How Scania is Making Automotive Manufacturing Circular
In efforts to become more sustainable, many businesses are aiming to transition to a circular economy model that can reduce carbon emissions, build more resilient supply chains and even drive economic growth.
Scania is taking steps towards more circular vehicle manufacturing through integrating reused components on its main assembly line in Sweden.
The company says this is a world first for heavy vehicle original equipment manufacturers (OEMs).
The gearbox âremanufacturingâ project consumed around 50% less material and produced roughly 45% less carbon emissions compared with making a brand-new one.
The final remanufactured gearbox was subject to the same quality and function tests as gearboxes made from entirely new parts and met all requirements the company tests for in new components.
âWhat an achievement by the project and everyone involved,â says Fredrik NilzĂ©n, Head of Sustainability at Scania.
âThis remanufactured gearbox is a compelling example of how the manufacturing of heavy vehicles can become more sustainable, circular and efficient, while still retaining the highest quality standards.â
About the iReGear project
iReGear is a joint research project with Scania, KTH Royal Institute of Technology and Scandinavian Transmission Service AB with funding provided for the project by Vinnova, the Swedish innovation agency.
Ola StĂ„lebo, CEO at Scandinavian Transmission Service AB, says: âSTS has been remanufacturing gearboxes for more than 50 years.
âItâs amazing to be able to challenge the old perception that remanufactured parts only can be used for aftermarket purposes.
âToday, we can proudly reflect on a period of successful collaboration, where we have achieved breakthroughs in sustainable technology.
âThis project truly shows that it might not need to stop at just one idea, but it could become a reality in the near future.â
The iReGear project partners hope that the project will lead the way towards circularity in the automotive industry.
Farazee Asif, Assistant Professor at KTH, says: âThis research provides the first evidence to support the argument that it is feasible to envision future manufacturing organisations seamlessly integrating manufacturing and remanufacturing operations to develop Circular Manufacturing Systems that consume fewer resources, produce fewer emissions, and cost less without compromising on quality and performance.â
Remanufacturing in the automotive sector
Remanufacturing in the European automotive sector remains mainly in the aftermarket.
This accounts for only 1.1% of new manufacturing.
Globally, the automotive aftermarket size is expected to grow with a compound annual growth rate of 3.5% from 2024 to 2032.
Whilst this growth expects the market to reach US$568bn by 2032, to make significant progress in reducing automotive manufacturing emissions remanufacturing processes need to be incorporated into the practices of OEMs.
Scaniaâs sustainability efforts
Scania says that it doesnât have a separate strategy for sustainability. Instead, it is integrated into all of its processes.
The company set science-based targets in 2020 to decarbonise its business, aiming to reduce 50% of emissions from land transport between 2016 and 2025.
Christian Levin, President and CEO at Scania and TRATON GROUP, says in 2023 the company “continued to deliver customer value and made good progress getting our order to delivery flows back on track.”
In 2023, Scania committed to purchasing 100% green steel, batteries, aluminium and cast iron by 2030.
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