Remanufacturing Helps in Global Transition Towards a Circular Economy
(3BL Media/Justmeans) –Remanufacturing is an important subset of the circular economy – enabling products, components and valuable resources to be kept at their highest use for agreater period of time. The current value of global e-waste alone represents $52 billion worth of potentially reusable resources, apart from the significant savings possible in terms of energy, emissions, water and waste.
Remanufacturing businesses are able to generate new, medium-to-high skilled jobs. Remanufactured products, themselves, can also deliver new forms of sustainable customer value. For example, by providing affordable alternatives to brand new products, it is possible to reach under-served markets and customers, particularly those on lower incomes.
Collectively, the world is sitting on a mountain of underutilized, valuable resources, trapped within old and discarded products. This fact is highlighted in a new study, The Benefits Case for Remanufacturing, published by Norsk Ombruk, a remanufacturing company in Norway. Norsk Ombruk is laser-focused on extending the useful and productive life of household electrical goods.
The company’s value proposition is all about taking products that have come to the end of their first, useful phase of life – usually after five years – and, through its unique remanufacturing processes, the company is able to produce high-quality remanufactured products, which deliver a further useful five years of peak-performance.
This innovative business model not only enhances product life and value for the end-user customer, it also extends the life and reputation of the original brand. The model delivers an affordable alternative, to the brand new product, while preserving valuable resources, and saving energy and associated carbon dioxide emissions.
Norsk Ombruk currently has a focus on White Goods, a category that includes refrigerators, washing machines, stoves, dishwashers, and dryers. The relative proportions of products received are fairly similar, each year, and are purely down to whatever the company receives from its various channels of supply – most usually products returned to retailers at the end of their first useful life.
Ratio of benefits delivered in proportion with the manufacturing firm’s business operating costs currently stands at 11:1. In simple terms, for every €1 million of operating costs, the company delivers €11 million of benefits to people, the environment, business and the economy.
Norsk Ombruk is growing at a rapid pace, having invested heavily in scalable production processes, excellent quality control systems, and in developing a high-skilled workforce. In 2016 the company remanufactured over 12,300 electrical products – representing 50 percent more throughput than the previous year – delivering annual sales of €1.8 million. Following a successful start-up phase, the company is now expanding its operations into other countries in Europe and Scandinavia.
Source: Norsk Ombruk
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