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Caterpillar Commits to Remanufacturing Old Engines

Construction equipment manufacturer Caterpillar says remanufacturing is key to becoming more environmentally friendly and boosting revenue, according to The Wall Street Journal (subscription).

What’s happening: Caterpillar has developed a system of inspecting, taking apart and rebuilding old engines. In 2021, Caterpillar processed about 127 million pounds of used equipment.

Environmental goals: Remanufacturing used engines is part of Caterpillar’s broader goal to make its operations even more environmentally friendly.

  • According to the company, remanufacturing an engine produces 61% less greenhouse gas than building a new one and requires 80% less water, energy, landfill space and raw materials.

Added benefits: Remanufacturing motors not only helps Caterpillar meet the rising demand among construction companies for more environmentally friendly products; it also helps reduce costs and ease supply chain difficulties when new parts are delayed or unavailable.

Other players: Caterpillar isn’t the only machinery manufacturer that is pursuing remanufacturing. Farm equipment makers AGCO and Deere & Co. have each committed to upping their remanufacturing operations as well.

What they’re saying: “It’s taking a product which is towards the end of its life, refurbishing it and basically putting it back in service and extending the life,” said Caterpillar financial chief Andrew Bonfield. “From a customer’s perspective, effectively they get a refurbished machine, almost as good as new, at a lower cost.”

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