2005 Issue 3
Reman E-News

A Bi-Weekly Review For The Remanufacturing Community
A joint effort by The Remanufacturing Institute (TRI)
and the OEM Product-Services Institute (OPI)

Providing news for the $100B global remanufacturing community:
market trends, innovative offerings, government initiatives, acquisitions, expansions,
professional societies, trade groups, legal rulings, financial results, the environment,
productivity improvements, publications and events.

Future Events

October 29 - 31, 2005 / INTERNATIONAL BIG R SHOW / Riviera Hotel and Casino / Las Vegas
November 1-4, 2005 / AAPEX & SEMA SHOWS / Las Vegas


Government Sponsorship Of Remanufacturing

The Ben Franklin Technology Development Authority (BFTDA) approved $250,000 in operational funding for the Beaver County Keystone Innovation Zone (KIZ). Coordinated by the Corporation for Owner Operator Projects (CO-OP), the Beaver County KIZ will leverage the regional strengths of the Southwestern Pennsylvania medical device and healthcare industries to support the refurbishing and remanufacturing of pre-owned medical equipment. Partnering with Geneva College, Robert Morris College, Penn State New Kensington, Duquesne University's Institute for Economic Transformation and Beaver County Community College, the KIZ will focus its resources on the development and expansion of the emerging pre-owned medical equipment industry.

The BFTDA is a state-funded network dedicated to fostering technology innovation, strengthening the Commonwealth's economy and creating and retaining high-salary jobs that require advanced skill levels. The BFTDA provides funding and support for partners throughout Pennsylvania that identify the most promising technological ventures and provides them with technical assistance and capital.

For more information regarding the KIZ program and other economic-stimulus programs visit http://www.newPA.com or call 1-866-GO-NEWPA (1-866-466-3972)


…More Government Sponsorship Of Remanufacturing:
EPA’s Environmental Preference Program (EPP)

EPA has five Guiding Principles established to help executive agencies identify and purchase environmentally friendly products and services.
Environment + Price + Performance = EPP

#1 Pollution Prevention - Emphasize pollution prevention as part of the purchasing process.

#2 Life Cycle Perspective/Multiple Attributes - Examine multiple environmental attributes throughout the product and service's life cycle.

#3-Comparison of Environmental Impacts - Compare environmental impacts when selecting products and services.

#4-Environmental Performance Information - Collect accurate and meaningful environmental information about environmental performance of products and services.

#5-Positive Attributes - The attributes listed below are viewed as positive because they either serve as proxies for minimizing natural resource use or avoiding waste and the associated environmental impacts identified in A, B, and C. These attributes also are linked to authorities and requirements in statutes or executive orders that encourage the Federal government to promote their use. "Recyclability" and "recycled content" are attributes encouraged under RCRA. There are executive orders that encourage Federal agencies acquire bio-based products, and to promote energy efficiency and water conservation. "Durability", "reusability", "take-back", and "reconditioned or remanufactured" are positive attributes that encourage source reduction. "Product disassembly potential" increases the potential for source reduction and recycling of product components. Agencies should note that the presence of these attributes alone does not automatically make a product or service environmentally preferable. When making purchasing decisions, executive agencies should consider a range of environmental impacts associated with products from a life cycle perspective when making purchasing decisions.

  Recycled content
  Recyclability
  Product disassembly potential
  Durability
  Reusability
  Reconditioned or remanufactured
  Take-back
  Bio-based
  Energy efficiency
  Water efficiency


OEMs Versus Third Party Remanufacturing; The Battle Continues

The United States Supreme Court has recently upheld Static Control's position against the Digital Millennium Copyright Act (DMCA) and copyright issues raised by Lexmark in connection with Static Control's sale of Lexmark compatible chips for remanufactured toner cartridges.

The latest ruling marks the fifth straight victory for North Carolina-based Static Control Components Inc. and the end of Lexmark's attempts to use the DMCA to create a monopoly in aftermarket supplies. Static Control now offers the only Lexmark compatible chips that have been cleared by the courts under the DMCA or copyright.

"I could not be any happier that justice is being served," said Ed Swartz, CEO of Static Control. "For nearly 900 days we have fought tooth and nail with this multibillion dollar company. We vowed at the outset that we would not back down or waiver, and we will see this battle to its very end."

On Dec. 30, 2002, Lexmark filed a lawsuit against SCC. In the suit Lexmark claimed that SCC's Smartek 520/620 chips violated the Digital Millennium Copyright Act of 1998.

Static Control Components, which employs over 1,300 people in Sanford, N.C. accounts for over $300 million in annual sales. The primary market for Static Control Components is the laser toner cartridge remanufacturing market. Static Control supplies over 3,000 replacements parts to over 10,000 remanufacturers all over the world.


Allied Automotive Group: Remanufacturing Of Equipment Accounting in 10K

During 2004, the Company spent $22.5 million on capital expenditures, of which $11.7 million was spent on the purchase of 256 Rig engines and on the remanufacture of 114 Rigs, along with 14 additional trailers. The Company also spent $7.0 million on the acquisition of new Rigs in 2004. For 2005, the Company expects approximately $25.0 million in capital expenditures to remanufacture approximately 165 Rigs, replace approximately 470 engines and purchase approximately 100 Rigs currently under lease.


Remanufactured Mining Equipment Is Big Business: Royal Equipment Sold Seventeen 240-Ton Haul Trucks

The fleet will be used to support coal mining at the Bengalon project in eastern Kalimantan Indonesia, a 10-year US$1.2 billion contract originally awarded to HWE in May 2004.

"With the increased global demand for minerals, the major mining operations are having difficulty acquiring heavy equipment in a reasonable time-frame," stated David A. Kintigh, Chief Operating Officer for Royal Equipment. "Last year when the order was placed with us for remanufactured equipment, new equipment orders had lead times as long as two years, while our fleet of remanufactured trucks will be delivered in a fraction of the time and cost."

Royal Equipment specializes in extending the useful life of heavy equipment used in the surface mining industry. The fleet is being remanufactured in Western Australia with final field assembly and field -testing being performed at the new government-owned Australian Marine Complex -- Common User Facility


Volvo Trucks Publishes New Online Disassembly Manual For Environmental And Remanufacturing Benefits

"The truck sector does not have producer responsibility in the same way as the car industry," says Lars Mårtensson, environmental director of Volvo Trucks. "However, our aim is to provide good information to limit the lifetime environmental impact of our products and live up to our environmental responsibilities in this area."

The new disassembly manual is aimed at dealerships and other workshops involved in scrapping trucks as waste or for disassembling for parts reused in remanufacturing . It provides detailed instructions on how the truck should best be dismantled and how to handle hazardous fluids, together with detailed specifications of the component materials and how they can be recycled, reused or scrapped in the optimum manner from an environmental aspect.

The purpose of the new dismantling manual, which is published in three languages - English, French and Swedish - is to maximize materials recycling, as well as encourage the reuse and remanufacture of components, which is undertaken at Volvo’s own remanufacturing plant in Flen in Sweden and by selected contractors. Currently, 90% by weight of a truck can be recycled, because of its high metal content.

The new dismantling manual can be studied on the Volvo Trucks environmental home page at www.volvotrucks.com/environment


Industry Transitioning From Mechanical To Digital Kills A Remanufacturing Business

Imagistics International Inc. (NYSE:IGI) announced charges for the discontinuance of their facsimile remanufacturing operations, the National Remanufacturing Center in Milford, Conn. The industry shift to digital technology has resulted in a marked decrease in the customer demand for remanufactured product. The company's analysis of the marketplace continues to confirm that customer demand for unconnected and analog remanufactured copiers is in a steady state of decline, and this attrition in demand is counter to the strategy for continued profitable growth. This action will result in a restructuring charge of approximately $1.8 million, or $0.06 per share recorded in the first quarter 2005, including employee termination benefits and other exit activity expenses. The company expects to continue to market used equipment.


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Final Note
We encourage you to forward this newsletter to friends in the remanufacturing community. It is our intent to carry news on all industry sectors. If you have news to share or comments, please contact the Reman E-News editor:
 

Ron Giuntini

rgiuntini@oemservices.org
570.523.0992

Ron Giuntini, Executive Director
PO Box 48
Lewisburg, PA 17837
rgiuntini@reman.org
570.523.0992

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