REMANUFACTURING INTERNATIONAL
APRIL 2015 | NO 2 | VOLUME 15
Gearing up for ReMaTec2015 The world’s largest reman show
Fahrzeugtechnik Hetzel: New life to transmissions
Autosports require reman for succes
Ellen MacArthur Foundation in reman www.rematecnews.com
CONTENTS
ReMaTecNews | 3
14 | From scratch to global supplier
18 | Preparing for the top reman show of 2015
22 | Powerful lobbying for a sustainable future
You could say that a failing transmission requires a doctor rather than a mechanic. That, at least, is the thinking behind the growth of German transmission specialist, Hetzel Fahrzeugtechnik. With strong focus on the most up-to-date equipment, the company has built a healthy business within Germany as well as in the wider world.
Amsterdam RAI, one of Europe’s major convention centres, is gearing up for ReMaTec2015. Scheduled for June 14-16, the show is set to become the largest ever. A special section provides news, information and guidance for what promises to be the year’s most important remanufacturing show by far.
In 2005, 28 year-old Ellen MacArthur won worldwide renown as the first woman to circumnavigate the globe alone. Since then, her Ellen MacArthur Foundation has become an international powerhouse for sustainability and resource conservation. We talk to the foundation’s CEO.
“Remanufacturing is really quite an under-utilised tool in the economy.” Andrew Morlet, CEO Ellen MacArthur Foundation
www.rematecnews.com
Page 22
Editorial
4
Singapore towards a reman future
5
OEMs – new focus on engine reman
7
World Reman Summit returns to Europe
10
Corteco
12
Ellen MacArthur Foundation
22
Heavy Duty World
28
APRA News
31
FIRM News
35
International exhibitions and events
38
In 2015: 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 April 2015 | Number 2 | Volume 15 Published by Amsterdam RAI B.V. P.O. Box 77777, 1070 MS Amsterdam The Netherlands In association with
Editor-in-Chief William Schwarck Phone +44 (0)778 652 8435 editorial@ReMaTecnews.com US Correspondent Denise Rondini Office +1 (0) 773 334 5740 Cell +1 (0) 773 951 8563 drondini@gmail.com
On the final stretch As will be evident from the following pages, preparations for the reman event of the year, ReMaTec2015 in Amsterdam in June, are advancing rapidly. By the time the exhibition opens on June 14, further additions to an already compact programme will undoubtedly have been announced. Nevertheless, at the time of writing (early March), it’s clear that the ReMaTec concept now occupies a key position on the agenda of the global automotive and HD remanufacturing industry. No other event offers a similar, broad range of activities or, indeed, the same opportunities for networking as the biennial exhibitions in the Netherlands and their more recent, annual addition, BigR/ReMaTecUSA in Las Vegas, Nevada. Since ReMaTecNews is owned by Amsterdam RAI, the same company that owns and organises the ReMaTec shows, some might be tempted to think of the magazine’s endorsement of the show as inevitable, even biased. Perhaps this is understandable – but only to a point. The reality is that the expanding, international remanufacturing industry needs meeting points, networking opportunities, venues for exchanging news, views and experiences - and that’s what the ReMaTec shows offer. In respect of global reach nothing even comes near. Of course, on their own, no show organiser or trade association can guarantee the success of their events. They can establish the proper framework, ensure top-notch facilities, inspire exhibitors and visitors alike. Ultimately, however, the industry’s players hold the key to their own success on the show floor. Are they capitalising on all available means to attract visitors to their booths? Are they making sufficient use of the organiser’s back-up teams to promote themselves and their booths? Do they take part in their trade association’s efforts to publicise the message of reman? Some do. Others to a lesser extent. This is worth reflecting on as ReMaTec2015 approaches. Obviously, the future will bring other opportunities. But none of them is so close and offers so much for so many as the upcoming show in Amsterdam.
Marketing Communications & PR Sanne van Dartelen Phone +31 (0)20 549 3061 s.v.dartelen@rai.nl Advertising Sales Ewoud Barink Phone +31 (0)20 549 1431 Fax +31 (0)20 549 1889 advertising@ReMaTecnews.com Publisher Niels Klarenbeek (responsible under Dutch Press Law) n.klarenbeek@rai.nl Production & Artwork Maaike van Dijk Phone +31 (0)20 549 1653 m.v.dijk@rai.nl Design Jenb, Graphic design, Hilversum, The Netherlands www.jenb-online.nl Printing SDA Print + Media Copyright Amsterdam RAI, 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, photocopying, or otherwise, without the prior written permission of the publisher, Amsterdam RAI B.V. Subscription magazine and e-newsletter www.ReMaTecnews.com Change of address 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.
William Schwarck, Editor-in-Chief
News
ReMaTecNews | 5
Singapore towards a reman future Having established its Advanced Remanufacturing Technology Centre, ARTC, in a temporary building in the Clean Tech Park in the Jurong district in 2012, Singapore has reached a further reman milestone. With strong government as well as industry participation, the ARTC recently celebrated the inauguration of its new, multimillion dollar building. The first in Asia dedicated to testing and developing reman technologies, the ultra-modern centre aims at positioning Singapore at the forefront of remanufacturing in the region. “We’re hoping to act as a catalyst in two areas creating solutions for our member companies and generating new opportunities for companies,” David Low, ARTC’s CEO told ReMaTecNews. “Some of our visitors already talk about the new facility as “a factory of the future”. It’s modern, it’s clean, it’s well organised, and that in itself can also be an attraction. Besides, one of the benefits of ARTC is creating and nurturing talent.”
“Singapore’s government attaches enormous importance to the manufacturing sector and we’re confident that with its new high-tech HQ, ARTC will play an important role in servicing both large international groups as well as SMEs in the region,” David Low added. During the inauguration ceremony, S. Iswaran, Second Minister for Trade and Industry and Home Affairs, emphasised the Singapore government’s commitment to remanufacturing. “ARTC will be a game changer for the remanufacturing sector in Singapore,” he said. “It seeks to develop capabilities, which will help companies in the aerospace, oil and gas, energy and automotive industries tackle the high component costs through remanufacturing.”
promising business opportunities for Singapore companies,” Minister Iswaran said. Since the ARTC programme was first unveiled in 2012, the ARTC has welcomed 29 members including such global players as EOS GmbH, IHI Corporation, Rolls-Royce PLC, Singapore Aero Engine Services Private Limited (SAESL), Siemens Industry Software, and SKF. The members also include 12 local SMEs. n
World-wide focus “A worldwide focus on environmental sustainability and the resulting quest for solutions have led to a rapid growth in remanufacturing and clean technology, both of which present
David Low, CEO ARTC
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News
ReMaTecNews | 7
Engine reman at OEMs on the rise UK-based engine manufacturing and engine remanufacturing specialist Autocraft Drivetrain Solutions says OEMs are accelerating their commitment to engine remanufacturing processes. Co-owner and Commercial and Engineering Director Mike Hague-Morgan says that in 2014, all of its OEM customers increased resources to support engine remanufacturing - some significantly. “They genuinely want to promote reman and gain the environmental benefits that remanufacturing provides,” Mike Hague-Morgan told ReMatecNews. The latest engines are smaller and lighter and increasingly more difficult to remanufacture, but he says it is very encouraging that OEMs are planning to support the remanufacturing processes involved. “We have over 10 projects running where we are working with different OEMs to develop
remanufacturing specifications, processes and solutions for future engine designs,” he stated. Changing perceptions The key to these processes is the use of Plasma Transferred Wire Arc technology to recover cylinder bores. Autocraft has invested around 2.5M Euros in the technology at its Grantham manufacturing plant. “Investment like this is opening eyes to a new cleaner, more modern and sustainable industry,” Mike Hague-Morgan said. “It is helping to change perceptions that engine remanufacturing is dirty and uses old technology.“ The downsizing revolution in engine and powertrain design is being driven by the need to reduce emissions and increase fuel economy. It means some well-established OE engine facilities and engine families that have been the main stay of production in both the UK and Europe for the past decade or more - are coming to the end of their lives and are being phased out. n
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ReMaTecNews | 9
BBB brings in SRC’s Tim Roth Tim Roth, a prominent figure in the international remanufacturing industry and current Chairman of APRA, has joined one of America’s largest starter and alternator remanufacturers, BBB of Alabama. With effect from February 21, Tim Roth has started at BBB as Executive Vice President for Business Development. The move signals a desire on the part of BBB to grow its international business outside of North America at a faster rate. “I’m excited to join a major remanufacturing organisation with a proven track record and exceptional growth opportunities,” Tim Roth told ReMaTecNews. ”My new role will include focusing on global strategy development and M&A activities. BBB has a strong and growing team with ownership and management that is focused on increasing remanufactured product offerings and the remanufacturing industry.” Until his appointment, Tim Roth served as
President and General Manager of SRC Power Systems, a division of SRC Holdings in Springfield, Missouri where, over the past several years, he held a number of managerial positions. He was elected Chairman of APRA, the Automotive Parts Remanufacturers Association, in November and will continue in the role until November 2015. BBB is one of America’s largest remanufacturers of starters and alternators, brake calipers and steering pumps with remanufacturing facilities in Reynosa, Mexico, and Sparta, Tennessee. Late last year the long-standing family firm, founded and owned by the brothers Don and Bruce Bigler, was acquired by Pamplona Capital Partners, a large US private equity firm. Change of CEO In a further move, BBB Industries has announced that its CEO since 2009, Joseph Felicelli, has chosen to step down to pursue other interests. Felicelli will be replaced by Don Bigler on a temporary basis. “Joe led our company through a period of tremendous growth and helped to
Tim Roth – from SRC, Missouri, to BBB in Alabama transform the business into the pre-eminent supplier of remanufactured auto parts in the industry it is today,” Bigler said. “We are indebted to Joe for the footprint he has left on the business and wish him nothing but the best in his future endeavours.” n
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World Remanufacturing Summit returns to Europe
The World Remanufacturing Summit 2014 in Rochester, New York Three years after its debut in Bayreuth, Germany, in 2012, the World Remanufacturing Summit is returning to Europe. Following stopovers in Beijing in 2013 and Rochester, New York, in 2014, the event has now established itself as the world’s prime meeting place for executives and specialists from the reman industry and the scientific world that supports it. The fourth summit will take place on June 16-17 during the ReMaTec2015 reman show at the RAI Congress Centre in Amsterdam, which takes place 14-16 June. One example of the high-level speakers attracted by the World Reman Summit in Amsterdam is 45 year-old Diplom-Ingenieur Moritz Poremba, Head of Remanufacturing at BMW in Bavaria. As one of the conference’s keynote speakers, Moritz Poremba will give a presentation on the global car-maker’s remanufacturing operations and its vision for reman’s future role at BMW. “We’re extremely pleased to announce Mr. Poremba’s participation,” says Professor Rolf Steinhilper, Head of Manufacturing and Remanufacturing at University of Bayreuth, the co-founder organiser of the fourth World Remanufacturing Summit. “The objective of these conferences, which are now firmly established world-wide events, is to bring together
representatives from the world of science and academia with people from within the industry, who have the capacity to influence future developments. Based on the experience from the three previous summits, the concept is now gaining considerable support across the world. “The summits have now reached a stage where we can take a real in-depth look at critical, even controversial issues relating to the strengths, weaknesses, opportunities and threats in the remanufacturing industry worldwide,” says Rolf Steinhilper. Running over two days World Reman Summit will feature a broad range of speakers in a number of plenary, industrial and research sessions. Topics comprise resource efficient remanufacturing, automotive OEM remanufacturing, automotive IAM remanufacturing, reverse logistics, medical equipment and design for remanufacturing. A partnership between Bayreuth University in Germany, Rochester Institute of Technology in New York State and the National Key Laboratory for Remanufacturing in Beijing, the summit aims to strengthen links between the reman industry and the world of science and research. These annual events rotate between the three leading scientific institutions in Europe, Asia and the United States, with ReMaTecNews as media partner for the summit. n
Keynote speaker Since joining BMW in 2013, Moritz Poremba, currently head of remanufacturing at the BMW works in Landshut, Bavaria, has held a number of responsibilities with the German car-maker. These include supply chain management, production support, multi-project management and in-house consulting as well as product and process planning.
Moritz Poremba, BMW
ReMaTecNews | 12
(Power) Steering a new course
Chris Petronella demonstrates VCarSys to remanufacturers Take 45 hydraulic power steering (HPS) remanufacturing specialists from 25 different companies, mix them all together at the prestigious Morgan Car plant in the UK, introduce a new piece of test equipment for electric power steering (EPS) systems, then add forecasts about current market trends. What do you get? “The recipe for a new revenue stream and opportunities for a brighter remanufacturing future,“ says Kidderminster-based seal kits distributor Auto Suppliers Ltd (ASL). ASL is best known as the UK and European distributor of seal kits for remanufactured HPS units. It was acquired last year and is now owned by Corteco, the aftermarket distribution arm of the world’s largest OE seal manufacturer, Freudenberg Group. In the US, Africa, South America and Austral-Asia, these seal kits are distributed to remanufacturers by Corteco’s sister company, TransTec. Among this invited group of traditional HPS remanufacturers, experience of the EPS remanufacturing technology ranged from ‘none’ to ‘some’. Successfully marrying a traditional approach to vehicle manufacturing with the
latest on-board vehicle systems technologies, the Morgan location was seen as a perfect fit.
“There has been a 5.9% reduction in traditional HPS fitment at OE, while EPS is growing by 13.4% a year. It’s a market that will continue to grow.” Remanufacturers know that HPS pumps drain power from the engines increasing fuel consumption and raising emission levels - especially in vehicles at low speeds in traffic around towns. EPS is the inevitable upgrade. Corteco’s general manager Martin Jones told them: “There has
been a 5.9% reduction in traditional HPS fitment at OE, while EPS is growing by 13.4% a year. It’s a market that will continue to grow.” In fact electric power steering will eventually eclipse hydraulic systems as the OE system of choice. At the UK launch of a programme set for worldwide distribution, ReMaTecNews learned about some business options for remanufacturers. Problems for HPS remanufacturers The problem HPS remanufacturers have faced is how to get into the market if they cannot test the units they have just repaired. “The key to EPS remanufacturing is diagnosing the problem and confirming that a repair has been effective, says Chris Petronella, Corteco product development manager responsible for EPS. “VCarSys becomes the car on the test bench. Once the EPS unit is attached, it replicates the response of the car, providing those two vital capabilities.” Gary Brunwin, of Bristol-based Western Power Steering, spoke for several remanufacturers present: “While we have developed some of our own test bench equipment, there is a limit to what we can do ourselves. We have to buy-
ReMaTecNews | 13
in something at some point.” ASL says the EPS package is a complete solution. Investing in VCarSys, can also give access to complete electronic housing units, or the PCBs, capacitors
and torque sensors required for in-house repair. Technical support and - if required - access to an initial range of service exchange EPS units will also be available. “It’s a complete market-entry
solution. They can be up and running tomorrow if they wish,” says Chris Petronella. n
Mike Lovering, Regal Group, Leicester
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Important to be involved “We’ve been in HPS for 40 years, supplying garages and motor factors. We are already registering demand for remanufactured EPS units. If this is the start, it’s important to be involved”
Opportunities “We have started to stock EPS and have already remanufactured a lot of the units. What we needed to be able to do was to test it. The VcarSys equipment provides the opportunity to do that.”
Faulty torque sensor “I won’t go into EPS unless I can test the units. I brought along a piece of faulty equipment with me, to see if they could test it and see what faults would show up. Under test, they proved that the torque sensor was faulty.”
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ReMaTecNews | 14
Supporting the customer is key by Doris Schulz Some might call him a doctor specializing in sick transmissions. It’s certainly true that Edgar Hetzel specializes in getting ailing transmissions up and running again – up from the sickbed, so to speak, and on to a new life. Edgar Hetzel has done it for years – and along the way, the company bearing his and his brother’s name has become one of Germany’s respected transmission specialists. “Repairing or rebuilding automatic transmissions in a way that satisfies customers has always been a challenge. However, dealing with modern models such as dual-clutch gear systems, continuously variable transmissions and all-wheel-drive transfer cases is becoming ever more complex. You really have to keep up with the latest technology and you need to use state-of-the-art equipment,” says Edgar Hetzel. No-one can dispute that he knows what he is talking about. For almost a quarter of a century, he and his brother, Ulrich, have owned and run Fahrzeugtechnik Hetzel – as technical and commercial directors respectively – since founding the business in the early 90s. Headquartered in Ubstadt-Weiher in the state of Baden-Württemberg in southern Germany, the company has established itself as a leading transmissions remanufacturer and supplier of parts for automatic transmissions in Germany. More recently in other parts of the world, too. About 600 newly remanufactured transmissions and 2,500 rebuilt torque converters leave the Hetzel workshop in Ubstadt-Weiher every year. And that’s not all. While transmission repair and remanufacturing was the mainstay of the business from the beginning of 1993, since 1998 parts supplies have become increasingly important. “Today parts account for some 70 per cent of our turnover and remanufacturing for 30 per cent,” Ulrich Hetzel explains.
Brothers Edgar and Ulrich Hetzel have built a strong transmission business we got from our father,” recalls Ulrich. “At that time, many American soldiers were still stationed in Germany and our idea was to distribute transmissions rebuilt by other companies mainly for US cars,” Ulrich Hetzel explains. However, things did not work out the way the brothers had planned. Many of the purchased transmissions had quality problems and Edgar was required to fix them. As a result, the Hetzels stopped buying transmissions and started rebuilding themselves. A wise move as it turned out. Since there were no part suppliers in Germany, they needed to go elsewhere to look for reliable sources for parts. By chance the Hetzels met Neil Joseph,
the then owner of Sonnax, who invited them to the United States and introduced them to some major suppliers. When Hetzel built an inventory considerably larger than those of other German remanufacturers, it didn’t take long before other rebuilders started buying parts from it. Working in the office and not being involved in production, Ulrich Hetzel then came up with the idea of starting a parts-distribution business to generate more income. Growth beyond German borders As both sides of the business grew, they were forced to move into bigger premises in 1995 and
Know-how and flexibility The Hetzel brothers founded the business in 1993 following the demise of what was then Germany’s largest transmission rebuilder for whom Edgar had worked as rebuilder and workshop manager. At the time, Ulrich was a part-time software engineer and a student of business information systems. Based on their combined skills, they joined forces to create Fahrzeugtechnik Hetzel. “We saw big business potential in the repair and rebuilding of automatic transmissions and both invested 15,000 German marks (US$ 8,500) which
Edgar Hetzel speaking at presentation
ReMaTecNews | 15
increase their staff. Today, Fahrzeugtechnik Hetzel employs 28 people, including two mechanics who will celebrate 20 years of employment this year.
“It is also clear to us that it will become more important to create networks with other companies in the industry in order to share knowledge and to create winwin solutions for all parties involved.”
Hetzel’s modern head office At the end of 2012, Hetzel relocated to a new purpose-built building, which includes a spacious workshop, a repair shop, offices and showroom as well as a high-bay warehouse. The warehouse now stores more than 5,000 parts in addition to some 300 remanufactured transmissions and 1,000 gearboxes which await rebuilding. “We purchase our spare parts either directly from transmissions and vehicle manufacturers or from suppliers,” Ulrich Hetzel explains. “This means that we are able to supply OEM parts for almost all automatic transmissions to remanufacturers, wholesalers and workshops across the world. In
many cases, we can deliver within 24 hours.” The ongoing expansion of the business, of course, is helped by the fact that over time, the Hetzels have set up branches in Velden near Berlin, Brumath in France, Arad in Romania and Naples in Italy. Moreover, Fahrzeugtechnik Hetzel has business links with a number of distribution partners around the globe. A further key to the growth of the parts business is the comprehensive support offered to customers, including the fact that all remanufactured automatic transmissions, torque converters, valve bodies, mechatronic units and other parts come with extensive warranties.
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ReMaTecNews | 16
Dedicated to quality This reflects the fact that Fahrzeugtechnik Hetzel prides itself on the quality of the services provided – in the parts department as well as in the remanufacturing division. This is evident as soon as any visitor enters the workshop. Clean and orderly – it could be said to resemble a doctor’s surgery. Throughout, the workshop is equipped with modern machines, such as Hydra-Test, Dynamometer, Blue Reach and Autologic Diagnostics of which many have backups to ensure reliable production even if one machine were to break down. “For some of the manufacturers we are also a distribution partner and support them with our work experience to optimize their systems,” Ulrich adds. As a result, the Hetzels have deliberately created a pleasant work environment - one that promotes performance as well as job satisfaction. “Our kind of work must be done by motivated, specialized and highly-trained mechanics using the right tools for all jobs, including, of course, testing.” Training of own staff and competitors Besides continuously training its own staff and providing apprenticeships in automotive
mechatronics and commercial aspects for young people, Fahrzeugtechnik Hetzel offers courses and seminars for their customers and their mechanics. Some might think that by doing so, they provide competitors with commercial advantages. However, that’s not how the Hetzels look at it. As Ulrich explains: “Yes, on the one hand we help other companies improve and rebuild more transmissions. On the other hand, it strengthens our business relationships with them and enhances our parts supply business.” Looking ahead, the Hetzels foresee growing demand for remanufactured transmissions and parts. They are confident that the ever increasing deployment of mechatronic units and hybrid technologies will continue to open up business opportunities. As Ulrich Hetzel summarizes: “In the past, we showed great flexibility in terms of keeping our customers satisfied and we want to maintain this in the future. It is also clear for us that it will become more important to create networks with other companies in the industry in order to share knowledge, find ways of working together and create win-win solutions for all parties involved.” n
Hetzel employs 28 people
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erful than older engines thanks to the increased combustion pressures produced by the direct injection, cylinder eactivation and turbocharging strategies. These downsized engines have less mass to dampen vibration and therefore require special vibration absorbing devices. The drive train can, in most cases, handle the increased vibration. However the accessory drive pulleys at the other end of the crankshaft, have only limited capacity to dampen these vibrations created by the fluctuating changes in crank speed at sub idle and idle rpm. To do this the serpentine belt, tensioner and pulleys must work together as a system to dampen vibrations. Increasing belt tension will make the belt wear out faster, accessories fail sooner, and will lead to poor fuel
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economy. To achieve harmony, most newer vehicles come equipped with alternators using a Litens OAD pulley. OADs are designed to be the sacrificial component of the belt drive system. The OAD will absorb the harmful vibrations and eliminate all the harmful side-effects. Alternators manufactured with a Litens OAD, allow for longer belt, tensioner, idler and component life while providing increased fuel economy. Being the sacrificial component of the belt system, an OAD will require replacement during the life of the vehicle based on engine design and driving habits. Replacing the OAD when needed can maximize fuel economy and protect the other belt drive components – alternator, belt, tensioner, pulleys, etc…
Pre-1960
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Vehicle Trends
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Largest ever ReMaTec Amsterdam
Fourteen years after its inauguration, the Amsterdam-based ReMaTec remanufacturing show will open its doors for the eighth time in June. Larger and with more visitors and exhibitors than ever before, this year’s record-breaking edition will fill two of the large exhibition halls at the Amsterdam RAI exhibition centre, thus doubling the 2013 event’s floor space. Over 175 exhibitors are confirmed and a total number of 225 companies are expected to take part - a 20% increase on 2013. When asked what the reason is for this ongoing growth, ReMaTec Show Manager Niels Klarenbeek explains: “Exhibitors at the ReMaTec shows like the events’ niche character. Unlike other trade shows, there is not much “waste” in the aisles because everyone who is seriously involved in automotive and heavy duty remanufacturing is present, no matter where they come from. In 2013 the show attracted visitors from no less than 63 different countries of which 64% had decision making authority with regard to purchasing. This means that every visitor can be a prospective customer. They are all well informed even before their arrival.” One conclusion from recent years’ shows is their increasing role in the individual exhibitors’ marketing strategies. “Today many of the
participants increase their presence by booking larger stands,” Klarenbeek says. “In addition to the existing exhibitors, we now have weekly signups by new exhibitors. This is a clear indication of how the show has become extremely well established within the remanufacturing industry.
sector, remanufacturing has continued rise. The general trends towards sustainability, cost effectiveness and high-quality alternatives for new replacement parts drive an ever greater demand for reman products. We see that reflected on the show floor.”
A further reason behind the continuous of growth the ReMaTec concept can be found within the general development of the reman industry, Niels Klarenbeek believes. “The rapid growth of automotive and heavy duty remanufacturing world-wide means that a key showcase like ReMaTec Amsterdam will grow, too,” Niels Klarenbeek points out. Despite the financial crisis with its very serious impact on the automotive
ReMaTec2015 is welcoming many first-time exhibitors who will receive special recognition on the show floor and in the show catalogue. All companies taking part will be published on the ReMaTec website www.rematec.com and, of course, in the show guide. Online registration for visitors is now open at www.rematec.com n
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Chinese reman execs on tour ReMaTec2015 has received confirmation from two high level Chinese organisations that they will be attending the show. Both the Chinese Association of Automotive Manufacturers (CAAM) and the National Development and Reform Committee (NDRC) will bring influential delegation members to the show. CAAM CAAM, the China Association of Automotive Manufacturers, is China’s national trade for the automotive and parts industry. CAAM established the first sub-commission for remanufacturing in
China and has some 200 members from remanrelated companies. NDRC NDRC, the National Development and Reform Commission, is China’s governmental regulatory body and sets policy and rules for the remanufacturing industry. The main objective of its delegation is to investigate the general reman environment in Europe and to exchange information with European remanufacturers. In addition, NDRC aims to present Chinese reman developments and future trends and policies to European companies who may be interested in
cooperation with China. The delegation aims to network with European companies in terms of industrial and commercial activities. After their visits to ReMaTec2015 the delegations plan to visit remanufacturing businesses elsewhere in Europe and get first-hand experience of the European reman industry through plant visits and site tours. ReMaTecNews intends to cover both tours in the magazine later this year. Companies who are interested in inviting these important Chinese guests can apply by e-mail to show manager Niels Klarenbeek via n.klarenbeek@rai.nl. n
Strong side event programme The RAI Convention Centre will not only be home to the world’s largest remanufacturing exhibition, it will also host some prestigious conferences geared towards remanufacturing. The 4th edition of the renowned World Reman Summit which took place in Bayreuth, Germany (2012), Shanghai, China (2013) and Rochester NY, USA (2014) will have its first presence in Amsterdam, The Netherlands. The management of the 2nd International Conference on Remanufacturing (ICoR), a truly academic conference on remanufacturing, organised by the universities of Strathclyde (United Kingdom) and Linköping (Sweden) has
also chosen ReMaTec to be the ideal venue for their event. Last but not least, Circle Economy is going to organize a Circular Economy Symposium during ReMaTec. Circle Economy is a business consultancy group that develops circular business strategies in different industries. This seminar is geared toward the strategic and practical lessons other industries can learn from the automotive remanufacturing industry. “The three events all complement ReMaTec in their own unique way” Niels Klarenbeek, ReMaTec Show Manager, explains: ”They all have their specific focus and audience: bridging reman industry and science for the World Reman Summit, academic research towards remanufacturing at
ICoR, and sharing the best practices of automotive remanufacturing with other industries for Circle Economy. We’re proud to have these important events in conjunction with ReMaTec2015 and it sets new standards for the show. We see a clear synergy in terms of promotion. The three events will drive their own network to attend their events, and therefore strengthen the concept of one big reman event that offers business opportunities, network occasions and top notch educational content. Amsterdam in June cannot be missed by anyone who is seriously involved in remanufacturing.” n
Circle Economy Seminar
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Date: 16-17 June 2015 Organiser: University of Strathclyde and Linköping University
Date: 16-17 June 2015 Organiser: University Bayreuth
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Bringing innovation to the showfloor
By its very nature remanufacturing does not rank among the industries spearheading high-tech development. Bringing second-life support to obsolete parts, machine tools, machinery and methods, remanufacturing is more about improving, remodelling and rejuvenating existing products than pioneering new ones. Yet at the same time, remanufacturers are famous for their spirit of inventiveness and their ability to find new solutions to old problems. To further promote innovation in the reman industry, ReMaTec2015 is launching a new initiative with potentially considerable implications for exhibitors.
Under the name Innovation Experience, a special area of the ReMaTec2015 show floor will be dedicated to new products and services that are presented for the first time. The Innovation Experience will therefore offer exhibitors a unique opportunity to showcase innovations to a worldwide audience during the three-day show. “The Innovation Experience adds a further dimension to our successful ReMaTec theatre concept by adding the physical presence of a selection of the products and services presented at the theatre,” explains Show Manager Niels Klarenbeek. “New products have always been an important feature of the ReMaTec shows and
we’ve always encouraged exhibitors to submit their new products on the on-line Exhibitor Portal where visitors to the site have an easy overview of any new developments.” “With the Innovation Experience we wanted to take the concept one step further,” he says. “From the new products and services submitted to our website, an independent institute, in this case Germany’s University of Bayreuth, will assist selecting a number of products, which will then be showcased at the Innovation Experience.” The Innovation Experience will be located in exhibition Hall 10. The area will be open to all visitors throughout the show. n
New entrance policy: early pre-registration required The ReMaTec 2015 visitor registration will go live in early March, enabling visitors to register for free entry badges provided they register prior to June 5, 2015. The change in entry policy will enable the show’s management to manage visitor numbers in a better way and ensure the best possible experience for both visitors and exhibitors in what will be the largest ReMaTec show to date. As before, visitors registering online will attend the show for free. Between 6-13 June 2015, online visitors will be charged an entry fee of EUR
40. Visitors that register directly with Amsterdam RAI or online during the show, will be charged EUR 70. “It is essential to have a clear view of the attendance for us to be able to cater for them,” says Show Manager Niels Klarenbeek. “The online pre-registration also enables us to keep visitors informed on the show’s latest developments, offerings and interesting events as well as the companies that are taking part. We recommend that visitors register early. This will enable them to be better prepared to get the most out of their visit”. n
New policy Free pre-registration before 5 June 2015 March - 5 June 6 - 13 June 2015 14 - 16 June 2015 Register online at www.rematec.com
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Final call for ReMaTecNews Remanufacturer of the Year Award Every year since 2005 ReMaTecNews has awarded the automotive and commercial vehicle remanufacturing industry’s finest honour, the Remanufacturer of the Year Award, to an individual or a company that has served the reman industry with particular distinction. The winner of this year’s award will be announced at a ceremony on Sunday 14 June during the ReMaTec2015 show at the Amsterdam RAI Exhibition Center in Amsterdam, The Netherlands, and we now invite nominations for the award to be submitted no later than May 15, 2015 to: ReMaTecNews’ Remanufacturer of the Year Award at info@rematecnews.com Candidates will be evaluated on the basis of innovation, technical excellence, customer service and commitment to
the promotion of the qualities of remanufacturing. Nominations should include a clear and reasoned explanation for the nomination as well as the background of the organisation or individual proposed. Candidates who have been nominated before can be renominated and, without any obligation, the panel of judges would welcome such nominations. Therefore, if anyone knows of a remanufacturer or other player in the reman industry who deserves to be honoured for a continuously excellent performance and for making a special contribution, ReMaTecNews would like to hear from them. Likewise, if you feel that your business deserves wider recognition than is perhaps the case today. The winners of the annual Remanufacturer of the Year Award comprise some of the reman
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industry’s foremost achievers. Other companies and individuals, however, are also deserving of the honour and we would like to encourage them to step forward. n
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The Ellen MacArthur Foundation: Making the world a better place When in 2005, 27-year-old Ellen MacArthur from the UK became the first woman to circumnavigate the globe single-handedly, she won more than instant world fame. Seeing the pollution of the seas and realising the threats to the environment during those lonely weeks on her yacht, she also gained a deep understanding of the vulnerability of the world’s environment and the threat to the globe’s survival. From that lonely experience emerged what may, in the longer term, become the more important outcome of Ellen MacArthur’s unique achievement. The lasting - and ongoing – work of the organisation that bears her name – the Ellen MacArthur Foundation. Founded in 2010 in the UK, the foundation has, within a few short years, established itself as one of the world’s foremost promoters of the development towards reuse, recycling, remanufacturing, renewable energy, sustainability and the numerous other components of the rapidly growing concept known as the circular economy. The foundation expresses it in these terms: “By 2030 the global middle class will total nearly five billion people, which will put increasing demands on finite resources. To continue in the linear model would require unlimited, easily accessible resources and infinite space for waste – something that is clearly not possible.” “Restorative by design, the circular economy is a new economic model, which replaces today’s “take-make-dispose” linear economy with one in which stocks and flows of resources are rebuilt as opposed to degraded/disposed of. This offers the opportunity for significant business innovation in
the transition from selling goods to selling services instead. This results in lower and less volatile costs, and holds huge potential for innovation and job creation. Ultimately the circular economy can help to decouple economic growth from resource constraints.” In short reuse, recycling and remanufacturing – and more. Backing from industry “The Foundation was established in 2010 with the mission of accelerating the transition to a circular economy,” Andrew Morlet, the Ellen MacArthur Foundation’s CEO, said in a conversation with ReMaTecNews. “When it was established we had the backing of four founding partners, Renault, BT Cisco, B&Q Kingfisher and National Grid, and those four companies provided the funding for the Foundation to undertake work in education, business programmes, insight and analysis and communications. The Foundation has been involved in these areas ever since.”
“Ultimately the circular economy can help to decouple economic growth from resource constraints.” In a close partnership with McKinsey, the global management consultants, the foundation has attracted an ever increasing membership of
worldwide organisations and businesses. This is also reflected in its high-profile presence at the World Economic Forum in Davos, Switzerland, where global business leaders, politicians and governments meet once a year to discuss the future of the Earth. In 2014, the foundation carried out a joint study with the World Economic Forum and McKinsey for the purpose of analysing circular economy execution across the supply chain. “At that stage we had built up a fairly consistent and significant amount of momentum behind the idea,” Morlet says. “We had meetings with many more CEOs and participants at the World Economic Forum and as a result we were encouraged to establish an Innovation Platform, the C100, which focused on the business community and where we wanted to bring together large corporate, regional governmental bodies and SMEs as well as emerging innovators, start-ups and a mix of universities, including the pioneer universities that could bring a teaching research perspective into the group.” Sustainable solutions Andrew Morlet believes that the rapid development of the Ellen MacArthur Foundation is set to continue as governments, businesses and organisations become ever more aware of the need for sustainable solutions to the world’s problems.“ We’ve established very strong international interest. We had a number of major meetings in America over the course of last year and there’s clearly a growing international interest in North America and Latin America, in Asia and the Middle East. We can see that companies are now very interested in understanding more about the concept and the potential that this has for their sectors and their businesses. I think we are at the very early stages of a movement that is going
Andrew Morlet Andrew Morlet is the CEO of the Ellen MacArthur Foundation and heads up its business programmes. As part of the Foundation’s business programme, Andrew Morlet leads the CE100, a global innovation platform that brings together large corporates, emerging innovators, government bodies and academic partners to define and launch initiatives to accelerate transition to a circular economy. He has over 25 years’ experience in strategic management consulting, working with CEOs, board level and senior executives of many of the largest global companies in the USA, UK/Europe, Asia and Asia-Pacific – within the areas of automotive, consumer, financial services, healthcare, industrials, pharmaceuticals, resources, hospitality, travel and transport. Andrew Morlet, CEO Ellen MacArthur Foundation
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to grow very rapidly and continue to do so.” Among the drivers behind the sustainability trend, Andrew Morlet lists volatility of commodity prices, the uncertainty of access to resources and its security, material pricing changes and increases. Underlying trends “There’s an underlying trend towards a rise in consumer demand, particularly with new middle-class consumers entering the market over the next 15 years, that strongly implies that material pricing and volatility issues are likely to become more significant over time,” he says. “There are changes in consumer and customer attitudes to the way in which we buy products and access performance of product. We are seeing a very rapid increase in the sharing economy in the mobility space and we are also seeing the interest in governments in building greater resilience into their economies. They are starting to look at rebuild issues as well as power. These larger trends include the potential for re-industrialisation. Together with pollution issues, these all come together to make a case for exploring these ideas quite compelling.
Ellen MacArthur became an international star when she sailed around the world single-handedly How do you see the role of remanufacturing in general and automotive remanufacturing in particular? “I think the remanufacturing sector is a very interesting area, and as we know, remanufacturing is really quite an under utilised tool in the economy. There is a lot of potential for more
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remanufacturing in the motor sector and in the heavy machinery sector and globally. It’s not a new concept by any means, but we can see there is a lot more potential for that sector to grow – and for good reason because of the very strong case in terms of business and material resilience that remanufacturing presents. n
ReMaTecNews | 24
Creating a new market for Arnott
Driving along in his Range Rover one day in 2006, Goswin de Rouw, the owner of a small Dutch IT company, discovered that the car’s air suspension system had developed a fault. Not a big problem, it seemed – at least not until the local dealer told De Rouw that the entire compressor had to be replaced. At full cost. “Is that really necessary?” he asked himself. The answer was that it wasn’t. “I checked the compressor and realised that it was just a very small seal inside the compressor that had caused the problem,” he remembers. “So, together with a technician, I redesigned the seal, put a copy on sale on eBay and within three months I had a new company selling rings to rebuild compressors.” Since those humble beginnings, the company has developed into the European arm of Arnott Inc., America’s leading supplier of remanufactured and new air struts as well as the co-called. Air-toCoil sets for customers looking for inexpensive solutions for older vehicles. Together with friend and local workshop owner, Ronald Jacobs, and with the full backing of Arnott Inc. in Florida, De Rouw now runs Europe’s fastest growing air suspension business. Arnott in the US retains ownership of the operation with Goswin de Rouw and Ronald Jacobs as European directors. At the time friend and local workshop owner, Ronald Jacobs owned a professional workshop so together the two companies seemed a perfect fit. Soon Range Rovers, and later many other types of air suspension cars, were lined up to be serviced in the garage.
“The added value of the workshop was that it enabled the partners to familiarise themselves with the Arnott Air Suspension products, so that we could not only install and sell them, but also support and service our customers a lot better,” says Goswin de Rouw. Watershed Originally De Rouw and Jacobs link-up with Arnott came from an internet search, a visit to Arnott’s headquarters near the Kennedy Space Centre in Florida and an initial order worth some five thousand euros. Whereas early on, Arnott’s owners regarded their new Dutch customers with some caution, the relationship grew with time and in September 2014 reached a watershed with the opening of Arnott’s new 3,000 sq m European head office in ‘s-Hertogenbosch in The Netherlands. From here, 13 employees now service and supply all EU customers with Arnott’s product line. “The organisation is not just a warehouse, we also have a sales team here, provide customer support, have our own R&D workshop, assemble compressors and provide sales and technical training for our customers. All multi-lingual of course,” explains Goswin de Rouw. “2014 was a real roller-coaster for Ronald and me,” he adds. “In the beginning we could certainly not foresee how quickly it would all develop and how well the aftermarket would respond to our products and to the new product category we introduced for wholesale businesses. Today, Arnott has about 95% coverage of all European vehicles with air suspensions right from luxury cars such as Mercedes, Audi, Bentley, Porsche, VW, Jaguar,
Maybach to SUVs from, for example, BMW, and Land Rover. It’s really been quite amazing.” Future plans If all goes to plan, the next few years are going to be “quite amazing, too”. Arnott Europe believes that the European market offers sufficient potential to outgrow the US market and the American parent company is of the same view. “This will happen sooner than you’d think, certainly within the next 5 to 10 years. It’s always hard to predict the future, but with the speed with which we’re growing, I think it should be in five years with the number of employees doubling over two years. Europe is a mix of cultures and every country has its own habits so I think we have to grow the organisation to a point where you have local representatives in several countries.” n
Goswin de Rouw (left) and Ronald Jacobs – creating a European market for Arnott
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Motorsports dependent on reman
AutoSport International is Europe’s largest motorsport event By Steve McQueen On a visit to AutoSport International 2015, Steve McQueen learns how remanufacturing processes help to keep alive their championship hopes. Autosport International is the annual curtain raiser for a new season of European motorsport. It’s an event that showcases the latest and best in racing car technology. Visitors can feast their eyes on cars from just about every racing discipline. But you don’t have to look far to find drivers that rely on remanufacturing specialists to help
Amy Barker with engineer Keith Worthingtong
keep alive their motor racing dreams. Amy Barker had just missed out on a special award from the British Women Racing Drivers Club after retaining her British MX5 MK1 Racing title last year. She told ReMaTecNews that if something goes wrong with the engine on her car, it’s just not possible to buy a new one: “I race in a 1989 Mk1 Mazda MX5. It still has the original engine. If there’s a problem it’s a case of remanufacturing what we already have.”
“Reman is a process that brings with it significant benefits.” Her race engineer is Keith Worthington. He says the last engine reman job was three years ago, which means further love and attention is not far away. That will be provided by a remanufacturer who specialises in race engines and it’s a process that brings with it significant benefits: “Remanufacturing the old one it gives us the opportunity to get improved performance for another couple of years - that means more
reliability and far more compression than the original specification would have had.” Over at the Ford RS Owners Club stand, Ron Walker was exhibiting a ‘concourse’ car. These are cars that have been restored as close to original showroom condition as it is possible to be. From a remanufacturing perspective, he was interested in suppliers that could deliver on looks rather than performance. “Take a Mk1 Ford Escort from 1974, for example,” he says. “You can’t buy a new wing or panel, or if you can, it costs a fortune. The track racers will buy cheap fibreglass
Ron Walker and an ornamental Ford Escort Cosworth
ReMaTecNews | 27
travelling sideways around a bend is one of the best ways to impress - and where the remedial maintenance incurred is likely to be expensive. For example, the differential on the car is likely to be replaced 2-3 times a year.
Buff Luney copies that don’t last and that don’t look anything like as good as the original. That’s no good for a car like this.” Only alternative His 1993 Ford Escort Cosworth looked more like an ornament, especially inside the engine compartment, which gleamed. It was something that you just wanted to stand and admire - and a lot of people at the show were prepared to do just that. “For a car like this, the panel has to be right or you end up spending more money just trying to make a bad part fit. Remanufactured panels are the only alternative.” Mark ‘Buff’ Luney is a driver with the Belfast-based SATS Motorsport team. His Toyota Supra is running in the Maxxis British Drift Championship this season, a discipline where
Dragsters “This car is 20 years old. When the diff becomes a problem, we can’t get new parts anymore. They don’t physically make them, so we have to use the services of remanufacturers. It’s the same with gearbox repairs and the cylinder head.” Last season, Chris Andrews drove for the RF Motorsports team, which has won no fewer than eight European FIA Championships. He doesn’t race around corners. He drives a Top Fuel Dragster. Top Fuel dragsters are prepared for speeds of more than 530km/hr. A fine-tuned engine is critical to success. It’s all about racing just over 300 metres in a straight line. “The engine comes out after every event. We re-measure everything to ensure the tolerances are not exceeded and the pistons and rods are a prime example of this. The stretch of the rod has implications for the whole engine in terms of balance, combination and compression levels. We will remanufacture and re-use them as long as we can. It’s the same with valves, springs and various other components.” Finding remanufacturers He says that finding a remanufacturer with the expertise and the inclination to take this kind of
work on is not always possible: “There are some very good engineering companies in the UK and Europe, but few of them actually support drag racing, which makes them very, very expensive to use.
Drag racer Chris Andrews Our alternative is to ship the parts out to the US, but the re-shipping costs make that prohibitive. So, although it’s not a very efficient use of our time, we have to do much of it ourselves. I’d love to hear from any remanufacturers that could help us out.” n
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New trends impact on HD Reman
HDAW (Heavy Duty Aftermarket Week) in Las Vegas By Denise Rondini Remanufacturing was very much on the minds of attendees at this year’s Heavy Duty Aftermarket Week held January 26-29 in Las Vegas, Nevada. It was even talked about at Heavy Duty Aftermarket Dialogue, which took place right before HDAW. John Blodgett, Vice President of Sales and Marketing for MacKay & Co., a specialized management consulting and market research firm that focuses on the heavy-duty aftermarket, pointed out that remanufactured and rebuilt parts have grown from 24% of the heavy-duty parts demand in 1982 to 32% in 2014. “We have seen the reman and locally rebuilt option types of replacement components grow over that time by about one-third, but that change has been slow,” he said. “And we are seeing some changes and some shifts in some product areas back to new. For example, with rotating electric we have seen some shift from reman to new. And when we research it, we find out that fleets have found the price differential has become a lot more competitive. In some cases they don’t want to have to deal with cores any more so they are shifting to new.” In a conversation on the show floor, Matthew Colwell, Business Development and Strategy Manager, Global Aftermarket, Eaton Corp., said heavy-duty remanufacturing has been
a growing part of his company’s aftermarket business. “We’ve seen double digit growth over the past five years.” Market drivers Market drivers are environmental changes in the U.S. where there is growing acceptance of global warming as a factual occurrence, and the increased sophistication of vehicle components incorporating more electronics, which is making these components more expensive to purchase new. Both the Automotive Parts Remanufacturers Association’s Heavy Duty Remanufacturing Group and the Motor & Equipment Remanufacturers Group held meetings in conjunction with HDAW. MERA hosted a welcome reception for remanufacturing industry executives attending HDAW. Key executives from companies engaged in the heavy-duty remanufacturing industry gathered to celebrate the growth of remanufacturing.
remanufacturing to meet and network before the start of HDAW.” MERA’s CEO Council met prior to HDAW and featured a half-day of speakers and presentations. Stu MacKay, president of MacKay & Co., spoke on trends in the commercial vehicle market while Peter Butterfield, Chairman and CEO of Omega Environmental Technologies and Bill Wade, founder of FleetPride and Managing Partner of Wade & Partners, provided executive insight on lessons learned. John Chalifoux, MERA’s President and COO, shared MERA’s 2015 plans with meeting attendees and H. David Overbeeke, President and CEO of Brake Parts, Inc. led a roundtable discussion about leadership challenges. APRA’s Heavy Duty Reman Group (HDRG) also held its annual HDRG Summit just prior to the start of HDAW. In keeping with the overall convention theme of Elevate Your Business, the HDRG programme focused on increasing sales, improving quality and raising productivity.
Growing importance “Remanufacturing is an important and growing part of our success,” said Andrea Raaber, Vice President, Business Development, Bendix Commercial Vehicle Systems, and one of the sponsors of the event. Detroit Reman and BBB Industries also helped sponsor the reception. “The MERA reception provided an excellent opportunity for key executives from
Electronification Tim Bauer, the recently appointed Director of Remanufacturing at Meritor, gave the keynote address to start off the programme. Bauer touched on growing developments in the remanufacturing industry surrounding “a transition to electronics and mechatronics.” He has coined the term vehicle electronification to describe the increased use of electronic control units of truck components.
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According to Joe Kripli, Automotive Parts Rebuilders Association President, “Bauer shared his passion for the remanufacturing industry, shared market data and updated the group in Meritor’s remanufacturing capabilities. Wade spoke at this meeting as well, focusing on ways remanufacturers can use innovation to elevate their businesses. Scott Hunter, President of Unshackled Leadership Co., gave a presentation titled, Creating an Outrageously Successful Company.” The Heavy Duty Remanufacturer of the Year Award was presented during lunch. Detroit Reman was this year’s recipient. “This was a well-deserved award from a company constantly
being innovative and ahead of the reman curve,” Kripli said. The afternoon sessions were devoted to alternative fuelled vehicles. Bryan Fargo, Senior Manager Field Service for Westport Innovations and Konrad Komunlecki, Senior Director, Global Service & Aftermarket, Westport Innovations, focused on servicing natural gas engines and LNG and CNG heavy-duty systems. Good feedback In summing up the Summit, Kripli said, “We actually got good feedback from meeting attendees. I thought we accomplished our goal, which was just to provide our group with information from the market and from a product
range viewpoint.” He added, “That is always the goal of the Summit, to provide members and non-members with information they can take back and utilize, whether it is market information, product information, what’s next on the horizon, or how to extend and grow their businesses.” About 50 people attended the Summit and although Kripli would prefer a bigger crowd, he added.” When you get a smaller crowd everyone is at ease and talked among themselves and were throwing out ideas that can help everyone in attendance.” n
Detroit Reman wins HD award Detroit Reman was awarded the Mike Hill Heavy Duty Remanufacturer of the Year Award, during the Heavy Duty Remanufacturing Group’s meeting held in conjunction with Heavy Duty Aftermarket Week. Accepting the award, Betsy Ballard, director of product development and growth for Detroit Reman, said, “I am extremely proud to accept this prestigious award on behalf of all Detroit Reman employees. As a direct result of their commitment to produce high quality products and develop proprietary remanufacturing technologies, our customers have come to expect some of the highest value products available in the market. We aim to exceed their expectations every day.” The award is presented to a company or individual who has demonstrated ways to create and grow a successful business model and, in the process, supports industry efforts to
Joe Kripli, Betsy Ballard and Gary Phillips advance the science of remanufacturing. Detroit Reman was chosen to receive the award this year because of its “continued growth and innovation in remanufacturing technology,” according to HDRG. “We are honored to receive this distinctive award which recognizes Detroit Reman’s mission to leverage technology, creativity and a can-do culture to create products that are good for
our customers and great for the environment,” said Sanjiv Khurana, president of Detroit Reman. The company has six remanufacturing facilities strategically located in North America. Product offerings include engine components, transmissions, axles, fuel systems, electronics and diesel aftertreatment devices. n
US correspondent for ReMaTecNews In our continuous efforts to internationalize our coverage of automotive and heavy duty remanufacturing, ReMaTecNews has appointed Denise Rondini US correspondent. In future, Denise Rondini will monitor the US reman market on behalf of the magazine and deliver reports on reman companies, developments and trends in North America. Denise Rondini, a highly experienced writer on motor industry affairs, is president of Rondini Communications, a company specializing in researching and writing about the medium and heavy-duty trucking industry. Her clients include Heavy Duty Trucking magazine, North American Council for Freight Efficiency, MacKay & Co. and Trucking Efficiency. She has been covering the trucking industry since 1982 and has served as editor of Successful Dealer and Truck Parts & Service magazines.Rondini brings a wealth of industry knowledge and a wide network of contacts to her role. She holds a BA in communications from the University of Dayton and an Executive MBA certificate from Northwestern University’s Kellogg School of Management. Denise Rondini
ReMaTecNews | 30
Gary Phillips new HDRG Chairman Gary Phillips has taken over as chairman of the Heavy Duty Remanufacturing Group, replacing Sandra Standley of Power Brakes, who stepped down to devote more time to her business. Phillips is the owner of Reliable Transmission Service, an Allison transmission remanufacturing and service center in Tampa, Fla., that he started in 1981. Phillips describes himself as “being in the pain management business.” He explains, “In the commercial vehicle market everyone buys a piece of equipment to generate revenue. Any time that piece of equipment is down it affects the organization.” Phillips compares what Reliable Transmission do, to what a doctor does. “No one wants to go to the doctor, but when we have to he is supposed to get us up and running and take away the pain.” As HDRG chairman, Phillips is responsible for planning the HDRG Summit that is held every year in conjunction with Heavy Duty Aftermarket
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Gary Phillips Week. Phillips has served as chairman of APRA, chairman of APRA’s Heavy Duty Transmission and
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as a member of APRA’s Board of Directors. n
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Dependability. Every Time. ™
Looks may change, but the message has always been the same. Since 1919, Cummins has proven the dependability of its products. You own the best engine. Keep it running for years to come by using only the best parts. Choosing Genuine Cummins parts means less downtime, lower operating costs and better engine performance. For more information on Genuine Cummins parts available for your Cummins engine, contact our Customer Assistance Center today. Cummins Customer Assistance Center Tel +44 (0) 1327 886464 (UK/Eire Freefone 00 8000 2866467) emea.customerassistance@cummins.com
2010
ReMaTecNews | 31
For further news about
The material for this page has been supplied by APRA, the Automotive Parts ReManufacturers Association
Apra 足Europe, please visit 足www.apra-europe.org
Automotive Remanufacturing Industry moved by the problems with landfill of electronic waste By Peter Bartel, Chairman, APRA Europe Vehicles are becoming more electrically and electronically controlled, so the difference between automotive cores and defect electronic devices is reducing. The volume of e-waste being generated is growing rapidly due to the wide use of equipment, both in developed and in developing countries. The amount of e-waste in the European Union was estimated at between 8.3 and 9.1 million tonnes in 2005 and is expected to reach some 12.3 million tonnes in 2020. Currently e-waste is exported to countries that are not likely to possess the infrastructure and societal safety nets to prevent harm to human health and the environment, due to factors such as exports being less expensive than managing the waste domestically. E-waste may contain hazardous substances such as lead, cadmium, mercury, persistent organic pollutants, asbestos and chlorofluorocarbons that pose risks to human health and the environment when improperly disposed of or recycled and that require specific attention due to their environmentally sound waste management. If we have a look at the informal recovery industry in Asia there is clear evidence that the practice exploits women and child labourers who cook circuit boards, burn cables and submerge equipment in toxic acids to extract precious metals such as gold and subjects them and their communities to damaged health and a degraded environment. Moreover, the techniques used by the informal sector are not only damaging human health and the environment, but they also often perform poorly in recovering valuable resources, squandering precious resources such as critical metals for future use. Even the management of
non-hazardous wastes can cause significant harm to human health and the environment if not undertaken in an environmentally sound manner. E-waste contains valuable materials that can be recovered for recycling including iron, aluminium, copper, gold, silver, platinum, palladium, indium, gallium and rare earth metals, thus contributing to sustainable resource management. The extraction of all of these metals from the Earth has a significant environmental impact. The use of such as raw materials after they have become waste can increase the efficiency of their use and lead to conservation of energy and reduction in greenhouse gas emissions when adequate technologies and methods are applied. Direct reuse or reuse after repair, refurbishment or remanufacturing can contribute even more to
such sustainable development. This extends the life of equipment, which reduces the environmental footprint of their resource-intensive production processes. It may also provide access to such equipment for groups in society that otherwise would not have access to it due to reduced costs of second-hand equipment. APRA actively supports the Basel Convention, an initiative of the United Nations Environment Programme [UNEP] in controlling transboundary movements of hazardous wastes and their disposal by actively consulting how to differentiate between e-waste and used parts intended to be remanufactured. n
focus on tech
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What CNC machining can do for you?
CNC machine equipment Are you using Computer Numeric Controlled (CNC) equipment in your shop? If not, you’re missing out the ease, precision and repeatability demanded by today’s top engine builders. The popularity of CNC shop equipment continues to grow because it offers so many advantages over traditional machinery equipment. • It can reduce your labor expense. Shop owners who have embraced CNC say the technology allows them to do more work with the same number of employees, or in some cases to trim staff, said one leading shop owner. “Once a job has been set up, the automatic controls take over and do all of the machine work. If it’s a long job, the machine doesn’t stop working at 5 o’clock and go home. We can let it run all night if necessary, and start the next job first thing in the morning. We used to have seven people working in our shop. Now we do the same amount of work with just two people. It’s a huge cost savings in labor for us.” • It can increase your accuracy. Despite what you may believe, even your best most skilled operator is a human being, occasionally has a bad day and now and then makes mistakes. Because late model engines have much closer tolerances than engines from a few decades ago, you must
be right on when you bore, hone and machine critical components. There’s less room for error, let alone outright mistakes, so once you have a process in place that delivers the accuracy you want, you don’t have to worry about mistakes messing up a job. • Do the same job again and again. And again. Once you’ve set up the basic machining perimeters for a job, the programming can be stored and reused or easily modified the next time a similar job comes in. For example, say you want to blueprint a small block Chevy engine. Once you’ve established the basic dimensions for locating and centering the cylinder bores, lifter bores, crank and cam bores, deck surfaces, etc., you have a digital map that be used over and over again for every engine you do, with consistent results no matter who pushes the buttons on the machine. • Do more work in-house. Keeping your parts in-house can give you greater control over your work and reduces the time it takes to complete a job by eliminating shipping and delivery delays. One of the most popular applications for CNC machining is for porting high-performance cylinder heads. This type of work usually requires a 5-axis machine that can reach all areas of the intake and exhaust ports for a seamless transition. But a CNC machining center can do more than
heads. It can bore cylinders, line bore blocks and OHC heads, machine lifter bores, surface decks, lighten blocks and even fabricate custom billet parts from a solid chunk of metal, letting you offer custom machining services for automotive and motorcycle customers and even fabricating custom non-automotive components for a variety of industrial and agricultural customers. A digital probe on a CNC machining center can be used to map parts, giving you a blueprint of all the key dimensions and surfaces on that part. If you then want to replicate a part out of solid billet aluminum you have the three-dimensional map for making it.
focus on tech So Advanced, It’s Simple When Apollo 11 landed on the Moon in 1969, NASA used less computing power to manage its entire organization than that found in a single smartphone today. Technology continues to advance at an accelerated rate, and certain manufacturers have harnessed those advancements for their customers’ benefits. Rottler Manufacturing’s proprietary CNC software has been designed for users in the engine building industry. The company’s CNC programmers have such knowledge and understanding of their customers and markets the they have been able to design products able to handle any block – yet so simple to operate that new users can be training their coworkers in just days. Most aftermarket honing machines are extremely labor intensive – the operator has to stay at the machine and cannot do any other work while the job is being honed. Rottler pioneered automatic “walk-away” diamond honing more than 15 years ago and has recently introduced the H75A series machine that allows a complete block to be honed automatically. This CNC hone has been chosen by the experts at Total Seal piston rings as well as Roush-Yates’ NASCAR engine building team. Rottler’s CNC hones utilize a new super abrasive for honing cast iron cylinders called cubic boron nitride (CBN). CBN cuts better than standard abrasive and does a far superior job cutting cast iron than diamond does, presenting a very clean finish with no torn, folded or fragmented metal left behind. CBN actually cuts so cleanly that some machine shops have eliminated plateau honing tools from their highest performance engine operations. These high performance shops demand plateau honing standards to meet Total Seal’s parameters for engines up to and including Formula 1. To clarify, however, CBN won’t be a choice for everyone. Although it cuts cleaner than any other abrasive, it is a bit slower-cutting abrasive than diamond. It is still in the category of “super abrasive,” lasting about half as long as diamond stones. So, instead of getting 20,000 cylinders per set of stones, you can reasonably expect 10,000. Experts recommend using CBN super abrasives for plateau honing purposes. You can still use your basic 270/325 diamonds for the base finish, but you would then change to the new CBN abrasives for a final 3-4 strokes with no brushing. Suppliers recommend 15-20% load when in plateau mode. Rottler CBN stones (part number 514-9-35B) are three inches long and have the groove cut into them just like a the diamonds. They average $650 per set of four.
ReMaTecNews | 33
CNC Programming The automatic controls on most CNC machines use either keyboard or touch screen inputs. The interface is Windows-based so anyone who knows how to use a computer should have some familiarity with the controls. The software that actually runs the equipment ranges from easy to learn to very complex. To make life easier for automotive machinists who are not engineers or who have not taken a CNC programming training course, many automotive-oriented CNC machines use “conversational programming.” Conversational programming is much easier and faster to learn than traditional G-code and M-code programming. So with minimal training, a CNC machine can be up and running and making you money. Upgrades can be installed by a simple download. Like a smart phone upgrade, new icons or buttons can be added to an existing display screen or touch screen to provide new functions or information. To be perfectly honest, CNC machines are not cheap. They require a sizable investment: it can cost you up to six figures depending on what you buy. With five year financing, the payback can come fairly quick, according to CNC suppliers. Your return on investment will depend on what kind of work you are doing, how many jobs per day, week or month you are doing, how much you are charging for your work, the time and labor savings you realize from automating
Since 1923, Rottler Manufacturing has pushed the limits – and the expectations – of technology to become a leading supplier of state-of-the-art machining equipment. Today, Rottler offers a complete range of machines for every type of engine builder with a machine designed specifically for your application. Rottler offers worldwide coverage of its entire product line through a large network of representatives and distributors in over 50 countries.
processes, and any additional savings that result from better quality control (fewer comebacks and do-overs that cost you money).Frankly, the better question is not “Can you afford it?” but “How can you not afford it?” Given all of the advantages that CNC has to offer, how can you remain competitive in today’s market without this type of equipment? For more information about CNC equipment designed exclusively for the engine building industry contact Rottler Mfg at 800-452-0534 or visit us at www.rottlermg.com. n
MARKET PLACE
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Balancing machines
Schenck RoTec GmbH Landwehrstr. 55 64293 Darmstadt | Germany P +49 6151 32 2311 E rotec@schenck.net W www.schenck-rotec.com
Cleaning
ARMEX Church & Dwight Co., Inc. 469 North Harrison Street Princeton, NJ 08543 U.S. W http://www.armex.com
Cores
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
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
SDA Import - Export BV Duizeldonksestraat 7, 5705 CA Helmond The Netherlands P +31 (0) 492 524463 E tony@sdaim-export.nl W www.sdaim-export.nl
Test Equipment STP-Parts GmbH 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
Lizarte S.A. Polígono Agustinos C/B 31013 Pamplona, Navarra (Spain) P +34 (948) 303436 E info@lizarte.com W www.lizarte.com
Remaned Pol. Ind. Morea Sur, 41. 31191 Beriáin - Navarra, Spain P +34 948 368 775 E contacto@remaned.es W www.remaned.com
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
RECICLANOVA METAL S.L. C/ Rosa de los vientos nº40 Polg. El viso, 29006 Málaga P +34 952240970 E adreciclanova@gmail.com W www.reciclanovametal.com
Parts & Engines
Vitobello Ricambi Srl. Via Luciano Lama, 28 47020 Longiano (FC), Italy P +39 0547/52839-56209 E info@vitobello.it W www.vitobello.it
Remanufactured Products
BU Drive GmbH Friedrich-Ebert-Straße 125 Lingen (Ems) | Germany P +49 (0) 5 91 / 71 050 E info@bu-drive.de W www.bu-drive.de
ROBARCKO B.V. Markerkant 1306a 1314 AN Almere Stad The Netherlands P +31 ( 0 )36 530 46 02 E info@robarcko.nl W www.robarcko.nl
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
Arrowhead Electrical Products, Inc. 3787 95th Ave. N.E. Blaine, MN 55014 United States of America (USA) 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
Transmission parts
Ganzeboom Transmissies Planthofsweg 45 7601 PH Almelo, The Netherlands P phone +31 (0)546-819510 E info@ganzeboom.net W www.ganzeboom.net
GFX Corp. 4810 NW 74 Ave. Miami, FL. 3166 United States of America (USA) P 305-499-9789 E www.gfxcorp.com W dios@gfxcorp.com
Turbo Parts
Melett Limited Unit N, Zenith Park Whaley Road, Barnsley S75 1HT, United Kingdom P +44 (0) 1226 320939 E sales@melett.com W www.melett.com
INFORMATION For more information please contact the ReMaTec Sales team phone +31 20 549 14 31 advertising@rematecnews.com www.rematecnews.com
ReMaTecNews | 35
ReMaTec2015 – your trade show
By Volker Schittenhelm Meanwhile it is traditionally settled – during odd years the automotive reman world is looking to Amsterdam and its trade show ReMaTec. It is no surprise and with no doubt the biggest show of its kind in the world. And FIRM as one of the cooperation partners has well done in the late 1990s to go that way and support the former Danish organizers in order to offer a platform for the reman industry.
4. Importance of quality management systems and certifications a. DIN/ISO 9000 b. IRIS / CEM c. CLEPA remanufacturing standard As you can see, we offer a quite wide range of interesting topics and areas in order to reach the maximum number of engine remanufacturers. The event will have workshop character – free for members - with presentations, discussion, conclusions and definition of actions plans.
In this year, we already count the 8th edition. What is especially planned for engine remanufacturers? A 4 hours workshop with technical / economical issues:
Meet European engine reman association representatives as well as managers of individual companies (IAM & OES) and of course technical staff.
1. Analysis of damages of combustion engines
Apart from the workshop, meet your colleagues and discuss actual topics of your daily business at FIRM’S booth in hall 11 – just in the neighborhood of APRA-Europe.
2. Legal effects on CE certification of remanufacturing of industrial engines 3. Cleaning methods in the engine remanufacturing process
Award “Remanufacturer of the Year” It’s been some time ago that a remanufacturer from the engine side has won that prestigious
award. But the jury can only decide based on the available nominations. So, you are the real experts, you all know the engine reman market and you know the market players best. Find-out and tell the jury or send your idea or nomination to the secretariat of FIRM. Explain why you nominate that company or person, why you think that company / person has a shining profile and has contributed more than others to the engine reman industry. But by the way: “… making quality…” and “certified after ISO 9001” are self-evident and no reason for an award. If so, we would have thousands of nominations. n
Volker Schittenhelm
2015 International Conference on Remanufacturing 15-16 June 2015, Amsterdam
ICoR 2015 will be held in the RAI conference centre in Amsterdam in June 2015 as part of the first International Remanufacturing week. In this event the major remanufacturing events, ICoR, ReMaTec2015 and the World Remanufacturing Summit will showcase remanufacturing. This will be the biggest remanufacturing event ever with over 3500 attendees from more than 67 countries. ICoR aims to gather together the global knowledge and expertise in remanufacturing practice and research, from industry and academia, thus providing a unique opportunity to obtain exciting and innovative experiences to forward developments in technology and research in sustainable manufacture and waste management. The international dimension is emphasized in order to overcome cultural and national barriers, and to meet the needs of global sustainability given the significant adverse impacts of accelerating global industrialization.
Key Dates Early bird registration deadline: 30th April 2015 Cost Early bird registration fee: ÂŁ195 Normal registration fee: ÂŁ245 Student rate fee: ÂŁ145
Organisers Dr Winifred Ijomah is a leading international researcher in the field of sustainable design and manufacturing. Dr Erik Sundin conducts research within the areas of remanufacturing and product/service systems.
Reduced fees for ReMaTec exhibitors and World Reman Summit attendees
www.remanufacturing-conference.com
ReMaTecNews | 37
US senators in strong push for reman In late February two members of the United States’ Senate launched a new bill that could potentially have a very considerable, positive effect on automotive and commercial vehicle remanufacturing. The bill, named the Federal Vehicle Repair Cost Savings Act, aims at encouraging the federal government to use remanufactured parts when maintaining the federal vehicle fleet. Since the American government spends nearly $1 billion per year to maintain some 588,000 government vehicles, the passing of such a law
could have huge direct and indirect implications for automotive and heavy duty remanufacturing. The two senators behind the bill are Gary Peters, a democrat from Michigan, and the republican James Lankford of Oklahoma. Senator Gary Peters said: “I’m proud that the first bill I’m introducing in the Senate is a bi-partisan, commonsense measure that will help save taxpayers money, promote conservation by remanufacturing parts and support remanufacturing suppliers in Michigan and across the country.”
Saving tax payer money “Congress must consider every way to conserve limited federal dollars within every agency and every budget line item. Encouraging remanufactured auto parts when repairing government vehicles is a worthy cost-cutting measure to save taxpayer money,” senator James Lankford added. According to the U.S. International Trade Commission remanufacturing of motor vehicle parts creates over 30,000 full time jobs, while remanufacturing of off-road equipment creates over 20,000 additional jobs. n
CARDONE appoints new CEO CARDONE Industries have appointed Terry McCormack, the company’s Executive Chairman since early 2014, as Chief Executive Officer. He succeeds Kevin Crampton, who has been CEO since 2012.
Terry McCormack joined CARDONE’s Board of Directors in June 2013 and was named Executive Chairman in April 2014. With a 40-year tenure in the automotive aftermarket, first with the Dana Corporation and subsequently with the Affinia
Group, Terry McCormack has wide experience in the aftermarket. n
Rottler CNC True Vertical Honing
Linear Slideway stroking and precision ball screw mechanisms controlled by state of the art CNC create precise cross hatch angle without any ‘cross hatch rounding’ at top and bottom of the bore • Two Stage Honing System allows roughing & finish operations in one Automatic Cycle • Rottler Touch Screen software with digital accuracy. So Advanced, It’s Simple • Automatic Load/Force Control creates optimized surfaces finishes & accurate geometry
Rottlesrenses e t f So wfaerrence for r e int matic Crash Auto ention...no Prev en stones! brok
Phoenix, Arizona
www.rottlermfg.com www.youtube.com/rottlermfg www.facebook.com/rottlermfg contact@rottlermfg.com
8029 South 200th Street Kent, WA 98032 USA +1 253 872 7050
THE CUTTING EDGE
1-800-452-0534
INTERNATIONAL EVENTS & TRADE FAIRS
ReMaTecNews | 38
07/04 - 11/04/2015
14/04 - 19/04/2015
AUTOMEC - International Auto
AUTOSALON/AUTOSERVIS
Parts, Equipment and Services Trade Fair Sao Paulo | Brazil
International Motor Show and Car Accessories Trade Fair Bratislava | Slovakia
08/04 - 11/04/2015 AutoTronics Taipei - Taipei
16/04 - 18/04/2015
International Automobile Electronics Show Taipei | Taiwan
EXPOCAM Trucking Industry Exhibition Montreal | Canada
08/04 - 11/04/2015 TAIPEI AMPA - Taipei
16/04 - 19/04/2015
International Auto Parts & Accessories Show Taipei | Taiwan
TRANSPOTEC & LOGITEC
09/04 - 12/04/2015
Trade Fair for Industrial Vehicles, Intermodal and Combined Services, Road Transport and Logistics Verona | Italy
AMR - Auto Maintenance & Repair
20/04 - 29/04/2015
The China International Trade Fair for Auto Maintenance Technology and Equipment, Auto Parts and Accessories Beijing | China (PR)
Auto Shanghai
09/04 - 12/04/2015
21/04 - 23/04/2015
Automechanika Istanbul
SAE World Congress
Turkey’s Leading International Trade Fair for the Automotive Industry Istanbul | Turkey
Society of Automotive Engineers International Congress & Exposition Detroit, USA
09/04 - 12/04/2015
24/04 - 26/04/2015
Motor Show
Automechanika Chicago
International Motorshow Poznan | Poland
International Trade Fair for the Automotive Industry
10/04 - 12/04/2015
April 2015
AutoTrend
Mobil Salon
Automobile Exhibition Mecklenburg-Western Pomerania Rostock | Germany
Ceske Budejovice | Czech Republic
Shanghai International Automobile Industry Exhibition Shanghai | China (PR)
14/06 - 16/06/2015 ReMaTec2015
13/04 - 17/04/2015 MobiliTec Hybrid and Electric Powertrain Technologies, Mobile Energy Storage and Alternative Mobility Solutions Hanover | Germany
14/04 -16/04/2015 Commercial Vehicle Show Birmingham | United Kingdom
The international trade fair for remanufacturing Amsterdam | The Netherlands
2015 The World’s No. 1 show for Remanufacturing Automotive | Heavy Duty • Discover the latest trends and innovations • Network with your fellow industry specialists • Meet 225 exhibitors in two halls • Do business with top-level buyers • Take part in educational seminar sessions • Enjoy the charming city of Amsterdam
Last call for exhibitors: book your stand now! In association with:
Register before 5 June 2015 for your free visitor pass on www.rematec.com
Co-located with:
Full Line Automotive Core Supplies www.autoenterprises.co.uk Starters & Alternators
Engines
Diesel Pumps & Injectors
Steering Racks
We buy and sell used car parts! AC Pumps
Steering Pumps
Gearboxes
Turbos
One of the largest global suppliers
Calipers
Drive Shafts
Autoenterprises Limited Units 1-6, 14, 15, Pembroke Business Centre Paycocke Road, Basildon, Essex SS14 3HX United Kingdom
info@autoenterprises.co.uk 0044 (0) 1268 285 888