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Remanufacturing is a growing line of business for Valtra

Resources:
Materials, Waste
Sector:
Manufacturing of machinery and equipment
Read more
Premises and operation areas:
Product and design, Production processes, Waste and recycling
Size of company:
Large (more than 250)
Advancement in applying resource efficiency measures:
Advanced

Guaranteed gearbox returns...

  • Finnish tractor manufacturer has built a profitable and growing new line of business from remanufacturing tractor gearboxes
  • A deposit at point of sale guarantees resellers bring the gearbox back to the manufacturer

Valtra develops, manufactures and services agricultural machinery. Since 2012, the Finnish firm has been developing their remanufacturing operations for tractor gearboxes. Customers can order remanufactured parts to replace a tractor’s transmission that has come to the end of its working life.

In the traditional model of replacing the transmission with a new one, a remarkable amount of value is lost, and significant resources are required to manufacture the new transmission.

In Valtra’s remanufacturing business model, the old transmission is brought to its factory and disassembled. Worn-out parts are replaced and components are calibrated. The gearbox is reassembled and then tested. Any available upgrades are added. The customer receives a 'good as new' gearbox with a factory warranty. The remanufacturing and improvement of products closely tracks new product development, ensuring maximum value added for customers.

Remanufacturing gearboxes is a significant source of revenue and a growing line of business for Valtra. To ensure they get the used gearboxes back, the company has created a system where resellers pay a deposit which is repaid when the old gearbox is returned to the factory.

Key benefits

  • For the customer, the remanufactured gearbox costs 30-40 % less than a new one
  • They also receive a new, working gearbox to replace the broken one more quickly than through traditional repair services
  • For Valtra, remanufacturing is very profitable; the revenues from remanufactured gearboxes have been growing 25-35 % yearly since 2012
  • Valtra has also been able to improve its product design based on valuable feedback provided thanks to the remanufacturing process
Source

The Federation of Finnish Technology Industries, 2016, Examples of circular economy in companies,  https://teknologiateollisuus.fi/sites/default/files/file_attachments/case_valtra_final.pdf

Sitra, 2017, The most interesting companies in the circular economy in Finland, https://www.sitra.fi/en/cases/remanufactured-tractor-gearboxes/

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