Taking parts from end-of-life machines and bringing them back to their original condition through remanufacturing can save up to 80% of the energy required to produce them new, according to CNHi.
This underpins the company’s growing enthusiasm for the recycling of older components which are then sold through its parts sales network with a two-year guarantee, which is twice that of new items.
Remanufactured parts for Europe
So far, the provision of remanufactured parts has been mainly confined to the US market but CNHi intends to increase its use in its European sphere of operations.
The scheme originally started in 2009 with the establishment of a joint venture with Springfield Remanufacturing Corporation of Missouri.
This company had originally been part of International Harvester, but an employee buyout in 1983, for around $9 million, saw the company start operating as an independent entity.
Since the joint venture with CNHi started, the turnover in remanufactured parts has risen to $160 million across CNH’s complete product range, which includes construction equipment.
A thorough job
The company is keen to point out that the difference between remanufacturing and repairing is considerable.
In the remanufacturing process, the core of the tractor or construction vehicle part is returned to Reman’s factory where it is completely disassembled, cleaned and all parts are inspected and fixed, or replaced with new components if needed.
The unit is then fully reassembled to the same specifications as CNH Industrial’s brand new parts.
Remanufactured parts cost, on average, 25% less than new and there is no hours limit on the two-year warranty.
They might also be available quicker, with delivery times being up to 65% shorter than waiting for a new part.
Rocky road ahead
While CNHi is hoping to expand the role of remanufactured parts in keeping older machines on the go, there are barriers slowing the process down.
These range from legislation in some countries which bans their use, to the logistics of getting the used items back to the factory for disassembly.
The science of testing a component and predicting its life also needs continual development.
The concept of remanufacturing will also have an influence on the way that future components are designed and made, with CNHi’s purchasing department asking component suppliers to create products that more easily lend themselves to reuse.
