Caterpillar: Remanufacturing is a win-win path for carbon reduction

In 2021, a total of 127 million pounds of used materials that had reached the end of their service life were recycled. This is a rather striking piece of data from Caterpillar's recently released 2021 Sustainability report.

127 million pounds, or 57,600 tons, is equivalent to the total weight of over 450 million smartphones. These used parts include materials such as engines, gearboxes, hydraulic products, fuel system assemblies and components that have reached the end of their service life. Caterpillar, through advanced remanufacturing processes, enables them to be put back into use with performance and quality comparable to new parts, giving them a new life.

Remanufacturing is an advanced form of the circular economy. It is not merely about repair and refurbishment. Instead, it involves disassembling, cleaning, repairing, inspecting, assembling, painting and packaging old parts in accordance with the original factory parts' specifications and the latest engineering and technical standards, ultimately forming remanufactured products.

Remanufacturing is a valuable service that Caterpillar provides to its customers and is also an important part of the company's strategy regarding sustainability. Brian Edwards, senior vice president of remanufacturing at Caterpillar, said. Remanufacturing has extremely unique economic and environmental effects. Whether it is for customers, the environment, or Caterpillar itself, remanufacturing is a win-win solution.

Caterpillar: Remanufacturing is a win-win path for carbon reduction

In 2021, Caterpillar recycled a total of 127 million pounds of used parts that had reached the end of their service life

Half a century of accumulation

In 1973, Caterpillar opened its first remanufacturing plant in Iowa, USA, specializing in remanufacturing used engine parts for diesel trucks. At the factory gate, there is a striking and witty slogan: "Bring your tired or broken (engine) here, and we'll make it roar." This brand-new service was well-received by Carter agents and customers as soon as it was launched.

After nearly 50 years, Carter Remanufacturing has made a significant leap forward and now has a complete global used parts recycling and remanufactured product sales system, including 21 global parts distribution centers and over 2,300 Carter authorized service points. In 2021, 88% of the used parts of Caterpillar's machinery and equipment that could still be remanufactured after the end of their life cycle were recycled. Currently, Caterpillar can offer over 8,000 types of remanufactured parts products, providing customers with more options during maintenance and major overhauls.

Caterpillar: Remanufacturing is a win-win path for carbon reduction

Currently, Caterpillar can offer over 8,000 types of remanufactured parts products, providing customers with more options during maintenance and major overhauls

Remanufacturing can save a great deal of resources and energy. Compared with manufacturing new products, Carter remanufacturing can save 85% of energy consumption, 85% of raw material consumption and 85% of water consumption *, and reduce greenhouse gas emissions by 61% in the process. Due to the significant savings in energy and resources, remanufactured products can have their prices reduced by up to 60% compared to new parts of the same type, while maintaining the same quality, performance and warranty commitment.

Remanufacturing has covered a wide range of Caterpillar products. Caterpillar's manufacturing expertise, equipment inventory and independent agent system enable it to offer remanufactured products and components through many of its brands, including Caterpillar, Solar Turbine and Mannheim, and provide overhaul services through agents.

Adhering to the advanced concept of "designed for remanufacturing", Caterpillar's engineers incorporate the remanufacturing concept into their designs when choosing raw materials, thickness, bearings and other components. It can be said that the remanufacturing process begins at the very beginning of the design, thus enabling the new product to have multiple life cycles.

The mission under the "dual carbon" goals

As a global pioneer in remanufacturing, Caterpillar was one of the earliest enterprises to introduce the advanced circular economy concept of remanufacturing to China. In December 2005, Caterpillar established a remanufacturing plant in the Lingang Industrial Park, Shanghai. Previously, the state clearly defined the policy of "supporting the remanufacturing of used mechanical and electrical products".

Caterpillar's Lingang Remanufacturing plant has developed rapidly and was listed by the Ministry of Industry and Information Technology as one of the first batch of "Pilot enterprises for remanufacturing in the Construction Machinery Industry" in 2009. In 2012, the second factory building was officially put into operation. In 2014, the remanufacturing project of high-pressure common rail fuel injectors was successfully introduced. In 2016, it was awarded the highest environmental honor in China - the Baosteel Cup Enterprise Environmental Award, and became the first foreign-funded enterprise to receive this honor.

In China, Caterpillar's remanufactured products not only help many customers save precious time and operational costs, but also assist them in achieving sustainable development.

The East China Sea Rescue Bureau of the Ministry of Transport, which undertakes rescue and special emergency rescue tasks in the eastern coastal areas and related waters of China, has its rescue vessels equipped with Cat® 3508B Marine backup engines. Previously, the major overhaul of two engines on a ship took about 20 days. After using remanufactured components to repair the cylinder head, oil cooler, oil pump and water pump, it only takes 12 days to complete the major overhaul of an engine on a ship. Given the particularity of the rescue vessel, the value of the saved maintenance days in saving lives is self-evident.

In the energy sector, remanufacturing also plays a significant role. Shanxi Jinju Coal, Electricity and Chemical Company is equipped with 97 Cat® G3520C gas generator sets. Long-term operation causes severe wear and tear on the generator set. In 2021, Jinju Coal, Electricity and Chemical Company carried out a major overhaul of the entire machine by remanufacturing short cylinder blocks, which directly shortened the overhaul period from nearly a month to just one week, significantly increasing the power generation time and power sales revenue.

Caterpillar is still exploring the use of more advanced technologies, such as mechanical vision systems, to determine more quickly and accurately whether used parts can be remanufactured. Use robots for repair to improve repair efficiency.

Regarding the essence of remanufacturing, Brian Edwards explained: "The key word of remanufacturing is' saving '- significantly reducing equipment maintenance costs and time for customers, saving 85% of raw materials for the environment, thereby reducing energy and water consumption and carbon emissions." Remanufacturing is a win-win path for carbon reduction."

In June 2022, Caterpillar updated its global corporate strategy, designating sustainability as its fourth major focus area. Caterpillar not only has long committed to and practiced sustainable development itself, but also focuses on continuous investment in new products, new technologies and new services to help customers achieve their climate-related goals.

With the global focus on the goals of carbon peaking and carbon neutrality, the circular economy has become a key area of national concern, and the remanufacturing industry is presented with significant opportunities. Caterpillar will also follow the relevant policies of China's remanufacturing industry and help related industries achieve sustainable development together.

The environmental impact of the remanufacturing process of Cat Reman engines and components compared with the manufacturing of new engines and components of the same type. This does not include the impact on other links of our value chain. Based on the research conducted by Caterpillar on the 3412 cylinder head in 2006.