Volvo CE moving away from ‘linear’ business model

Volvo CE says that its machines are built to operate with the smallest possible impact on the environment

Volvo Construction Equipment (Volvo CE) says that it is moving away from a linear business model in which the company makes new products and discards them at the end of life, towards a circular one which embraces remanufacturing, refurbishing, repurposing and recycling.

The OEM says that its machines are built to operate with the smallest possible impact on the environment. The life cycle of every piece of construction equipment is thought through, right from the development stage.

At the company’s Reman division, old components are given a new life.  After complete dismantling, cleaning, checking and repairing, everything from engines and their surrounding parts, transmissions, hydraulic parts, driveline parts and some electronics are given a second life.

David Forsman, product manager, Volvo Reman says, “We take used, worn parts and in many cases make them even better than they were when first bought, by including any available updates and the latest specifications.

“We reuse up to 85% of the original material and what cannot be reused is recycled. By taking old parts and returning them to new condition, we’re keeping them in circulation and avoiding the need for new parts to be manufactured. It takes 80% less energy to build a reman component compared to manufacturing from new, which means CO2 emissions are significantly reduced too.”

The Sweden-based company also has a Certified Rebuild programme that takes old machines and gives them an update ready for a second or even third life. In Volvo certified workshops, worn parts are refurbished or replaced with Volvo approved used parts, updates such as air conditioning or new seating can be added before the machine is returned to the customer ready to be put to work again.

Certified workshops are already in place across Europe, North America, Indonesia, and China.