Remanufacturing in the Heavy Vehicle Industry—Case Study of a Finnish Machine Manufacturer

Pasi Rönkkö, Sayed Mohammad Ayati and Jukka Majava
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Pasi Rönkkö: Department of Industrial Engineering and Management, University of Oulu, P.O. Box 4610, 90014 Oulu, Finland
Sayed Mohammad Ayati: Department of Industrial Engineering and Management, University of Oulu, P.O. Box 4610, 90014 Oulu, Finland

Sustainability, 2021, vol. 13, issue 19, 1-15

Abstract: This study analyses remanufacturing operations of a Finnish heavy vehicle manufacturer with global operations. The company has remanufactured and refurbished certain components for a decade in a centralised remanufacturing and recycling centre in Finland, but it has encountered significant challenges, especially in reverse logistics. The company considers regional remanufacturing to decrease these disadvantages. The purpose of this study is to analyse the characteristics, challenges and benefits of regional remanufacturing by reviewing the relevant literature and analysing the empirical data, including a survey for international subsidiaries of the case company to determine regional needs. As a result, we have identified significant benefits, especially related to minimised logistics costs and better availability of the components, but also challenges, such as lack of resources, and insufficient economies of scale.

Keywords: circular economy; heavy vehicle industry; remanufacturing; refurbishing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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