedures but, still, unless you test very carefully you can’t be sure. In our case, we always test the entire transmission on the dyno. Since we began doing that the quality of what we supply,has increased a great deal. In fact, today, if we cannot do a proper test on a transmission, we will ask the customer to bring the whole car into the workshop instead of just the transmission.” Manual and automatic transmissions In recent years Ganzeboom has increased deliveries to remanufacturers across Europe and today supplies products from Precision International, Alto, ZF, Allomatic, BorgWarner, Sonnax and Raybestos as well as a string of other brand names. In keeping with its lengthy history Ganzeboom’s range covers both manual and automatic transmissions as well as torque

rebuilding and more general workshops may begin to do transmission repairs. Other transmission companies may also begin rebuilding as the transmission business continues to develop,” he says. Not that this seem to worry him unduly. What Ganzeboom Transmissies has created over 25 years of solid, if not spectacular, expansion seems to lay an equally sound foundation for the next 25 years. “Yes, I think, what we have done so far makes us a little proud,” he admits. “However, what counts is that our customers are happy with us and we get signals that they are. That’s our goal. That’s what we’re here for.” n

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ReMaTecNews | 25

The case for HD remanufacturing

Appealing to millions of motorists, automotive remanufacturing has occupied a well-defined place in the global aftermarket for decades. Less high profile is heavy duty reman. In fact, although the numbers of “automotive” vastly exceed those of HD components, in terms of the environment HD is twice as important as automotive (cars and vans). The environmental impact, of course, is currently a key driver in the global motor industry.

Fernand Weiland That is the conclusion of Fernand Weiland, a former Chairman of APRA Europe, in a new book, “Heavy Duty Remanufacturing – the other giant.” Co-written with a group of scientists/researchers from the world of academia and insiders from the reman industry, the book presents the first general overview of heavy duty remanufacturing in Europe and provides some important pointers to its future development.

“Each year, European companies remanufacture around 22 million components for passenger cars and smaller commercial vehicles. Because of the strong focus on these types of units, however, we tend to overlook the sector, which remanufactures heavy duty components for trucks, agriculture and construction vehicles, other off road vehicles etc,” explains Fernand Weiland. “Yes, the volumes are much lower but the size and value of the components are considerably higher. I believe this is one of the key messages of the book. It shows that the heavy duty remanufacturing business is, indeed, economically and environmentally “the other hidden giant.” Big estimates The book estimates the annual number of HD units remanufactured in Europe to be around 3,590,000 units compared to 22,313,000 in the automotive segment. Outside the conventional reman industry, retreaders account for 3,800,000 “remanufactured” HD tyres. This brings the total for all three segments to 29.6 million units. Talk about “hidden giants!” No less interesting is the estimate for the annual CO2 savings arising from HD remanufacturing: Whereas total savings in the automotive segment (some 22 million units) are set at 270,000 tons, this is exceeded by the total from HD units (3.59 million units), i.e. 279,000 tons. If we include tyre retreading, the total amounts to a staggering

834,000 tons of CO2 savings! Again, the role of remanufacturing in the future of our societies can hardly be underestimated. First European Survey As far as known, this is the first research-based estimate of the European remanufacturing industry concerning heavy duty components. For those who wish to know more about HD remanufacturing as well as those who are already involved, the book reaches a number of pertinent conclusions. Prime among these are: - Rising importance: Although the extent of HD reman is not always recognised in full, the industry’s importance is unquestionable and likely to grow. There is little doubt that remanned parts offer the cheapest, most reliable form of replacement parts to keep fleets running in a segment that is characterised by high mileage, high value and considerable strain on equipment. This could perhaps be exploited better than the industry’s players are currently doing. - Outlook for growth is bright: Fleet and vehicle owners are under constant pressure to reduce costs. Being economic, reliable and of high quality, remanufactured products meet owners’ requirements because new products from OE providers are expensive and copied new units unreliable.

Annual Volume (Units)

Annual CO 2 savings (tons)

Automotive   (Cars & Vans)

22,313,000

270,000

Heavy Duty components

3,590,000

279,000

3,800,000

285,000

29,6 Millions

834,000

Heavy Duty Tyres Total

In 2012 Fernand Weiland published the book “European Automotive Remanufacturing.” He and a group of fellow experts have now followed up with “Heavy Duty Remanufacturing - the other giant.”

ReMaTecNews | 26

- Stringent regulations Vehicle manufacturers and their service outlets must ensure that vehicles meet increasingly stringent regulations and customer requirements. Produced to high standards, remanufactured products meet such objectives. Conventionally repaired products are not sufficiently reliable to satisfy these demands. - Recognition OEMs and OE component manufacturers all realise the need to fully embrace the trend towards remanufactured products. A broad range of recent activities confirm this. - Public policies Policy makers in Europe, North America and China are increasingly encouraging their populations to combat global warming and pollution. Across the world there is growing realisation that remanufacturing is a viable and cost effective way to reach these objectives. What, then, does the future hold for remanufacturers of HD components? “The open question,” says Weiland, “is how the

independent and private remanufacturers who supply the independent aftermarket, i.e. the companies that have pioneered remanufacturing, will defend their position in the market place? They are facing threats from the major players, from the large investments needed to process the components as well as from the scarce availability of OE technical

information. I believe that only independent, top performers with the financial resources and high technical expertise can survive. Alternatively, of course, they may be bought by Original Equipment Manufacturers or OE component manufacturers. There’s certainly scope for action within the HD segment for years to come. n

The authors Co-authors are a number of well-known names from the European remanufacturing industry. • Mark Bowen, ATP, on Off Highway Transmissions and their place in Remanufacturing. Giovanni Ricci of Sermec on Remanufacturing HD Transmissions & HD Power Steering. Andre Niermann of Automotive Electrical Products on Heavy Duty Remanufacturing. Stefano Carloni of AIRP Italy on Retreading/Remanufacturing Heavy Duty Tyres. Dipl.-Ing. Frank Kübler / Dr. eng. Paulina Golinska/ Dipl.-Ing. Moritz Hamacher of Bayreuth University on Sustainability Improvement of Remanufacturing Operations. Joseph Kripli, Chairman and President of APRA, on Remanufacturing Heavy Duty ABS Electronics. Dr. Daniel Köhler and Frank Merwerth of Knorr Bremse on Commercial Vehicle Systems and Prof. Dr.-Ing. Carsten Bücker & Dipl.-Ing. Clemens Ortgies on European Remanufacturing of Components for Heavy Duty Applications. For more information and orders, please contact: fernand.weiland@t-online.de

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Electric vehicles will revolutionise the motor industry One of America’s largest financial institutions is predicting dramatic changes in the global automotive industry. The changes will cut the number of global car makers from 30 to just six and will deeply affect all segments of the motor industry, including remanufacturing.

“The world has too many car companies: We cover nearly 30 auto assemblers globally across eight countries. In our opinion, the balance of economic, competitive and technological forces will ultimately consolidate this figure to five or six players.”

In a recent analysis, Morgan Stanley, one of the world’s largest financial institutions, expects the emergence of electric vehicles, especially those made by Tesla Motors Inc. in California to drive much of the change.

Pointing to California’s Silicon Valley, Morgan Stanley claims there are unique opportunities for innovation by domestic auto companies – if they know how to exploit them. The analysis, for instance, shows that BMW AG has about twice as many tech professionals at its Mountain View technology centre in Silicon Valley than all of Detroit’s automakers put together.

Radical change “We believe the radically changing landscape of autos requires a commensurate change of thinking in Detroit if the domestic OEMs, as we have traditionally known them, are to remain relevant 15 or 20 years from now,” Adam Jonas, the author of the analysis, told Detroit News.

sufficient time to adapt their culture, capital allocation and recruiting strategy to the changing forces. With proper execution, Detroit may thank Tesla Motors for being that stiff board in the back of the head right when they needed it.” n

“Tesla’s electric vehicles could either end up being Detroit’s worst enemy or its salvation,” Jonas said. “In our opinion, the disruption from Tesla comes early enough to allow traditional car makers

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Associations

APRA EUROPEAN OFFICE Neustrasse 8 458653 Coesfeld Germany P +49 2541 8006818 E Info@apra-europe.org W www.apra-europe.org

FIRM Parc Industriel, 10 B 1440 Wauthier Braine Belgium P +32 (0) 2 3660680 E secretariat@firm-org.eu W www.firm-org.eu

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Metalas Cleaning Systems BV James Wattweg 28 3133 KK Vlaardingen The Netherlands P +31 (0)10 4356036 E info@metalas.com W www.metalas.com

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Turbo Parts Gobbi Spare Parts Spa Via Capannaguzzo 3681 47521 Macerone di Cesena (FC) Italy P +39 0547 311146 E info@gobbisp.com W www.gobbisp.com

Remaned Pol. Ind. Morea Sur, 41. 31191 Beriáin - Navarra Spain P +34 948 368 775 E contacto@remaned.es W www.remaned.com

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Diesel Line Srl Via Verona 7 31046 Oderzo (TV) Italy P +39 0422 717572 E info@diesel-line.it W www.diesel-line.it

Starters & Alternators Autoenterprises Ltd. Units 5,6,14,15 Pembroke Centre, Gardiners Lane South Basildon, Essex, SS14 3HX United Kingdom P +44 (0)1268 285888 E john.snr@autoenterprises.co.uk W www.autoenterprises.co.uk

Pos Service Holland Stichtse Kade 47c 1244 NV ’s-Graveland The Netherlands P +31 (0)35 6563180 E psh@psh.nl W www.psh.nl

Arrowhead Electrical Products, Inc. 3787 95th Ave. N.E. Blaine, MN 55014 United States P (763) 255-2555 E info@arrowheadep.com W www.arrowheadep.com

Emmetec S.r.l. Sede operativa-Headquaters: via Stazione, 8 - 21020 Ternate (VA) Italy P +39 0332 9618.86 / 96 E info@emmetec.com W www.emmetec.com

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Ganzeboom Transmissies Planthofsweg 45 7601 PH Almelo The Netherlands P phone +31 (0)546-819510 E info@ganzeboom.net W www.ganzeboom.net

Melett Limited Unit N, Zenith Park Whaley Road, Barnsley S75 1HT, England P +44 (0) 1226 320939 E sales@melett.com W www.melett.com

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Vitobello Ricambi Srl. Via Luciano Lama, 28 47020 Longiano (FC) Italy P +39 0547/52839-56209 E info@vitobello.it W www.vitobello.it INFORMATION For more information please contact the ReMaTec Salesteam phone +31 20 549 14 31 advertising@rematecnews.com www.rematecnews.com Categories: Cleaning equipment Consultancy - Research Cores Environmental products Lubricants - Chemicals Organisations - Associations Parts for remanufacturers Production equipment Remanufactured products Test equipment Rates 2014: 1 placement € 160 4 placements € 610 6 placements € 875

TRANSMISSION WORLD

ReMaTecNews | 30

Remanned transmission road show sets out in Russia Autotranstech, Russia’s foremost specialist in remanufactured transmissions, is this year celebrating ten years of international seminars. One of the initiatives marking the anniversary is the launch of a road show in a number of Russian cities in collaboration with Vermont-based Sonnax, the world-wide supplier of transmission technology and knowledge.

with the large MIMS-Automechanika in Moscow. During the seminar, participants will also be able to tour ZF’s remanufacturing plant for automatic transmissions. Special occasion “As this year is a special occasion for us, we have planned a rich programm of lectures, training sessions, competitions and prizes,” Slava Bakalov

explains. “Last year presentations were given by industry experts such as Wayne Colonna ATSG, Robie Ferguson, ALTO, Robert Warnke, Sonnax, John Parmenter, Precision, and Gene Bowden of Exedy. This year the line up will be equally impressive. 150 people attended from Russia, Belarus, Kazakhstan, Moldova, Israel, Ukraine and Lithuania and the number this year is expected to exceed that.”

On a number of occasions in the past Autotranstech has partnered Sonnax in connection with seminars in Russia. “Interest in transmission remanufacturing has increased steadily as automatic transmissions have continued to gain ground in Russian markets,” Slava Bakalov, Autotranstech’s owner, Slava Bakalov told RemaTecNews. “Accordingly, we see the planned roadshow as a natural extension of our seminars. There is a significant demand for knowledge about transmission remanufacturing here and I expect the roadshow to attract much interest.” Launching in October the roadshow will take place in Moscow, Minsk in Belarus, Kazan and Ekaterinburg. As before, the tenth Autotechtrans seminar between August 23 and August 25 will coincide

Slava Bakalov, (left), with leading industry expert Bob Warnke of Sonnax.

News from Newco German transmission specialist and supplier of overhaul kits used the recent Automechanika show in Dubai to launch its latest product. The application OAW-CVT, VW/Audi Multitronic, is the result of a period of intensive work to establish the technical details for each component The company says it has great expectations for the new kit. Another one, for Mercedes 724.0 DCT, will be released still this month The supplier of a broad range of transmissionrelated products and kits for remanufacturers, Newco Autoline last year celebrated its first 20 years in business. With its new overhaul kit the company now continues its battle for right-to-repair information. As Sales Director Marcus Stephan says, this is still ongoing despite

the attempts by regulatory authorities to force original equipment manufacturers to reveal

technical details that will enable aftermarket players to remanufacture components. “Some information, of course, is available, but when you look for details within the components, in many cases you still hit a wall,” he says. “That’s why it has been necessary for us to spend a lot of time developing the kit and we’re very satisfied with the result.

Sales Director Marcus Stephan

The OAW –CVT, Multitronic application contains all available seals and gaskets and 2 sensor wheels but no piston. Newco supplies new, remanufactured and used parts for European, American and Asian transmissions as well as testing and diagnostic equipment. Overhaul Repair Kits, however, remain the mainstay of the Weyhe, Germany,-based business. n

NEWS FROM OTHER ORGANISATIONS

ReMaTecNews | 31

RIT to host 3rd Annual World Reman Summit in September

The Global Reman Summit will be held in some of USA’s greenest facilities The 3rd Annual World Remanufacturing Summit will be held at the Golisano Institute for Sustainability (GIS) on the campus of Rochester Institute of Technology (RIT) in Rochester, NY, USA, on 25-26 September, 2014. The event will bring together many of the world’s leading experts to discuss trends and results of international remanufacturing research and the latest advances in reman technology. According to 2014 Summit Chairman and host Prof. Nabil Nasr, Ph.D., “The event will be a wonderful opportunity for networking with authorities in reman from around the globe. We plan to build on the strengths of the two prior summit conferences to give attendees the most up-to-date information possible on the ever changing remanufacturing industry.” The first World Remanufacturing Summit took place at Bayreuth University in Germany in early September 2012 and was hosted by Prof. Rolf Steinhilper, Head of Manufacturing and Remanufacturing Technology, in partnership with Rochester Institute of Technology and the National Key Laboratory for Remanufacturing in Beijing, China. The collaboration between the world’s three leading remanufacturing research institutions attracted a global audience and a decision was subsequently made to rotate the events annually

between Europe, Asia and the United States. The second World Remanufacturing Summit in Shanghai in December 2013, for instance, attracted more than 150 delegates from China, the United States, Germany, Britain, Sweden, Finland and several other countries. For all Global Reman Summits ReMaTecNews is acting as media partner. Innovative building The World Remanufacturing Summit 2014 in Rochester will be conducted in Sustainability Institute Hall, the new GIS headquarters on the Rochester Institute of Technology campus. This innovative building recently earned Leadership in Energy and Environmental Design (LEED) Platinum certification from the U.S. Green Building Council - the highest standard in the rating system placing it among the top 1 percent of all green buildings in the United States today. The building is an 84,000m square-foot, stateof-the-art laboratory for scientific discovery and experiential learning, and is home to GIS master’s degree and Ph.D. programs in sustainability and architecture. Research labs, student work areas, classrooms and conference rooms, auditorium and office suites all open onto an airy, light-filled, four-story galleria. Internationally recognised as a leading centre for applied research in remanufacturing the Centre was established as a partnership between

industry, academia and the U.S. government to support industry advancement. The Centre conducts independent research on remanufacturing technologies, design for remanufacturing, logistics and policy, and business operations “Remanufacturing is advancing swiftly with the times, and the 2014 Summit will showcase our progress and potential – and the challenges reman will face in the decades to come,” Dr. Nasr said. “I urge everyone to get up to speed in this exciting time for reman. We encourage remanufacturing experts to submit ideas for presentations at the summit and we look forward to welcoming the global reman community to the Rochester Institute of Technology in September.” For more information on World Remanufacturing Summit 2014, see the conference website (http:// www.rit.edu/gis/wrs2014) n

ReMaTecNews | 32

For further news about APRA Europe, please visit www.apra-europe.org

Urban mining: Cities are future sources of raw materials By Harald Benninger Ever-higher prices for raw materials and energy call for solutions if long-term competitiveness is to be maintained. In response to these challenges, systematic steps are being taken to conserve resources and use energy efficiently. These have now become established features of commercial activities. When we look at the topic of conserving resources, we see that the concept of “urban mining” crops up more and more. The term expresses the idea that humans have created many sources of secondary raw materials, which then can be used for recycling., e.g. from civilisation’s waste products and production scrap. In addition, there are secondary raw materials that are still embedded in buildings or vehicles for instance, which can be used at a later date. Some calculations suggest that an

apartment of 100 sq.m. may contain more than seven tonnes of metals. Urban Mining This makes the idea of “urban mining” increasingly attractive, especially in cities, which have virtually no natural sources of key raw materials. The result is a paradigm shift from pure waste disposal to a recycling economy. At the moment, however, it is not yet possible to extract all secondary raw materials at prices that can compete with those from primary sources. Industry and the scientific community are therefore working hard to narrow this cost gap by means of technical innovation. Rare Earth Elements Nonetheless, for certain materials the question will no longer be about the price, in my opinion, but rather about whether they are available at all. Just think of the “rare earth elements (REE)”.

These rare metals are used more and more often, especially in the automotive industry. Yttrium is one such example. This metal provides a hard-wearing surface in spark plugs. In catalytic converters it is used to ensure that the catalyst metals maintain their shape even at temperatures above 1,000 degrees. In lambda oxygen sensors it is only the use of yttrium that ensures the ceramic used remains permeable for charged oxygen atoms. Over the last six years the prices for some rare earths have gone up by a factor in excess of forty. Although the price spiral currently seems to have stopped, prices are expected to stay high for the foreseeable future. This trend is also visible in other raw materials, particularly metals. In my industry, automotive electrics, we observe this tendency first hand, e.g. in copper prices., where one ton of copper now costs around €5,000. Five years ago the price was well below €3,000 a tonne. With these price rises and increasing demand it is obvious that in future it will be worth “prospecting” for metals and minerals in rubbish dumps or abandoned buildings. This, in turn, could make “urban mining” as natural for future generations as recycling glass and paper is for us today. Reman in practice To sum up; if we take the term “urban mining” to mean innovative processes to conserve resources, save energy and promote a recycling economy, we can say with confidence that for more than 70 years (APRA was established in 1941), remanufacturing has been “urban mining” in practice. n

Harald Benninger

VISIT US AT AUTOMECHANIKA

Frankfurt, Stand D63 Melett, the market leader in quality replacement turbocharger parts, will be showcasing an extensive range of turbo parts, repair kits and VSR balanced CHRA, along with demonstrating one of the most comprehensive turbocharger databases in the world.

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ReMaTecNews | 34

Learning is the road to succes This old adage is being taken seriously, indeed, by GMY, Turkey’s Association of Engine Remanufacturers and one of FIRM’s active, national members. Inspired by the country’s rapidly developing motor industry and booming car sales, GMY is now launching a major initiative to encourage Turkey’s next generation to see remanufacturing as a future career choice. Considering that hundreds of thousands of young people will arrive in the job market over the next few years, the GMY initiative could have a strong impact. “There will be a clear need for bringing young people into the motor industry over the next many years and we would like to see some of them go into remanufacturing,“ says Emre Can ÇiÇin, GMY’s general manager. “We believe that helping with this, is a way of demonstrating our social responsibility and, at the same time, helping to move remanufacturing forward in Turkey.

Turkish students with their course books Emre Can ÇiÇin is talking about the association’s project “Automotive Electromechanic Technology” under which GMY is distributing more

than 5000 course books for high school students across Turkey free of charge. Written by GMY trainers, the books will be accompanied by 24 seminars about “Engine Failure Analysis and Engine Remanufacturing” nationwide. “In our opinion, we have to do such basic basic work at a very early stage of young students’s lives in order to keep engine reman technologies alive and provide independent remanufacturers with motivated youngsters in order to prepare them for future market requirements,” explains Emre Can Cicin. Emre will be pleased to help anyone who wishes to learn more about the Turkish project, perhaps with a view of making use of the idea in their own associations He can be reached at emrecicin@ gmy.com.tr n

From left to right: Headmaster Özcan Bedel with one of his students at the first training session at their school in Marmara, Salih Horoz, owner of GMY Marmara Akademik Engine Rebuilding facility and Emre Can Cicin. General manager, GMY.

ReMaTec Events

ReMaTecNews | 35

BigR/ReMaTecUSA likely to be sold out by the summer The largest reman exhibition in 2014, Big R/ ReMaTecUSA, reports interest shown by the industry running well above expectations. in early June, 5 months before the event in Las Vegas, more than 95 per cent of the show floor has been signed up by exhibitors. At the time of writing, less than 5 booths remain for the show from November 1, 2 and 3 at the Rio and Convention Centre in Las Vegas. Sales Manager Ewoud Barink expects these to be booked within the next few weeks.

“The number of exhibitors that have signed up are significantly exceeding our expectations,” Barink said. “The 2014 edition is set to double its size compared to last year. Considering this is a new venture in the reman industry, we’re very satisfied, indeed.” The Big R/ReMaTecUSA show, which succeeds the longstanding APRA Big R show is a collaboration between APRA, the Automotive Parts Remanufacturers Association, and Amsterdam RAI, the European organisers of the biennial ReMaTec shows in Amsterdam, The

Netherlands. Amsterdam RAI, which also owns the trade magazine ReMaTecNews, has hosted the ReMaTec exhibitions since 2001. “One interesting aspect of the bookings so far is the interest shown by European and other overseas exhibitors,” says Ewoud Barink. “Until now 33% of the registered companies are international with well-known European companies like Autoenterprises, Melett, Emmetec & O.R.P.A.V., Pos Service Holland, and KARDES Elektrik among them.” n

Discounted rates at RIO Hotel Special room discounts will be offered by the RIO Hotel and Convention Center for exhibitors and visitors of our show. For more information and direct bookings, please check our website: www.bigrrematecusa.com n

14 -16 June

2015

For more information: www.rematec.com

PEOPLE ON THE MOVE

ReMaTecNews | 36

Aftermarket development role at SMMT Remanufacturing has an important role to play in the UK aftermarket and could yet become more significant thanks to the benefits it brings to members of the Society of Motor Manufacturers and Traders, says the new Aftermarket Development Manager at SMMT, the UK’s Society of Motor Manufacturers and Traders. Peter Lawton takes over a role vacated by Wendy Williamson, who has moved to the Independent Automotive Aftermarket Federation (ReMaTec News No.2 Vol 14). After three years as editor of one of the UK’s leading automotive trade magazines Lawton has previous form as an investigative journalist on automotive publications for the consumer market. He has a track record when it comes to

common-sense straight talking about the issues that matter to the independent aftermarket. He has a clear view about the positive influence that remanufacturing can offer the automotive sector as a whole:

growing opportunities for existing and prospective members thanks to its close ties with industry and government.” n

“It helps to reduce CO2 emissions, offers workshops and end consumers a high-quality and economical solution for maintenance and repair and makes a positive contribution to the economy by supporting skilled UK jobs in manufacturing,” he said. Peter Lawton’s new role will involve discussions with representative bodies and politicians, so a high degree of diplomatic awareness will be required: “SMMT works closely with CLEPA on a European level to promote the sector and is confident of

Peter Lawton, SMMT

New Executive Chairman at CARDONE Industries Michael Cardone Jr. who, with his family, owns CARDONE Industries, the largest privately-held remanufacturer of aftermarket automobile parts in the world, is leaving - and staying! This apparent paradox is explained by Michael Cardone’s decision to relinquish the position as Chairman of the company that bears his name while continuing as a Owner, Director and, in addition, Chief Strategy Officer. As Chairman Michael Cardone Jr. will be succeeded by Terry McCormack, who comes to CARDONE with more than 40 years of experience in the auto aftermarket

industry. Most recently, Terry McCormack retired as President and CEO of Affinia Group Inc., where he led the group’s global transformation. “We are excited to have Terry as part of our team. His leadership, experience and values have made a great contribution to our Board of Directors and our company,” said Michael Cardone Jr. “Our family looks forward to working with Terry in his new role as Executive Chairman as he continues to build the Cardone culture of servant leadership. He is a great industry leader, professional and friend.” n

Terry McCormack, Executive Chairman of Cardone Industries Inc.

Co-founder retires from BBB Bruce Bigler, one of the company’s founders, has chosen to take early retirement from Alabama-based, BBB Industries LLC. Bigler has been instrumental in building BBB into one of America’s most important remanufacturers of starters, alternators, brake caliper and power steering products for both automotive and heavy duty applications. Bruce Bigler says he leaves BBB for personal reasons and wishes to spend more time with his young family. “Bruce has been an exceptional leader and contributor to the company’s development,” said BBB CEO Joe Felicelli. “From the company’s founding in 1987, as a small family business, to its

position today as a major North American supplier of remanufactured products, Bruce has been part of that, every step of the way. We wish him all the best.” At the same time BBB has announced appointment of Christine Whitfield as senior president of marketing with responsibility all of the company’s product management marketing related activities. n

the vice for and

Bruce Bigler, co-founder of BBB

ReMaTecNews | 37

UK core dealers to honour the late Keith Wilson Although his death occurred more than seven years ago, Keith Wilson, the founder of wellknown electrical core dealer K. Wilson in Hampshire in southern UK, remains a much respected name in the British reman industry. To recognise his achievements, a group of former colleagues, partners and competitors together with John Wilson, Keith’s son and successor, are now issuing invitations to a charity golf tournament in his honour. Named The Keith Wilson Charity Golf Tournament, the event will take place at the Warwickshire Golf & Country Club, Leek Wootton near Warwick in central England. The date is Thursday 4th September 2014 and all proceedings will go to the Countess Mountbatten Hospice Charity, which cares for cancer sufferers in the final stages of their lives. Established by the wife of the World War II hero, Lord Mountbatten of Burma. the

charity cares for more than 3,000 patients with life-limiting cancer in Hampshire, Keith Wilson’s home county, every year.

andy@autoenterprises.co.uk. The event’s sponsors include K Wilson Ltd, Autoenterprises Ltd and Eurolec Components Ltd. n

Raising the professional level “Throughout his life Keith Wilson was instrumental in raising the professional level of electrical parts core dealing in the UK and therefore played an important role in our industry,” said John Collins, head of AutoEnterprises in Essex, London, and one of the people behind the initiative. “Yes, we were competitors but in a professional and friendly manner and I’m delighted to be part of an event that celebrates Keith’s life. We hope to see as many golfing remanufacturers as possible as well as others from the reman industry on the day.” The practicalities in connection with the tournaments are in the hands of AutoEnterprises’ Andy Dowsett, who can be reached at:

The late Keith Wilson (left) with John Wilson

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• APRA: Change at the top

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www.rematecne

Join us at the automechanika in Frankfurt, Booth L64 or visit our website: www.leitenberger.com

The no. 1 news magazine dedicated to Automotive and Heavy Duty remanufacturing worldwide. Be in time to make your reservation for the upcoming edition! For advertising or more information, please contact your Sales Manager

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Ewoud Barink Tel.: 0031 (0)6 5144 8367

Or email to: advertising@rematecnews.com Closing date edition 4: 25 July 2014 your company – more exposure – more leads

INTERNATIONAL EVENTS & TRADE FAIRS

10/07 - 13/07/2014

ReMaTecNews | 38

08/10 - 10/10/2014

SAAS - Seoul Auto Salon & Seoul Auto Service

TRANSEXPO

Seoul | Korea (Republic)

The International Fair of Public Transport. Kielce | Poland 16/10 - 19/10/2014

16/07 - 18/07/2014 PAACE AUTOMECHANIKA MEXICO CITY - International Trade Fair for the Automotive Industry. Mexico City | Mexico

21/07 - 23/07/2014

AUTOSHOW NITRA International Exhibition for Passenger and Commercial Vehicles and Accessories Nitra | Slovakia

CAPAS CHENGDU - Chengdu International Trade Fair for Automotive Parts and Aftermarket Services. Chengdu | China (PR)

20/08 - 23/08/2014 LASTBIL International Trade Fair for Road Haulage and Transport. Jonkoping | Sweden

25/08 - 28/08/2014

19/10 - 21/10/2014 CIAPE China International Auto Parts Expo Shanghai | China (PR) 21/10 - 23/10/2014

ECARTEC / MATERIALICA / SMOVE 360°

Moscow | Russia

International Trade Fair for Electric & Hybrid Mobility/Lightweight Design for New Mobility/ Car IT. Munich | Germany

03/09 - 05/09/2014

22/10 - 24/10/2014

EXPO RUJAC

SAECCE / CAEMEX

Automotive-Parts and Spare Equipment Exhibition. Guadalajara | Mexico 06/09 - 14/09/2014

SAE-China Congress & Exhibition / China Automotive Engineering and Manufacturing EXPO Shanghai | China (PR)

MIMS AUTOMECHANIKA MOSCOW

CDMS - CHENGDU MOTOR SHOW International Exhibition for Automobile and Accessories. Chengdu | China (PR) 16/09 - 20/09/2014

23/10 - 26/10/2014 AUTO E MOTO D’EPOCA Classic Car and Motorbike Exhibition Padua | Italy

AUTOMECHANIKA FRANKFURT Frankfurt/Main | Germany

24/10 - 26/10/2014 PS SHOW UND AUTOSALON WELS

25/09 - 02/10/2014

Wels | Austria

IAA NUTZFAHRZEUGE Commercial Vehicles. Hanover | Germany

24/10 - 26/10/2014

25/09 - 27/09/2014

TBILISI AUTO SHOW/CAUCASUS AUTOSHOW

AUTOWORLD. SARATOV Saratov | Russia

26/09 - 28/09/2014 AUTOFEST (AUTOMARKET AUTOSALON) Automotive Exhibition. Kishniev | Moldova

27/09 - 05/10/2014 SALON DES VÉHICULES DE LOISIRS Leisure Vehicles Exhibition Paris | France

International Specialized Fair of Automobiles, Auto Business, Spare Parts, Auto-cosmetics Tbilissi | Georgia 28/10 - 31/10/2014

AUTOSERVICE.MECHANICS. AUTOCOMPONENTS International Automotive, Garage Equipment, Automotive Spare Parts and Accessories Exhibition. Minsk | Belarus

01/11 - 03/11/2014 BIGR/REMATECUSA

04/10 - 19/10/2014 MONDIAL DE L’AUTOMOBILE International Paris Motor Show Paris | France

The No 1 reman show in North America Las Vegas | USA

CHARITY GOLF DAY The Keith (Tug) Wilson Charity Golf Tournament Fourball Entry Fee £275.00 — Price includes bacon butty and coffee/tea on arrival, 18 holes on a championship golf course + 3 course meal. Charity Raffle and Auction to be held after the meal. — If you would like to sponsor a hole, provide a Raffle/Auction Prize or even have your logo on the golf balls then please contact; Andy Dowsett @ Autoenterprises Ltd Tel: +44 (0) 1268285888 Email: andy@autoenterprises.co.uk — P.S If you are thinking of stopping over for the night the hotel that people will be staying at will be the Hilton Hotel in Warwick, Stratford road, Warwick CV34 6RE Tel: +44 (0) 1926499555

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CHARITY GOLF DAY The Keith (Tug) Wilson Charity Golf Tournament In memory of the late Keith Wilson who was instrumental In the emergence and growth of electrical core — Date: Thursday 04 September 2014 Venue: The Warwickshire Golf & Country Club Leek, Wootton, Warwick, Warwickshire, CV35 7QT — A golf tournament in memory of Mr Keith Wilson in aid of : Countess Mountbatten Hospice Charity — Contact Andy via email: Andy@autoenterprises.co.uk

For more details see other side of this page.