REMANUFACTURING INTERNATIONAL
AUGUST 2014 | NO 4 | VOLUME 14
SRC - a revolutionary approach: A talk with founder Jack Stack
SERMEC - 5 generations
Reman opportunities
Clepa: Change of CEO www.rematecnews.com
Automechanika Frankfurt Hall 3.1 I Booth B95
16th till 19th of September, Pos Service Holland will again be exhibiting at the Automechanika Messe in Frankfurt. Next to Starter motors, alternators and cores, PSH will introduce and demonstrate the testers of the brand Motoplat. We will also unveil the newest addition to the brand: the Motoplat CV411 alternator test bench. The famous Motoplat test bench with the newest testing technology. For more information, please visit our websites: WWW.PSH.NL I WWW.MOTOPLAT.NL
Address Messe Frankfurt Exhibition GmbH Ludwig-Erhard-Anlage 1, 60327 Frankfurt am Main, DE
Location Hall 3.1 I Booth B95
Opening Hours 16 -19 September I 9:00am - 18:00pm 20 September I 9:00am - 17:00pm
Website www.automechanika.messefrankfurt.com
POS SERVICE HOLLAND T: +31 (0)35 656 3180 I E: PSH@PSH.NL I WWW.PSH.NL
CONTENTS
ReMaTecNews | 3
5 | BigR/ReMaTecUSA
12 | SRC – remanufacturing an entire industry
22 | Keeping old traditions alive by modern means
In its first year BigR/ReMaTecUSA, the reman exhibition in Las Vegas November 1 to 3 is clearly establishing itself as the new meeting point for the world’s remanufacturing industry. With just 5 booths still available all signs are that the revitalized Vegas-event is set to become the biggest of its kind in more than 20 years.
To the global reman community, SRC of Springfield, Missouri, has achieved legendary status within agricultural, industrial, construction and automotive markets. Behind the scenes, however, this unusual company has also created a culture that is being emulated by industrial companies world-wide. ReMaTecNews visits SRC – and meets its remarklable founder Jack Stack.
Hidden away in the Italian countryside south of Bologna, a small, family-oriented business is establishing a European-wide reputation for applying advanced technologies in the remanufacture of electric and manual Power Steering as well as electric and hydaulic pumps. ReMaTecNews visits SERMEC.
“We want everyone working here to smile when they arrive in the morning... “
www.rematecnews.com
Giovanni Ricci of SERMEC
Editorial
4
Big R/ReMaTecUSA – largest US reman show in 20 years
5
Remy in world-wide offensive
7
Remanufacturer of the Year 2014
8
Melett starts up in China
26
Heavy Duty World
30
APRA News
34
FIRM News
38
Clepa appoints new CEO
41
International exhibitions and events
43
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 August 2014 | Number 4 | 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
Back to work The summer is over for another year and businesses everywhere are gearing up for another term in their respective – and competitive - environments. The reman supply chain, of course, is no exception. Once again, remanufacturers across the board, in the West as in the East, are facing a wide range of challenges – existing and new. They all have to be dealt with in the most efficient manner – and, most often, they will be. Many remanufacturers excel in this. To be a successful remanufacturer requires technical skills and an innovative mindset because, by its very nature, remanufacturing means not just repairing or rebuilding a component that has already been manufactured once. Most of the time this means reinventing and improving upon something that has already been invented. While most OE units are made by some of the motor industry’s premier names, by and large, good remanufacturers succeed in improving them. Hardly a secret within the industry itself, nevertheless it’s rather regrettable that this important aspect of remanufacturing seems underrated by consumers in general. Within this context, two articles on the following pages call for particular attention. One provides an insight into one of the world’s legendary engineering company’s approach to remanufacturing. The other takes a closer look at one of the reman industry’s genuine success stories. In both cases the reman community can draw inspiration as well as confidence about the future of remanufacturing. In both cases, the message is simple: for a variety of good reasons, there is a bright future ahead for remanufacturing – if undertaken by people and companies with the ability and desire to make good components even better. This requirement is met by many within the remanufacturing industry. On the backdrop of existing as well as emerging trends, there could well be more to come as remanufacturers prepare for the next stages in the industry’s development.
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 Maaike van Dijk Phone +31 (0)20 549 16 53 m.v.dijk@rai.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.
William Schwarck, Editor-in-Chief
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NEWS FROM THE INDUSTRY
ReMaTecNews | 5
APRA/ReMaTec joint venture in Vegas outgrows all expectations In its first year BigR/ReMaTecUSA, the reman exhibition in Las Vegas November 1 to 3 is clearly establishing itself as the new meeting point for the world’s remanufacturing industry. As of August 1st, the show, a collaboration between APRA and Amsterdam RAI, (the organiser of the ReMaTec shows in Amsterdam), is already twice the size of last year’s BigR. With just 5 booths still available all signs are that the revitalized Vegas-event is set to become the biggest of its kind in more than 20 years. “When we and APRA started out on our journey last year, the goal was to create the largest remanufacturing show in North America,” said Niels Klarenbeek, Domain Manager with
Niels Klarenbeek, Domain Manager ReMaTec and Joe Kripli, APRA One sign is the number of non-US exhibitors to the Vegas show. Significantly higher than in previous years, non-US exhibitor numbers include a series of European-Asian/Pacific businesses such as Euro Car Parts, Australia, CoremanNet, Germany, PINO Cores, Germany, Holonix and Politecnico di Milano, Italy, Kinergo, Lituania, Autoenterprises, United Kingdom, POS Service Holland, The Netherlands and Kardes Elektrik, Turkey.
responsibility for the ReMaTec shows at Amsterdam RAI. “Now there is no doubt whatsoever that we will meet expectations.”
All have exhibited at ReMaTec Amsterdam and will now exhibit in the USA for the first time. In total, companies from 14 countries outside USA have announced their participation.
World names Among world-leading exhibitors WAI Global, SRC, WABCO Reman Solutions, BOSCH (HC Cargo), Regitar USA, Mellett, Kyzen have also announced their presence. n
Impression of the free accessible ReMaTecTheatre
New Product Manager ReMaTec shows Amsterdam RAI, co-organiser with APRA of the Big R/ReMaTecUSA show in Las Vegas, Nevada in November, has appointed Kim Schotborgh Product Manager. Schotborgh will take up her position with effect from September 1, 2014.
“I have witnessed the growth of the ReMaTec concept and the enthusiasm of exhibitors and visitors alike. I’m really looking forward to getting to know the industry better and being nvolved in this fast growing international expo,” she says.
Kim Schotborgh, 34, the most recent addition to the RAI Exhibition’s ReMaTec team, comes to the job with experience from other RAI exhibitions where she has worked with external exhibitor relations, commercial planning, exhibition management and accounts. As Product Manager for ReMaTecUSA 2015 she will perform a similar role for US and international exhibitors. Kim Schotborgh, Product Manager
“The appointment of Kim reflects the general development of Amsterdam RAI remanufacturing activities,” explains Niels Klarenbeek, Domain Manager, Remanufacturing. “Going forward, we have two annual shows, ReMaTec in Amsterdam and the event in Las Vegas. At the same time, we’re exploring further opportunities world-wide. As our involvement in reman becomes deeper, we need to grow the team accordingly. Kim’s arrival will help us do that.” n
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Total focus on remanufacturing Largest reman show floor in North America: 40,000 sq ft show floor dedicated to remanufacturing Various networking opportunities Get up-to-date with the latest trends & developments (APRA seminars and free ReMaTecTheatre) Co-located with ATRA’s Powertrain EXPO on Saturday November 1 Visit exciting Las Vegas and the Automotive Aftermarket Industry Week in addition When and where? November 1-3 2014, RIO All Suite Hotel & Casino Las Vegas, NV
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NEWS FROM THE INDUSTRY
ReMaTecNews | 7
Remy: Towards new markets A global supplier of new and remanufactured starters/alternators for passenger cars as well as the heavy duty segment, Remy International has, for years, ranked among the top names in OE markets and in the aftermarket. The company is now launching a major effort to further extend its activities in some important regions outside the US. Going forward, Remy will give more focus to its efforts for growing its aftermarket business outside North America, i.e. in China, South/Latin America, the Middle East as well as in Europe. Organic growth and acquisitions will both be considered whenever they fit in to the strategy.
Customer Service teams outside North America will, therefore, report to Jef Verelst.
sites and where some further reman development would seem natural’’ Jef Verelst says. n
“Remy wants to see faster growth in the aftermarket outside the US and we see a lot of opportunities in some of the worldwide markets,” Jef Verelst told ReMaTecNews. “Of course, Remy is already well-established as an OE supplier globally but there is clearly potential to do more. This is why we’re now, amongst other initiatives, placing more focus on serving aftermarkets around the globe.” Part of Verelst’s brief will be to take a closer look at opportunities within remanufacturing in countries like China, where the company already operates OE manufacturing
Jef Verelst, Remy
Underlining the importance of the mission, Remy has appointed Jef Verelst, currently General Manager, Remy Europe, to the new position of Vice President, International Aftermarket Business Development with responsibility for aftermarket sales growth in all regions outside North America. All Remy Aftermarket Sales, Marketing and
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Career After 13 years at Atlas Copco, Jef Verelst has been with Remy Automotive Europe since 2000, initially working as Director, Purchasing Europe, Director Purchasing and Distribution Europe and Plant Manager at Remy’s Hungarian remanufacturing plant in Miscolc. He subsequently became Director OES Sales before his appointment as Vice President Sales, Marketing and Distribution in 2007. In 2011, he succeeded James Philippe as head of Remy Europe.
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ReMaTecNews | 8
Ten years of reman achievements Now in its tenth year, ReMaTecNews’ Remanufacturer of the Year has established an unrivalled position at the global reman industry’s most valued honour. On November 1, a new name will be added to the list of eminent recipients, when ReMaTecNews names the 2014 Remanufacturer of the Year at a ceremony at the opening of the BigR/ReMatecUSA reman show at the Rio Convention Centre in Las Vegas. “The rising respect for the award over the past decade reflects, I believe, the rising importance of remanufacturing in general over the past ten years,” said William Schwarck, Editor-in-Chief and Chairman of the Panel of Judges for the Award. “ReMaTecNews takes pride in have established the award and the judges look forward to honour yet another worthy winner.” Distinction The Remanufacturer of the Year Award honours an individual or business that has served the automotive reman industry with distinction. Candidates can be nominated by anyone, including themselves, and will be considered by the judges on the basis of the following criteria: Technical excellence, dedication to quality, innovation and impact on the reman industry. Other criteria include outstanding customer service, pioneering activities and commitment to the cause and promotion of automotive and heavy duty remanufacturing.Submissions must
From left to right: Chairman of the jury William Schwarck, 2013 Award winner Alan Smart, jury member Doug Wolma. include a clear explanation of the reasons for the nomination as well as information on the background and reman-related activities and achievements of the company/individual proposed. The judges will carefully consider all nominations but will not be bound by any specific submission and their decision will be kept confidential until the award ceremony. The judges’ decision is final and no subsequent discussion can be entered
into. Candidates who have been nominated in previous years can be renominated providing they meet the overall criteria. The panel of judges will, without obligation, welcome such nominations again. The online nomination form can be found at www.rematecnews.com. n
The Panel of Judges
Volker Schittenhelm
Fernand Weiland
Doug Wolma
William Schwarck
The panel of judges consists of Volker Schittenhelm of FIRM, the European Engine Remanufacturers Association, Fernand Weiland, former chairman of the European Division of APRA, the Automotive Parts Remanufacturers Association, Doug Wolma, Head of Remanufacturing at DANA Corportation and a board member of MERA, MEMA’s reman division, and William Schwarck, Editor-in-Chief, ReMaTecNews.
ReMaTecNews | 9
2012
2011 Doug Wolma Meritor
2008
2010
2009
Philippe James Remy Automotive Europe
2007 John van Gerven MRT Engines
François Augnet TRW
2006 Martin Detzen MD Rebuilt
2005 Alexander Schäfer MS Motor Service Int.
Judging criteria for Remanufacturer of the Year 1. Nominations must contain information on the nominees’ background, reman-related activities and achievements.
4. Nominations should be no longer than 500 words.
6. Candidates will primarily be judged on the basis of the following criteria: • Technical excellence • Commitment to quality • Impact on the remanufacturing industry • Customer service • Pioneering activities • Promotion of automotive and heavy duty remanufacturing • Eco-friendly operations or innovations • Technical Innovation • Unique Selling Point • Quality certifications (e.g. ISO 9001, TS 16949)
5. Nominations must be received before September 15, 2014 - Candidates can be nominated by anyone, including themselves.
For more information: www.rematecnews.com
2. Nominations must contain a clear explanation of the reasons for the nomination. 3. It is not mandatory for candidates to be part of any association or to take part in any of the ReMaTec events to be nominated for the Award.
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ReMaTecNews | 11
Reman experts to meet in Rochester Scheduled for late September in Rochester, New York, the third World Remanufacturing Summit boasts an impressive list of remanufacturing specialists from most sectors of the reman industry. Since the event is preceded by the Motor & Equipment Remanufacturers Association, MERA’s remanufacturing and sustainability conference on the campus of Rochester Institute of Technology, it’s clear that for three days, RIT will gather more of the world’s leading experts in one place than has been the case for years. With the MERA event on September 24 and the World Remanufacturing Summit on September 25 and 26 the stage is, therefore, set for a rare opportunity for industry leaders and international academics to discuss trends and international remanufacturing research and the latest advances in reman technologies.“We believe that we secured a highly impressive list of presentations and that the event will offer attendees a brilliant
opportunity for networking with authorities in reman from around the globe,” said Summit Chairman and host Prof. Nabil Nasr, Ph.D, of the Golisano Institute for Sustainability. “More than ever before reman practitioners and reman researchers must come together to move this important industry forward. Here is an unrivalled opportunity to do so.” “Our two previous sustainability conference, attracted leading figures from across the reman industry,” said John Chalifoux, Mera’s President and CEO. “This, clearly, will be repeated at this year’s conference. We’re genuinely pleased to see such high-level interest in these events.” Previous Reman Summits 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,
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China. The second World Remanufacturing Summit in Shanghai in December 2013 attracted more than 150 delegates from China, the United States, Germany, Britain, Sweden, Finland and several other countries. For all Global Reman Summits ReMaTecNews act as media partner. For a list of presenters and more information on World Remanufacturing Summit 2014, see the conference website www.rit.edu/gis/wrs2014. n
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ReMaTecNews | 12
Springfield Remanufacturing: “The sensible way to run a business”
Jack Stack, Founder, President & CEO of SRC Holdings Corporation This afternoon, in the conference room, the staff convene for the monthly information meeting. On the wall is a board showing the latest figures, results and updates. Open for all to see and to discuss. In most companies, such information is the preserve of upper management and accountants. Commercial secrets, sensitive details, confidential info: the stuff that businesses across the world want to keep behind closed doors.Here on the outskirts of the city of Springfield in the midAmerican state of Missouri, the philosophy is different, diametrically opposed in fact. Here the view is that the more involved everybody is, the more they know about the fundamentals, how the business is run and why decisions are made, the more they can – and will - contribute to the company’s success. This is part of the explanation why Springfield Remanufacturing Company, the world’s largest employee-owned remanufacturer has become one of the reman industry’s most successful players. It also explains why this former Harvester International subsidiary, which faced bankruptcy
back in the 1980s, is now at the heart of one of America’s most admired business models. And finally, how the leader who created it all has now become something of an industrial legend – and not just within the reman industry. He is Jack Stack, the founder, President & CEO of SRC Holdings Corporation – and author of two books on the subject - The Great Game of Business and A Stake in the Outcome. These are management handbooks that have become so successful that the promotion of the “Open Book” management system has itself become
a special business area for SRC. The core of the system is the belief that only by employing all the skills of all the people, regardless of their position in the company, will you achieve real success. Today across the world, more than one million people working for companies that have adopted Stack’s Open Book management have been exposed to this revolutionary system - in general with very considerable benefits for employers and employees alike. It’s all about trust. As Stack, who was once called “the smart strategist in America” by Inc. Magazine and one of the “top ten minds
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. SRC, Springfield Remanufacuring, has not only established itself as a world-class reman business but also created an innovative management system. We visit SRC in Springfield, Missouri.
ReMaTecNews | 13
in small business” by Fortune Magazine, puts it: “At SRC our most powerful asset is our people. When you appeal to the highest level of thinking, you get the highest level of performance.” Theory into practice The pace of development of SRC since its foundation in 1983 is clear evidence of what can be achieved by turning Stack’s theory in practice. Today SRC is owned by the 1,200 hundred people who work for it. The company has sales in excess of $450,000,000, operates 31 business units, which include joint ventures with John Deere, Case New Holland and Navistar. An even stronger illustration of its innovative approach lies in the fact that over the years, SRC Holdings Corporation has started or acquired over 60 small and medium-sized businesses, creating thousands of jobs along the way. Moreover, SRC Holdings Corporation has increased its stock value 292,000% since 1983. Further evidence of Open Book management is hardly needed.Arriving in SRC’s home town, Springfield in Missouri, in the heartland of USA, the visitor is quickly struck by the impact of the company that carries its name. On all sides of this rural mid-western city of 160,000 people, you find plants with the SRC logo on it. SRC Logistics, SRC Automotive, SRC Power System, SRC Heavy Duty Division, SRC Electrical, New Stream Enterprises (supply chain), CNH Reman (for dealers), CIONA (electronics reman). And most recently Global Recovery Corp., a core dealer function.
“Whether you’re an associate or a customer, at SRC you will be surrounded by energised, engaged and empowered entrepreneurs.” Empowered entrepreneurs All run as separate enterprises and all bound together by a common culture, which is encapsulated in the statement: “Whether you’re
an associate or a customer, at SRC you will be surrounded by energised, engaged and empowered entrepreneurs.” In an extensive conversation with ReMaTecNews, Jack Stack looks back on the days in the 1980s when, working for International Harvester, the agricultural machine giant, he was seconded to Springfield to rescue a failing subsidiary. As the business was beyond rescue Stack and a number of fellow executives managed to raise sufficient funds to buy the business. The rest, as they say, is history – the history of “remanufacturing” an entire company – and creating an entirely new business model. “I was transferred down here to close the factory and fell in love with the people, he says. “I thought they were tremendous entrepreneurs, the type of people that said “give
Loyalty is one of SRC’s characteristics. These associates all have family links to one or more members of the group.
ReMaTecNews | 14
me the tools to do the job and get out of my way.” Given the tools, the workforce, SRC’s “associates” or owners, perform as Stack believed they would. It’s commonly claimed that SRC provides an inspiring working environment for its 1200 “associates” and this is no myth. A walk around the company’s production halls certainly reveals an unusual level of enthusiasm – and a loyalty that means that some groups have two generations of the same family working here. When Stack himself does the tour, there is no “Mr. Stack” or “Mr. President”, just “Hi, Jack.” Says one line operator: “There is nothing fancy about it. He’s the genuine article.
Here is a remanufacturer with a unique culture – and the culture is at the root of a unique business story. Jack Stack sums it up: “I find that the more honest we are, the more honest we are with each other, the more we trust each other - that’s the whole thing. But I think when people have a system and they all want to make a difference and you give them the opportunity to make a difference, life changes. Life changes for the better.” ReMaTecNews will take a closer look at SRC’s inner workings in a subsequent article. n
A few years ago, he saw me in a parking lot and immediately came over to say hello, asking “How’s your wife?” As she was in hospital at the time, I thought that was a very human thing to do. Do I need to say that I love working here?” The operator is clearly not alone. So far, more than100 business books have featured the SRC story. More than 100 local and national organisations enjoy contributions from volunteers employed by SRC. Many hundreds of SRC employees have learnt accounting and business skills at company workshops, seminars and training schemes.
Jack Stack with associates
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ReMaTecNews | 16
Has waste hijacked circular economy?
By Susanne Baker, EEF, UK I’m getting circular economy fatigue. There. I’ve said it. It not the theory, which I find compelling. It’s the focus on recycling. The European Commission’s recent communication on the circular economy is a case in point. From my perspective, I think it is incredibly unfortunate that it was accompanied by the outcome of the review of waste targets. Reading the resulting press coverage you’d be excused for thinking that the circular economy could be achieved purely by pursuing higher and higher recycling targets. It is almost unbelievable that Europe, which has been championing the waste hierarchy since 1975, is still routinely ignoring
key reduction and reuse options, such as remanufacturing.For me this was reinforced by the second report from Green Alliance’s Circular Economy Task Force. It was a fantastic piece of work and will no doubt be influential in developing further the debate about the need, and opportunity for infrastructure to deal with recyclates. But in my mind this is downcycling the circular economy. With stagnating recycling rates, you may wonder why I have got my knickers in a twist. But from my perspective we’ve missed a key opportunity to start a broad conversation with the wider public around circular economy and what needs to happen to achieve it. I have started to fear that the waste industry has hijacked the circular economy.
Rightly or wrongly, when something is labelled “waste” it affects is marketability. If the circular economy and products are associated with it, become labelled with being something about waste and recycling, what are the implications in the longer term in driving this agenda. Most businesses will respond if their customers demand it. We need to make the circular economy attractive and desirable. I’m not convinced associating it with recycling will do that. Remanufacturing Writing from a manufacturing organisation, my bias is inevitably focused on remanufacturing. It is a clear example of something that fits incredibly well within the circular economy model, the back room, if you will, to the service-based business models that are pursued by circular economy
The author Susanne Baker is a senior climate and environment policy adviser at EEF, the British employers organisation, where she leads the organisation’s waste and resources policy work. She has previously worked as a senior media adviser at the UK’s Department for Environment, Food & Rural Affairs and the Environment Agency Susanne Baker wrote this article in response to a number of recently published papers on the circular economy, not least the European Commission’s communication on a circular economy, followed by the second report of the Circular Economy Business Task Force. The task force was established by the UK government in 2012 to “disseminate leadership thinking and best practice and to provide a forum for policy innovation.”
ReMaTecNews | 17
poster boys such as Caterpillar, Rolls Royce, Xerox and the like. There are some compelling examples of significant environmental benefits of remanufacturing – and not just a diversion of waste from landfill. LCA data that I have seen from remanufacturers show reductions in greenhouse gases across product lifecycles, huge savings in water use, significant reductions in production related energy use and of course less waste sent to landfill and less demand for raw material. Let’s not be under any doubt. Companies involved in remanufacturing have a tough job. To bring a product back to new or better than new condition is by no means an easy job. Innovation is essential to develop the technology and systems to ensure these products leave the factory in a condition that customers want. The Cat Reman process, for example, uses laser light cleaning to remove contaminants like paints, rust, carbon and gasket. In our report, published last month, on resource security we studied the strategies other countries were taking in this space. Focusing on nations with a strong manufacturing presence – China,
US, Japan, South Korea and Germany – we found highly sophisticated resource strategies ranging from an innovation led approach, such as that seen in the USA, a resource efficiency approach as typified by Germany and an all-out resource grab as typified by China. But of all the countries studied three things really leapt out. Firstly, political leaders in these countries recognised that resource security was a competitiveness issue. Secondly, that the strategies recognised securing feedstock, using resources efficiently and stimulating secondary markets all had an equal role to play. Thirdly, innovation underpinned all of these objectives. In comparison, on the face of it, the UK seems to think recycling is the only game in town. But there remains real opportunities to change this mind-set. While policy wonks in the Commission and UK government may struggle with how they can legislate for radically resource-efficient business models there is plenty they can get their teeth into to stimulate remanufacturing. n
Here are the top asks: • Europe is the only major global economic region without its own remanufacturing innovation hub. Let’s make the UK Europe’s remanufacturing centre of excellence. • Look at existing regulation through the prism of the circular economy. Remove regulatory barriers which legally discriminate remanufactured goods. • Incentivise manufacturers to invest in capital equipment that enables them to remanufacture by offering tax cuts. • Create a market for remanufactured goods through government procurement. Do this in discussion with industry so that a reasonable and realistic pace can be set. Trial serviceorientated specifications. • Mediate discussions between local authorities and industry to explore cost-efficient reverse logistics systems so products can be brought back to site cheaply.
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SDA import-export is specialized in used starters and alternators. In our 1500m2 warehouse, we have a stock of more than 50 000 pieces. SDA has very high quality standards. We check all the car parts according to strict rules. We also deal in: airconditioning pumps, turbos, commonrail injectors en commonrail pumps, steering racks and steering pumps. Interested in buying or selling? Please feel free to contact us! Tel: +31 (0) 492 524 463
Large stock - High quality - Years of experience SDA Import-Export BV, Duizeldonksestraat 7, 5705 CA Helmond, The Netherlands Phone: +31 (0) 492 524463 Fax: +31 (0) 492 544677 www.sdaim-export.nl tony@sdaim-export.nl
ReMaTecNews | 19
“New opportunities for reman around the world” says US Govt.
By Steve McQueen Remanufacturers with international ambitions will be delighted to learn that the third edition of “Automotive Resource Guide: A Reference for U.S. Exporters”, now features data about remanufacturing markets in 50 different countries, worldwide, for the first time. US embassies and consultants from around the world were responsible for harvesting the data and the US Commercial Service - a trade promoting arm of the US Department of Commerce’s International Trade Administration - has merged the information into a single, coherent report. Although these guides are written with the US business subscriber in mind, the extra dimension provided about used and remanufacturing prospects this time around, seems valuable for prospective remanufacturing entrants from any country. “We appreciate the fact that remanufactured parts is one of the fastest growing automotive industry sectors, and intend this free publication to be a resource for a wide-array of U.S. auto manufacturers and service companies looking to expand their business internationally,” says Eduard Roytberg of the US Commercial Services told ReMaTecNews. The report suggests there are strong “distinct market challenges and opportunities” in countries spread widely, including examples from South America, Europe, Asia, Austral-Asia and Africa.
“Younger consumers realise remanufactured parts are just as durable as OE parts, and they are less expensive, as well as environmentally friendly.” The data is country specific and the prospects listed are both good and bad. For example, in the United Arab Emirates, a 5 percent import duty for new parts also applies to remanufactured or used parts. That is something that could be considered a discouraging factor. In Australia, however, the news is more positive. “The commonly held view is that prospects for suppliers of imported remanufactured parts would be rated as fair to good.” In France, remanufacturing is expected to grow as “insurance companies are now considering utilizing remanufactured parts over more expensive replacement parts.” Israel has a remanufacturing market that is well
developed, but “the MOT approval process restricts imports and helps foster a strong domestic remanufacturing business sector.” Prospects for rapid growth of U.S exports in this area are, therefore, said to be “dim”. In Italy, the news is better. The “use of remanufactured parts continues to spread “in delicate components like those in steering and brake systems: pumps, callipers, cylinders as well as electric steering columns and electromechanical steering boxes.” Japan Regardless of the country of origin, remanufacturers might find possible future potential in Japan, where sales of remanufactured motor vehicle parts and remanufacturing equipment are close
Eduard Roytberg
ReMaTecNews | 20
to nonexistent. Japanese consumers have not yet embraced remanufactured/rebuilt parts, but the report says this is slowly changing. Jordan Jordan’s parts remanufacturing industry is not developed but used parts are widely available. There is potential for establishing a remanufacturing industry in Jordan, where prospects for remanufactured, rebuilt, and/or used motor vehicle parts are said to be promising. Mexico The remanufactured auto parts market is highly developed in Mexico, where several remanufacturing companies specialise in water pumps, alternators, starter motors, air conditioning compressors, carburettors, fuel injection systems, and some suspension parts. There is also a strong distribution network as most of these remanufactured or rebuilt parts are sold through auto parts stores. Trade Barriers The report is designed to provide inside information
about barriers to trade entry, market trends, likely business protocols and the levels of certification that new entrants could anticipate. The data includes tabled ratings that ‘score’ each country on their potential for a successful venture into remanufacturing. Australia, Dominican Republic, Hungary, Italy, Kuwait, Nigeria, The Philippines and The Netherlands are rated high (3/4). All the more disappointing, then, to find that on turning to the relevant section on The Netherlands, all remanufacturing market data is conspicuous by its absence. ReMaTec shows Thankfully, details about the 2015 ReMaTec Remanufacturing Show in Amsterdam are there. Perhaps the view is that this is all you really need to know in order to gauge the strength of the remanufacturing potential in that particular market.
evidence is needed – of the credibility given to the data and the overall value of the report to remanufacturers. n
The Automotive Resource Guide can be downloaded from the website of the U.S. Commercial Service: http://1.usa.gov/1s8uq2Z
This latest edition is co-sponsored by Amsterdam RAI, the organiser of the 2015 ReMaTec Shows in Amsterdam and also the BigR/ReMaTecUSA Show in Las Vegas. Perhaps that’s further evidence - if
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ReMaTecNews | 22
Italy’s SERMEC: a century of innovation
“All in the family”: Five generations of the Ricci-family have worked at SERMEC. And there is more to come. Thermal resorts deep in the countryside are not usually where you go looking for advanced tech-businesses. Nor, for that matter, are they often home to top-rank remanufacturing enterprises. Bagno di Romagna, about 90 miles south of Bologna in the Italian region of Emilia-Romagna is an exception. Although for centuries Bagno’s inhabitants have made a decent living from its baths, today another economic factor has become even more important. That factor is SERMEC and its sister company, Officine Meccaniche Ricci, which between them form one of Italy’s most important remanufacturing businesses. Counting among its customers some of the world’s leading car makers, SERMEC (SErvice Remanufacturing MEChatronic) is living proof that smaller specialised business partners can thrive in the world’s increasingly competitive automotive markets. The pre-condition, of course, is supply reliability, product quality, service-mindedness and, perhaps, more than anything else, a
contented workforce. Once these are in place, the groundwork for serious progress is in place. That, at least is the philosophy of Giovanni Ricci, the 49 year-old Managing Director who, together with his two brothers, Alessandro and Stefano, have headed up SERMEC since 1992 and taken the business into high-tech remanufacturing and top-tier partnerships. So far, it works. “We want everyone working here to smile when they arrive in the morning - and cry when they leave in the evening,” Giovanni Ricci says with
a smile that does not undermine the seriousness of the message. “For us the welfare of our employees is paramount. We genuinely want to run the business as if we’re one big family.” Family business Running the business like one big family is, perhaps, less challenging for the Ricci companies than for some others. Nearly 10 of the 120 strong workforce, in fact, are members of the Ricci family, brothers, sons, daughters and grandchildren – and the rest of the staff are more or less “family”
Two companies – one business SERMEC: Driveline and chassis technology specialist for electric steering and pumps, power steering racks, pump boxes, manual and automatic gearboxes, front and rear suspensions, differentials and rear axles. Officine Meccaniche Ricci: Driveline and chassis technology specialists for manual, automatic and automated gearboxes, front and rear suspensions, differentials and rear axles and electric and hydraulic retarders.
ReMaTecNews | 23
as well. This explains why a significant number of them have worked for SERMEC for 10, 20 or more years. Close family ties, therefore are part of the fabric of SERMEC. “Yes, SERMEC is a family company and we like to consider our staff as family members. With their skill, culture and above all, inspiration, they all contribute to the success of our business,” Giovanni Ricci says.
“We want everyone working here to smile when they arrive in the morning - and cry when they leave in the evening.” A closer look at the company’s history is enlightening. Founded by Alfredo Ricci in 1896, the business is currently run by the fourth generation of the family with the fifth, Carlo, Federico, Francesco, Gianmarco, Margherita,
Giovanni Ricci, Managing Director Nicola, all being involved. As Giovanni Ricci says, “I believe that one day, a sixth generation will join us, too. I’m almost sure of that.” Back in the founder’s days, Officine Mecchannice Ricci started out as a small vehicle repair and service shop in Bagno. In the early 1920s, Alfredo’s son, Leo, further expanded its activities and from the late 1940s his son, Franco Ricci, followed in his father’s footsteps and built up a rewarding business relationship with the giant of
Italian vehicle manufacturing, FIAT, which thrives to this day. When Franco retired in 2008, he left SERMEC in the capable hands of his three sons, Giovanni, Alessandro and Stefano, the current management. Next level By then SERMEC, which the family founded in 1992, had long since established a reputation as a leading player in the Italian – and European – remanufacturing of driveline technologies, transmissions, differentials, suspensions and steering racks. In doing so, the Ricci family took their business to the next level by creating fully industrialised reman processes which, in subsequent years, would be continually enhanced by the addition of high-tech machinery and processes. A visit to the SERMEC plant in Bagno tells the story of continuing development and the company’s commitment to innovative tools and methods. “Constant development of the product lines allows for a wider range of parts. SERMEC, therefore, focuses on a re-engineering process based on “reverse engineering” analysis which results in ongoing quality improvement for the final product,” the company says. “As a result, each month sees the development of new products for the latest vehicles in the market.” Ongoing training Focus on technological excellence to ensure product quality is not the only string to SERMEC’s bow. Extensive training programmes for employees at all levels are a recurring theme in daily life in Bagno. Explains Giovanni Ricci: “With knowledge, ordinary people can do extraordinary things. That’s why it’s so important to us that our people are continuously updated on technical
Three brothers at the helm: Alessandro, Giovanni and Stefano Ricci
ReMaTecNews | 24
developments that are relevant to our reman processes. In the final analysis, if your partners trust what you’re doing, they will stay with you.” Reflecting on the reman industry in general, he adds: “We look at our competitors with respect and we hope that they do the same with us. We do things in our own way and they do what they
do in theirs. There’s room for everybody. There’s certainly room for us – that’s how it’s been for a hundred years and will be for quite some time to come.” During the summer, SERMEC has added some important automotive brands. Moreover a new
important business project will be announced in November during the AAPEX show in Las Vegas. Today SERMEC is the only European certified rebuilder authorized by the original manufacturer for electric powersteering in Fiat, Opel, Ford and Citroen models. As Giovanni Ricci puts it: “SERMEC will be here for a while yet”. n
SERMEC in brief • Location: Bagno in Romagna • 120 employees • 40,000 sq. m plant area • 10,000 sq. m manufacturing/remanufacturing area • 46,500 reman units per year. • 75,000 part numbers in stock Main product lines: • Electric power steering • Hydraulic and manual power steering • Electric and hydraulic pumps • Automatic, automated and manual gear boxes • Front and rear axles.
SERMEC operates a high-tech production environment
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ReMaTecNews | 26
Melett towards Chinese markets The potential of China’s car industry – and the country’s growing interest in all things remanufacturing – continues to attract western remanufacturers/suppliers. One recent example is UK-based Melett, a rapidly expanding supplier of turbocharger repair kits and individual turbo components to the professional turbo repair industry. Melett recently opened a new production facility in Chanzhou province east of Shanghai and the company is confident that the move will lead to further product lines at the facility. “We recognise the market price for turbo parts has reduced significantly over recent years. However, we were previously unable to react to this as quickly as we would have liked,” says Ian Warhurst, Melett’s Owner and Managing Director.
“Over the past two years, Melett has invested heavily in setting up the extensive premises with the latest machinery and technology for turbocharger parts production.”
Ian Warhurst, Melett’s Owner and Managing Director “Now our plans of the past few years are coming into play and we are in a position to react to price pressures, speed up the product development processes and be more competitive in the market. Most importantly, we have managed to do this whilst maintaining, and in some areas, actually improving quality as we are now 100% in control of production.”Currently, the new facility in Chanzhou employs a workforce of some 30 operators, engineers and administrators but the size of the plant allows for expansion as the need arises - which judging by the company’s recent performance is more than likely to happen. In 2012, Melett, which is based in Barnsley in Yorkshire, opened a subsidiary in the US and last year acquired an Eastern Europe subsidiary in Bydgoszcz, Poland. The opening of the facility in China completes a rapid expansion phase,
although ongoing growth in China is very much on the cards. “Over the past two years, Melett has invested heavily in setting up the extensive premises with the latest machinery and technology for turbocharger parts production,” says Ian Warhurst. “The fact that Melett owns the facility 100% gives us the ability to leverage cost benefits to improve competitiveness and gain better control of new product development, quality, production and distribution.” UK Expansion In addition to the new manufacturing facility, Melett has further expanded its UK operations, moving their in-house Core Production department to a new, much expanded production facility close to the UK Head Office in Barnsley. This, the company says, allows it to significantly increase capacity to accommodate an expanding product range and meet the market demand for quality core assemblies. Award winner Three times winners of the prestigious UK Queen’s Award for Enterprise 2006, 2009 and 2014, Melett currently supplies CHRA and turbocharger repair parts to turbo reconditioners in over 100 countries worldwide. Its range allows turbo reconditioning, remanufacturing and repair of turbo models originally manufactured by Garrett, Holset (Cummins Turbo Technologies), Borg Warner (Schwitzer & 3K), MHI (Mitsubishi), Komatsu, Toyota, IHI & Hitachi. n
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ReMaTecNews | 28
TRW and ZF - talking about merging? Could TRW Automotive Holdings Corp. and Germany’s ZF Friedrichshafen AG soon join together to form the world’s second largest auto-parts supplier? The question is subject to intense speculation after TRW, the world’s biggest car-safety equipment supplier and a significant player in the reman industry, confirmed that it has received a takeover approach from a potential buyer. That buyer is Germany’s ZF Friedrichshafen AG, another industrial giant with a presence in remanufacturing. Both companies confirm that they are talking. At the time of ReMaTecNews’ deadline, however, no further information was provided. Combined the two groups would have annual sales of close $40 billion in annual sales and place ZF as the world’s second largest auto-parts suppliers after Bosch. “With what ZF and TRW each bring, they would have all the dynamics you would need under one roof to have a fully
automated vehicle,” said Richard Hilgert, a Chicago-based analyst with Morningstar Inc. While no specific price has been discussed, ZF is believed to value TRW at between 11 billion and 12 billion dollars. “The company is evaluating the proposal as well as other strategic alternatives which may enhance stockholder value,” TRW said in a statement. Based on sales, ZF ranks ninth among auto-parts suppliers with TRW at 11th, according to industry magazine, Automotive News. Combined, ZF-TRW would surpass Japan’s Denso Corp., which has about $35.8 billion in auto-parts sales and ranks behind Germany’s Robert Bosch GmbH.For TRW -- whose shares are trading at record highs -- a sale now would capitalize on a global rebound in the auto industry, Hilgert said.
billion dollars in 2013. Friedrichshafen-based ZF makes steering systems, clutches and axles, and transmissions and reported sales of 16.8 billion euros last year. The acquisition of TRW by ZF would be the largest auto-parts takeover since Continental AG, the German maker of brakes and shock absorbers, acquired Siemens AG’s Automotive unit for about 11.4 billion euros in 2007, Automotive News says. n
Safety technology and steering systems Headquartered in Michigan, TRW specialises in safety-related products reported sales of 17.4
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ReMaTecNews | 29
For more information please contact Ewoud Barink | phone +31 (0)6 51 44 83 67 | advertising@rematecnews.com | www.rematecnews.com Cleaning equipment | Consultancy - Research | Cores | Environmental products | Lubricants - Chemicals | Organisations | Associations | Parts for remanufacturers | Production | Remanufactured products | Test equipment | Rates 2014 | 1 placement € 160 | 4 placements € 610 | 6 placements € 875
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
Cleaning Equipment
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
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
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
Remanufactured Products
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
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
Test Equipment
BU DRIVE GmbH Friedrich-Ebert-Str. 129 49811 Lingen/Ems Germany P +49 (0)591 71050 E info@bu-drive.com W www.bu-drive.com
Diesel Line Srl Via Verona 7 31046 Oderzo (TV) Italy P +39 0422 717572 E info@diesel-line.it W www.diesel-line.it
Lizarte S.A. Polígono Agustinos C/B 31013 Pamplona, Navarra (Spain) P +34 (948) 303436 E info@lizarte.com W www.lizarte.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
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
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
Kotek America Inc. 17752 Cowan ST Irvine, CA 92614 United States P 1949 863 3126 E sales@kotek.com W www.kotek.com
Starters & Alternators
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
HEAVY DUTY WORLD
ReMaTecNews | 30
Andre Niermann moves to new home German remanufacturer of starters and alternators, Andre Niermann, has taken possession of a new HQ. On July 30 the company relocated from its long-standing address in Werner-von-Siemens Strasse in Gütersloh in Nord-Rhein Westphalen to the Henry-Ford-Straße 2-4. The relocation increases Niermann’s current production, storage and administrative area by 3000 sq. m. - to 6000 sq. m. “As part of the move, we have renewed and modernised our production lines as well as carried out certain organisational changes,” explains Niermann’s Martin Gabor. “A completely new telecommunication system and computer infrastructure will provide better accessibility to our employees and easier access to our data base. The new organizational structure ensures shorter distances and an easier communication in and between our departments.“ The measures aim at increasing efficiency by up to 30 percent and a maintain
Andre Niermanns new home in Gütersloh, Germany a high level of service, the company says. Andre Niermann has a monthly production capacity of 9000 units which are supplied to 1800 customers in 57 countries worldwide. The company claims to offer one of the world’s
largest ranges of starters and alternators for automotive, construction machinery, marine, forklifts, industrial engines, trucks and other industrial applications. n
HEAVY DUTY WORLD
ReMaTecNews | 31
Cummins moves into gasoline engines Cummins has developed an engine designed to operate on E85 - a blend of 85 percent ethanol with 15 percent gasoline. While Cummins has developed natural gas engines in the past, this is the first time the global manufacturer of on-highway, offhighway, industrial and marine diesel engines has built a gasoline production line. The company developed the ETHOS (ETHanol Optimized System) 2.8 L engine and powertrain package as part of the Ultra-Low Carbon Powertrain Program sponsored by California’s Energy Commission (CEC). Cummins claims the engine and powertrain can reduce carbon dioxide (CO2) emissions by as much as 80 percent compared with gasoline-powered medium-duty trucks. The Cummins ETHOS 2.8 L is designed specifically to use E-85 and operates at diesel-like cylinder pressures while using advanced spark-
ignition technology, the company said. According to Cummins, it delivers the power (up to 250 hp) and peak torque (up to 450 lb. ft.) of gasoline and diesel engines nearly twice its displacement. The Cummins ETHOS 2.8 L engine also incorporates an integrated stop-start system,
which further reduces fuel consumption and emissions. Cummins-integrated specific system controls, along with a robust starter, smart alternator and sensors, are all designed to handle the additional stop-start duty cycle and maintain reliable operation over the life of the engine. n
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Transatlantic JV aims high in the US By Steve McQueen A new remanufacturing joint venture to be known as Ceramex North America LLC (CNA) is targeting a share of the US on-road heavy-duty Diesel Particulate Filter (DPF) replacement market. Partners are SRC, the renowned Missouri based remanufacturer and Hexadex of the UK. But what is Hexadex? Hexadex is, in fact a British-based holding company with a very low profile in comparison with its three main operating subsidiaries of which one, Ceramex, specialises in DPF cleaning and inspection. Its two other subsidiaries, Eminox designs and manufactures emission control systems for heavy-duty vehicles, while Teconnex manufactures clamps and couplings largely for exhaust and emissions systems. The joint venture between the rwo parties has one eye on the emerging off-road market. With around 300,000 DPFs currently serviced each
year and an expectation that it will rise to over 500,000, estimates about the potential size of the market suggest it could be worth up to $200 million in a few years time. In the US, local cleaning services dominate 90% of the DPF market, but there is a requirement for Original Equipment Manufacturers (OEMs) to supply remanufactured parts. Springfield-based SRC Holdings already has a small share and the plan is to expand this with the help of advanced remanufacturing technology that exists within the Hexadex group of companies. Ceramex, with its Xpurge technology, holds the keys that could increase the joint venture’s market share, says Rob Rule, managing director of Ceramex in the UK.
near Springfield, SRC’s HQ in Missouri and expect to be up and running by the end of the summer.”
End of summer “In the US, there are very few well established OEM exchange programmes for remanufactured [DPF] service replacement parts. CNA will work with OEMs and perhaps some of the major fleets. We are currently refurbishing facilities at Monett,
The emerging off-road market for DPF service replacements could be a major source of revenue for the new joint venture. It is expected that, in this market, OEM dealer networks will supply a much larger proportion of remanufactured DPFs. That should put CNA in a position to clean up. n
Rob Rule - Managing director of Ceramex
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Ewoud Barink Tel.: 0031 (0)6 5144 8367 ReMaTecNews REMANUFActURING INtERNAtIONAL
2014 - NO 1 - VOLUME 14
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ReMaTecNews | 34
For further news about Apra Europe, please visit www.apra-europe.org
The missing word… By Peter Bartel, Chairman, APRA Europe It is now more than ten years since the End of Life Vehicles directive [ELV] was published by the European Union. Aimed at preventing vehicles being scrapped in the countryside, the guidelines gradually became legally binding in all EU countries. Later they were used as a blueprint for local laws across the world. For remanufacturers the most important areas were the NAFTA countries and China. The drafting of the guideline was carefully monitored by all automotive associations to ensure against negative repercussions for members’ businesses. One thing we didn’t realise, however, was that an essential word was missing. While the ELV in great detail describes how to
measure and document the recycling rate of scrapped vehicles one sub-clause states that “reprocessing” of used parts should be preferred to “scrapping.” Unfortunately, all associations missed the opportunity to request that the word ‘reused’ be replaced by ‘remanufactured’, which would have had far-reaching effects on today’s remanufacturing industry. Imagine that remanufacturing became part of local law in many countries as the preferred end-of-life application for vehicle parts. If that happened we would have no customs issues with Turkey, China or Brazil. We would have excellent arguments to demand tax credits for our industry as well as many other advantages and opportunities. Yet, we missed the chance by omitting to add this single word “Remanufactured” more than ten years ago.
Potential disaster We are in a similar situation today. The legal guidelines from the United Nations to limit crossborder shipments of electronic waste are currently being modified. This is the right approach to ensure that hazardous electronic waste is not used as landfill in poor regions across the world. Nevertheless, it would be a disaster for the remanufacturing industry if cross-border traffic for electric and electronic cores were to be forbidden. As the association representing the automotive parts remanufacturing industry worldwide, APRA is driving and coordinating a series of joint activities with other associations to ensure that the future guidelines of the Basel convention do not limit cross-border traffic of cores as used parts for the purpose of remanufacturing. Put simply, we are fighting to include the word ‘remanufacturing’ in these directives.
Defining a core From time to time other associations ask APRA to define the term ‘core’ as understood within the automotive remanufacturing industry. For most of us, this question - which is becoming increasingly important in current political discussions - is easy to answer.
In a world where large amounts of electronic waste are exported to underdeveloped countries as valuable goods to be reused locally, but in reality recycled or left in landfills to pollute the environment, it is understandable that crossborder trade in used parts is becoming more and more restricted. On the other hand, the remanufacturing industry needs to trade cores in order to provide remanufactured products which have clear environmental benefits - to the markets. As the only association that represents the automotive remanufacturing business worldwide, it is a crucial task for APRA to define what a core is. In our understanding, a core is simply a used part intended to become a remanufactured part*. During reverse logistics, it is properly protected, handled and identified for remanufacturing to avoid damage and preserve value. A core is not waste or scrap and is not to be reused before remanufacturing. We intend to lobby politicians to ensure that this wording is employed in future legislation in order to allow remanufacturing to develop worldwide.
*As per the common definition of a remanufactured part (by ACEA, APRA, CLEPA, FIRM and VDA). New members • Emmetec, Italy • O.R.P.A.V., Italy • Wolk after sales service, Germany • abh Köln, Germany • CTDI GmbH, Germany • ROZRUSZNIK.EU, Poland • E.I.T Edel International Trading, France • Dieseltechnika, Poland • Savi Elettronica, Italy • ECU Testing, Great Britian • A P Diesels, Great Britain • Flight Systems European Group, Czech Republic • Sulzer Metco AG, Suisse • Emporio della Batteria, Italy • Di.Pa Sport, Italy • A.3 Aprofitament Assesorament Ambiental, Spain
ReMaTecNews | 35
Telling the story of remanufacturing By Peter Bartel I am regularly asked to support our members with communication packages. This is in line with APRA’s mission to communicate the advantages of remanufacturing through a narrative that underlines reman’s environmental and financial advantages. The benefits for our members will be more focused and measurable if the message reaches their partners directly. The advantages of
remanufacturing should be understood by local politicians as well as by employees to ensure local support and build the image which our members need in order to ensure that their business grows in a sustainable way. At our 2014 symposium in Milano Marittima near Rimini in Italy, we had the chance to visit the SERMEC remanufacturing plant. Besides showcasing its impressive operations and highquality products, Giovanni Ricci presented his company by telling the remanufacturing story in a
perfect way. Using the opportunity to involve local press and politicians and showing that success in remanufacturing is based on the commitment of the employees to their work, Giovanni provided a blueprint for boosting a company image by communicating in the right way.
Peter Bartel
APRA-Europe: Growth for 2014 The strong focus on providing measurable benefits to its members through a variety of activities has been the guideline for APRAEurope since 2012. Highly appreciated by the remanufacturing industry, this approach has led to growth for the association, with new members
phone: +49 5241 600 58 0
of all categories joining. The mix of successful new owners is impressive and reflects the general trend for remanufacturing to be accepted as more than just a production operation as market intelligence, science and services are becoming more important.
www.niermann-electric.com
APRA-Europe expects growth above 20% in 2014. This will support the association’s efforts to generate growth in the remanufacturing industry by promoting the multiple benefits of remanufacturing and connecting all market players.
fax: +49 5241 600 58 58
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ReMaTec Events
ReMaTecNews | 37
Government of Turkey supports participation in BigR/ReMaTecUSA Following a proposal by Turkish supplier of brushes to the reman industry, the Turkish government has included BigR/ReMaTecUSA in Las Vegas in its list of foreign fairs to which Turkish exhibitors are entitled to financial support. The decision means that Turkish remanufacturers and suppliers can now obtain refunds of up to 70 per cent of the costs paid for stands at the BigR/ ReMatecUSA.
shows so I wrote to the Ministry of Economy and they agreed to include it in the list. I’m pleased that other Turkish remanufacturers and their suppliers now have opportunities to showcase their products and services at this important show. I think, this will encourage them to do so.”
Sirri Kardes - Managing Director of Kardes A long-standing manufacturer of carbon brushes and brush holders to remanufacturers of starters and alternators, Istanbul-based Kardes Elektrik, has itself taken advantage of the new regulation and will be exhibiting at the Las Vegas reman show November 1-3 for the first time.
ReMaTec team expanded In the run up to the BigR/ReMaTecUSA show in Las Vegas, Amsterdam RAI has extended the ReMaTec team to include ms. Puck Huber as Operations Coordinator.
Encouragement “The subsidies for companies wishing to participate in foreign shows are widely available,” explains owner and Managing Director of Kardes, Sirri Kardes. “However, I realised that BigR/ ReMaTecUSA was not among the authorized
Exhibitors have two choices for participation in the government scheme. They may either join together with others in a Turkish pavilion or opt for their own separate booth. Among the countries where companies in the reman industry are given preferential treatment in terms of exhibition subsidies are the US, Brazil, China, Mexico, Thailand and Indonesia. n
Visitor registration now available Remanufacturers planning to attend BigR/ ReMaTecUSA can now register via www.bigrrematecusa.com. Visitor registration offers separate entrance badges for “Expo Only” and “Full Conference” attendees.
Having worked for Amsterdam RAI, owner of the ReMaTec shows in Amsterdam and co-organiser (with APRA) of the show in Las Vegas, since 2010, Puck Huber has been responsible for the Intertraffic shows in The Netherlands, China and Istanbul. She also worked with the 2013 edition of ReMaTec in Amsterdam. “We worked successfully to make a great show in 2013. Now we will do the same for the shows in November and in Amsterdam in 2015,” she says.
Expo Only Pass $ 45.00 Standard Rate / $ 30.00 Discounted Rate* Full Conference Pass $ 250.00 Standard Rate / $ 225.00 Discounted Rate*
Having responsibility for operational maters for the two shows, Puck Huber can be contacted at p.huber@rai.nl. n
Expo Only Passes give access to show floor for three days and include educational sessions at the ReMaTec Theatre. Full Conference Passes give access to the show floor, 2 day APRA Seminar
Optional RemanGolf Tournament:$90.00 (incl. green fee, 9 holes, snacks, drinks and transportation. Does not include club and shoe rental).
program, Opening Reception and 2 Breakfasts. The APRA Seminar program can be found via www.bigrrematecusa.com. * Discounted Rates apply for members of the following associations: APRA, MERA, AERA, ADS, PERA and ERA. n
ReMaTecNews | 38
Engine remanufacturing – facing the electronic challenges As a result of environmental pollution and climate change, the demand for comfort and safety from end users combined with the rapid development of electronics and data processing, electronics has become a crucial element in modern cars. Only visionaries could foresee the full extent of this ten years ago. Modern cars – which now also include trucks, agricultural and construction equipment, stationary machines etc. – are a complex system of interrelated components. When a malfunction occurs the entire system has to be diagnosed and analysed. An engine can no longer be regarded as an isolated component but is an integral part of a system. This means that we need to broaden our definition for engines. The mechanical nature of the combustion engine will not change significantly, except maybe in terms of materials. Even the current discussions about alternative dynamics – apart from fully electronic solutions – will not have a significant impact on our industry within the next five to ten years. But what is the benefit in having competence and knowledge in engine technology, and using it in remanufacturing to OE specifications, if our
remanufactured engine does not work properly in practice? That’s why the customers (independent repair shops, fleet operators and end users) must involve the engine remanufacturer in the failure analysis process. Facing the needs for investment or cooperation. If our industry wishes to offer a complete repair and service programme, and be a competent part of the independent repair market as well as a respected alternative to the service organisation for OE, we must invest in efficient tooling and updated knowledge or cooperate with colleagues and other external services.
are not available on the market as former projects and activities have failed due to financial reasons. It may be time to start a new trial so as to tap into existing state subsidy programmes. This could be a challenge for FIRM to which an open discussion between the members could provide an answer.n
Where this recommendation does not fit the individual business strategy of engine remanufacturers, they are forced to focus on niche targets (mechanical repairs, old timers, specific brands, etc.). Exchange engines and electronics Meanwhile, major players in our industry, who specialise in offering exchange engines (and not remanufacturing customers’ engines), are faced with an additional challenge: dyno-testing of ECU controlled engines. Simulators, or ‘black boxes’,
By Volker Schitttenhelm
Spare part distribution and technical information Engine remanufacturers constantly face the problem of getting spare engine parts from the IAM (independent aftermarket). Serious and qualified independent spare engine part distributors, as well as the OE spare part manufacturers behind them, do not produce or stock spare parts for engines which have been on the market for more than five or less than two years. Alternative sources from spare part manufacturers working to the ‘reverse engineering strategy’ come with potential quality issues and, therefore, risks of engine damage – with all the associated consequences.
But does our industry really have a sourcing problem? Car manufacturers such as VW, Opel some years ago, and now BMW and MercedesBenz have launched activities to improve turnover and increase their own workshop capacity utilisation. VW’s NORA or Opel’s FWLZ both offer strategies to provide independent workshops with original spare parts under favourable pricing conditions and technical know-how (specifications and assembling/installing instructions) – supported
by specially trained and skilled OES technicians. These OES activities should be a wake-up call for the independent spare engine part manufacturers (makers of pistons, bearings, gaskets, etc.) to really support the engine remanufacturing segment. If this is not heeded remanufacturers will miss out on profits - to the long term detriment of the the whole industry. n For more information about FIRM, please see www.FIRM-org.eu
PEOPLE ON THE MOVE
ReMaTecNews | 40
CLEPA chief takes over at Lotus Jean-Marc Gales, the head of the European Association of Automotive Suppliers, CLEPA, since 2012 has left the organisation to take up the position of CEO of British specialist carmaker, Lotus. The move brings the highly experienced automotive executive back into the saddle of a well-known car brand after having steered the suppliers’ trade association in Europe through an expansive period. During his time in Brussels Gales played a key role in turning around the association through a number of strategic initiatives, including streamlining the working processes and increasing corporate members from 82 to 112. He also
established a lobbying strategy with the European Parliament and European Commission and helped define the Industry Research & Innovation Strategy and Roadmap for 2025. Before joining CLEPA, the British- and Germaneducated Luxembourgian was CEO of PSA Peugeot Citroën between 2009 and 2012, where he introduced the Citroën DS line. Previously he worked for Daimler, General Motors and Volkswagen. Jean-Marc Gales holds an MSc in Management from London’s Imperial College and an MSc in Mechanical Engineering from the University of Karlsruhe in Germany. n Jean-Marc Gales
New reman-oriented recycler Craig Barlow, a former business development executive with UK core supplier, Premier Components, has launched a new recycling venture, Norddeutsche NMR Metall-Recycling GmbH & Co.KG south of Hamburg in Northern Germany. After several years with Premier, Barlow now offers guaranteed dismantling and melt-down processes for OEMs that, for one reason or another, wish to safeguard the disposal of surplus or obsolete materials. “Our policy is to securely scrap off VM, OEM, and remanufacturers’ parts and with a network of 90 disposal plants in Europe we have the operating resources contracted under one waste management company, “Craig Barlow told
ReMaTecNews. “I believe there are considerable opportunities in the market for someone who can offer a good disposal management service to manufacturers and remanufacturers,” Craig Barlow told ReMaTecNews. “We already have contacts with a large number of businesses and we have signed up with APRA as, I believe, the first recycler to do so.” “The issue facing VM, OEM and remanufacturing companies is security and the Industry is well aware of this. NMR guarantees that material assets are destroyed as requested by the customer, therefore protecting their own market share and investments,” Craig Barlow says. n Craig Barlow
Dennis Jacinto returns to reman For many years Dennis Jacinto owned and operated Lester Catalogue, the wellknown part numbering system for electrical products. When, in 2011, the business was acquired by WAI Global, Jacinto continued in the driving seat for a while until resigning from his creation the following year. Now Jacinto is back in remanufacturing. A former Chairman of APRA (2011/12) and present board member of the association, he has started a new business in Newcastle in his home state of California – YouTech Group LLC, which offers data services and cataloging software for the automotive industry.
Dennis Jacinto retires fro
“Youtech’s focus is on services without confusing language or up-selling products that you’ll likely never need,” he said. “We pride ourselves on our knowledge, experience and honest service to our customers. No hidden hooks, no technical jargon, just the products best suited to the customer.” n
Dennis Jacinto
A side ly a Les Glo in 2 tur bus tion and bec wh Ass con this Les Ori
ReMaTecNews | 41
Change at the top at Clepa CLEPA, the European Association of Automotive Suppliers has announced the appointment of Paul Schockmel as its new Chief Executive Officer. A native of Luxembourg, Paul Schockmel will take up his new position on 25 August succeeding Jean Marc Gales, who stepped down at the end of April 2014.
During a 20-year professional career spent in the automotive industry, Paul Schockmel gained broad experience in corporate and business development, innovation management, communications and public affairs. Among other professional activities, he has held the position of President of the Luxembourg Automotive Components Supplier Cluster and, since 2012, has been a Member of the CLEPA Board of Directors.
Announcing the appointment, Clepa’s President, Arnaud de David-Beauregard, said: “Mr. Schockmel brings a great combination of strategic, operational and public policy experience. I am very confident that he will provide strong leadership at the helm of the CLEPA Brussels Office and help us even better serve the needs and promote the interests of our members, as well as the entire European automotive industry.” 20-year career Prior to assuming this position, Paul Schockmel, 52, was the Vice-President Corporate Strategy and Marketing at IEE S.A. in Luxembourg.
”I am proud and excited to take up this new challenge. Through the outstanding commitment of its corporate and national members, Clepa will be in a strong position to develop highly-efficient and sustainable mobility solutions”, he said. n
Paul Schockmel, CLEPA’s new CEO
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INTERNATIONAL EVENTS & TRADE FAIRS
01/09 - 03/09/2014
ReMaTecNews | 42
16/10 - 19/10/2014
REMan china
AUTOSHOW NITRA
Engine China, Power China and MEICE Beijing | China 06/09 - 14/09/2014
International Exhibition for Passenger and Commercial Vehicles and Accessories Nitra | Slovakia
CDMS - Chengdu Motor Show
16/10 - 26/10/2014
International Exhibition for Automobile and Accessories. Chengdu | China (PR)
S.A. Salao do Automovel nternational Automobile Trade Show Sao Paulo | Brazil
15/09 - 17/09/2014 AUTOMOTIVE TESTING EXPO CHINA
17/10 - 19/10/2014
Shanghai, China | (PR)
Classic Expo
16/09 - 20/09/2014
International Classic Car Exhibition Salzburg | Austria
Automechanika Frankfurt Frankfurt/Main | Germany
19/10 - 21/10/2014 CIAPE
25/09 - 02/10/2014 IAA Nutzfahrzeuge
China International Auto Parts Expo Shanghai | China (PR)
Commercial Vehicles. Hanover | Germany
22/10 - 24/10/2014 25/09 - 27/09/2014
SAECCE / CAEMEX
Autoworld Saratov
26/09 - 28/09/2014
SAE-China Congress & Exhibition / China Automotive Engineering and Manufacturing EXPO Shanghai | China (PR)
AUTOFEST (AUTOMARKET Autosalon)
24/10 - 26/10/2014
Saratov | Russia
Automotive Exhibition. Kishniev | Moldova
Tbilisi Auto Show/Caucasus AutoShow
03/10 - 05/10/2014
International Specialized Fair of Automobiles, Auto Business, Spare Parts, Auto-cosmetics Tbilissi | Georgia
autoclassico International Classic and Vintage Automobile and Motercycle Exhibition Porto | Portugal
28/10 - 30/10/2014 Testing Expo
04/10 - 19/10/2014 Mondial de l’Automobile
Automotive Testing Expo North America Novi | USA
International Paris Motor Show Paris | France
30/10 - 02/11/2014 ATRA’s Powertrain expo
08/10 - 10/10/2014 TRANSEXPO
Gathering of transmission professionals Las Vegas | USA
The International Fair of Public Transport. Kielce | Poland
01/11 - 03/11/2014 BIGR/rematecusa
11/10 - 12/10/2014 AUTOSALON/AUTOSERWIS
The No 1 reman show in North America Las Vegas | USA
International Car Fair Katowice | Poland
04/11 - 06/11/2014 AAPEX
13/10 - 17/10/2014 SAAW
Automotive Aftermarket Products Expo Las Vegas | USA
SAAW - South African Automotive Week Midrand/Johannesburg | South Africa
04/11 - 07/11/2014 SEMA Show Automotive specialty products trade event Las Vegas | USA
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