We are accelerating circularity at all levels of operations, from portfolio management to business models. Building our processes around circular economy principles helps us improve our resource and energy efficiency while creating value for the customer by reducing their environmental footprint with advanced low-carbon and energy-efficient products and services. Circularity plays an essential role in tackling climate change. Our portfolio includes low-carbon power options, optimized maintenance, upgrades and modernizations to help our customers reach their sustainability targets.
In 2020 we
- Held climate risks and opportunities workshops about the opportunities we have mitigating climate change and to accelerate circular economy, agreed on next steps.
- Planning workshops for circular economy innovation for 2021
- Continued work on a Circular Economy road map
What is circularity?
Circular economy aims to get more value from existing products while decoupling value creation from resource consumption, optimizing resource use within industries. Working together with our value chain, we can enable more efficient use of raw materials, increase energy efficiency, and create value for all parties. Building our processes around circular economy principles helps us improve our resource and energy efficiency while creating value for the customer by reducing their carbon footprint. We have one of the largest service networks using modern technical solutions to unlock unique circular economy opportunities that benefit customers. Having the whole value chain in our own hands (design, manufacturing, data about equipment maintenance) gives us the opportunity to impact the whole chain.
Our product design is based on smart design principles focusing on repairability, durability as well as material and energy efficiency. Customers see the clear benefits of investing in durable equipment that can be repaired and modernized and the value that comes from increased production uptime. Additionally, significant savings can be obtained through renting, repairing, modernizing and purchasing used, fully serviced equipment. Modernizations and retrofits also enhance the energy efficiency and performance of equipment by saving a great deal of raw materials, cutting emissions from logistics and reducing the energy used in manufacturing processes. Modernization also increases safety, productivity, reliability and usability while decreasing the need for repairs and unscheduled maintenance.
Our service business advances circular economy by focusing on extending the lifecycle of equipment via predictive maintenance, remanufacturing, modernizations and retrofits. By providing predictive maintenance services we help our customers extend and maximize the lifecycle value of their products. We see a great deal of potential in the interplay between digitalization and the circular economy. We can reduce and optimize the need to move goods and people when we use real-time data to predict maintenance needs. Connected devices and online platforms provide data on the state of components in real time, showing when to maintain, replace or repair components and thus leading to a smarter use of resources and longer product lifecycles. With predictive maintenance, unplanned service hours can be avoided, and equipment performance can be maintained at the highest possible level, extending a product’s lifecycle.
Our efforts to deliver maximum circular value through our solutions include:
Smart design. We select repairable and recyclable materials for our products and design our equipment to enable their reuse and recycling. We utilize the Design for Environment concept (DfE) in product development, which, among other aspects, considers the modularity, durability, component repairability and energy and material efficiency to reduce the environmental impact of our products’ lifecycles. In addition, we encourage the re-utilization of pre-owned equipment (Lift trucks, MHC).
Sharing and re-using resources. Product-as-a-service: Leasing-based warehousing with AGILON, which includes comprehensive service and preventive maintenance, allowing customers flexibility at a fixed monthly cost. Sharing platform: Remote maintenance possibilities for products connected via TRUCONNECT. Customer platform YourKONECRANES gives customers and service technicians the ability to easily view TRUCONNECT data (knowing when to maintain, replace or repair components). With the help of digital tools, we can extend the life cycle of equipment and optimize the need for maintenance and spare parts.
Services for life cycle extension. We further prolong the service life of equipment through repair and maintenance, retrofitting, remanufacturing and modernization to extend their already long lifespan. We also repair and recycle components and sell used, fully serviced equipment. Modernizations are extensive life cycle extension projects, where remanufacturing is used to repair or replace of worn out or obsolete components and modules. Remanufacturing is a form of a product recovery process. Our vast service and spare part offering and systematic approach to maintenance is supported by digital tools to help predict failures, optimize the need for maintenance and spare parts and extend the life cycle of equipment. (TRUCONNECT)
Product-as-a-service: CASE Agilon
Agilon® is an automated storage and retrieval system and service, that gives a customer exact information on their materials in real time. Agilon’s advanced modularity optimizes in-house logistics and increases transaction capacity and storage area. The solution consists of a closed unit shelving system, robots travelling within the shelving and an online portal where the customer can remotely track stock information. The system can be adjusted to the customer’s volume, for example, adding modules if they are experiencing a ramp up in volumes.
The system is maintained by Konecranes and can be fully utilized for another customer. A dedicated Konecranes team performs continuous remote monitoring of the system. In the case of system failure, the service team replaces the defect module with a replacement module. Further diagnostics of the defect module is conducted at a Konecranes service center, ensuring minimum downtime on the site. The failed components are analyzed and repaired for re-use.
The system itself is very energy -efficient, easy to set up and does not require modifications to the customer’s premises. This product-as-a-service is an easy solution for the customers, because major up-front investment costs of the equipment can be avoided by leasing the system to the customer with a monthly fee. The lifecycle risk of owning equipment is eliminated, as the leasing agreement can be terminated if there are any changes in demand and the service of the equipment is handled by Konecranes. It is also possible to purchase the Agilon system with the same maintenance services with a smaller monthly fee.
Read more about our circular economy solutions: