Remanufacturing in the Circular Economy

Chapter 2The Role of Remanufacturing in a Circular Economy

Erik Sundin

Division of Manufacturing Engineering, Department of Management and Engineering, Linköping University, Sweden

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Abstract

The circular economy is a concept that is studied by many manufacturers today, especially in Europe. Remanufacturing is increasingly recognized as an essential part of the circular economy. This chapter describes the characteristics of both the circular economy and remanufacturing, as well as the relationship between the two, and their mutually reciprocal business and ecological benefits. Evidence from research and industry supports the notion that a strong connection exists between the adoption of remanufacturing and the success of the circular economy.

Keywords: Remanufacturing, circular economy, closed-loop system, lifecycle, business models, product service system, sustainable, environment

2.1 Introduction

From resource constraints to evolving customer demands, manufacturing companies face many challenges in the present competitive market. Remanufacturing is one of many ways to stay competitive, bringing business benefits such as reduced costs and increased market shares while simultaneously improving environmental performance. Concurrent to the emergence of remanufacturing in today’s industrial systems, the concept of a circular economy has gained popularity in recent years, especially amongst authorities within Europe, as a means to achieve the critical decoupling ...