Report on the remanufacturing of refrigerated display cabinets

©Centre for Remanufacturing & Reuse 2009 

<strong>Report</strong> on the 

remanufacturing of 

refrigerated display 

cabinets 

Opportunities and 

recommendations 

March 2009 

Page 1 of 38


About the CRR 

The CRR has been formed to promote, where appropriate, the activities of remanufacturing and reuse. The 

Centre is embedded within Oakdene Hollins Ltd, a clean technology and resource management consultancy 

based in Aylesbury, Bucks. 

Our work is largely funded by Defra but we work with a range of regional agencies to reach our targets. We will 

work directly with companies, although individual support does require paid-for contribution. Work that assists 

sectors or helps not-for-profit and third sector organisations is free, as is our advice to the ordinary consumer. 

We believe that remanufacturing and reuse (r&r) are underused means of conserving resources; significant 

extra savings in materials and energy use are possible whilst boosting skills, employment and economic activity. 

To this end, the Centre is developing an evidence base which will enable Government and industry to take 

actions to boost r&r. 

Core to our purpose is the implementation of actions that will boost - in particular - remanufacturing. These 

policies and strategies are designed to help businesses (both consumers of remanufactured goods and 

remanufacturers), governmental policy makers, OEMs and trade bodies to deliver more remanufactured goods 

and thus reduce our impact on the environment, and at a profit. We generate the supporting information that the 

remanufacturing industry needs to make its case and raise its profile. 

For further topic information and advice please visit our website: www.remanufacturing.org.uk 

For additional information on this report please contact: 

Ben Walsh, Technical Consultant, CRR, c/o Oakdene Hollins Ltd, 3rd Floor, Pembroke Court, Cambridge 

Street, Aylesbury, UK, HP20 1RS 

Tel: +44 (0)1296 337165 

Fax +44 (0)1296 330351 

Email: ben.walsh@remanufacturing.org.uk 

This report has been prepared by: Ben Walsh 

Checked as a final copy by: 

Reviewed by: 

David Parker 

Jo Pearson 

Date: 1 st June 2009 

Contact: 

File reference number: 

Ben.walsh@remanfuacturing.org.uk 

BOND01 178 Public.Docx 



Contents 

ACKNOWLEDGEMENTS 4 

TERMINOLOGY 5 

EXECUTIVE SUMMARY 6 

1 INTRODUCTION 8 

1.1 What is a RDC 8 

1.2 What is remanufacturing 10 

1.3 Remanufacturing RDCs 11 

2 BENEFITS OF REMANUFACTURING 14 

2.1 Introduction and general benefits 14 

2.2 RDC energy usage 15 

2.3 RDC energy improvements 15 

2.4 RDC carbon footprint 16 

3 MARKET REVIEW 21 

3.1 Current activity and future activity 21 

3.2 Opportunity 24 

3.3 Customer Survey 25 

3.4 Summary 27 

4 BARRIERS AND RECOMMENDATIONS 28 

4.1 Barriers 28 

4.2 Recommendations 31 

5 CONCLUSIONS AND WAY FORWARD 35 

APPENDIX 38 



Acknowledgements 

We would like to thank retailers and remanufacturers for their contributions. Their 

anonymity has been preserved. 



Terminology 

CO 2 

CO 2 e 

Carbon footprint 

CRR 

Carbon dioxide gas, a major contributor to climate change 

Effects of other gases expressed as the equivalent mass of 

CO 2 carrying the same global warming potential 

The carbon dioxide (and equivalents, see CO 2 e) released 

during the stated life phase of the article in question 

Centre for Remanufacturing & Reuse 

CSR Corporate Social Responsibility: is the continuing 

commitment by business to behave ethically and contribute 

to economic development while improving the quality of life 

of the workforce and their families as well as of the local 

community and society at large 

Defra 

ECA 

End of Life 

Greenhouse Gas 

LCA 

RDC 

Reuse 

TBG 

Whole Life 

Department for the Environment, Food and Rural Affairs 

Enhanced Capital Allowance: a scheme which provides 

favourable tax incentives to businesses that buy energy 

efficient, energy using products 

(EoL) The point at which a product fails or otherwise does 

not meet the user‟s requirements, thus initiating disposal 

including landfill, scrapping, sale, donation or return to 

supplier. 

Gas whose action within the atmosphere is to increase heat 

retention, generally believed to cause global warming 

Life Cycle Analysis: A proceduralised method for evaluating 

the diverse environmental impacts of the manufacture, use 

and disposal of products or materials. 

Refrigerated Display Cabinet 

Term to embrace a range of product reuse options including 

remanufacturing, refurbishment, repair and remarketing. 

The Bond Group 

An approach that considers the relevant factors and impacts 

pertaining to raw materials extraction, manufacture, 

transport, retail, use and disposal of an item (see also LCA). 



Executive Summary 

This report was commissioned to explore the case for remanufacturing 

refrigerated display cabinets (RDCs). In particular, the report examines the 

financial and environmental benefits, the market potential for RDC remanufacture 

in the UK, and an assessment of factors that are hindering, as well as those that 

could promote its uptake. 

Remanufacturing is the process by which an end of life product is returned to an 

as-new condition with an equivalent warranty. RDCs are ideally suited to this 

process as they can be upgraded to meet current energy efficiency specifications 

(It should be recognised that the majority of the carbon footprint from an RDC is 

derived from its use phase). When an RDC is remanufactured such that its 

energy efficiency matches that of the latest designs, the remanufactured RDC 

saves 2,100 kg of carbon dioxide emissions (CO 2 e) compared to the manufacture 

of a new RDC. This is equivalent to the emissions generated from an average 

car that has been driven for 8,700 miles. 

The current, potential and future activity within the remanufacturing sector was 

also investigated. The current market size for remanufactured remote RDC 

stands at nearly 4,000 per year and is expected to remain stable to the year 

2015. The net effect of current remanufacturing activity is to prevent the 

production of 8,200 tonnes of CO 2 e annually. If remanufacturing became 

prevalent throughout the entire retail sector (for both integral and remote units), 

the industry could prevent the generation of approximately 144,000 tonnes of 

CO 2 e annually, which is equivalent to the average annual emissions of nearly 

50,000 cars. 

The main reason retailers use remanufactured RDCs is not for environmental 

advantages, but to reduce costs. Other benefits to the retailer include the ability 

to perform cost-effective energy upgrades and to enable specified customisations 

to enhance the retail brand. 

Several factors are preventing growth of remanufacturing in the RDC market: 

The use of low-cost new RDC imports has eroded but not obviated the 

cost advantage of remanufactured goods. 

A poor reputation, largely earned through certain disreputable 

remanufacturing dealers, makes selling more difficult, with 

remanufacturers often relying on their reputation with particular individuals 

within the buying departments of retailers to make sales. 

A whole life cycle view which can be an incentive to value the longevity of 

the products is largely absent amongst RDC buyers. However, 

purchasing structures within retailers frequently favour a „cheapest is best‟ 

choice. This is despite the fact that the cheapest new RDCs can fail 

prematurely and are of such poor build quality that they are unsuitable for 

subsequent remanufacture. 



The current taxation regime encourages users to buy the most efficient 

RDC, but, this only applies to new purchases. Equally efficient 

remanufactured units are at present ineligible for these tax allowances. 

There are three general recommendations to increase the level of 

remanufacturing: 

Engage and educate retailers on the benefits of remanufacturing. 

Expand tax allowances to include remanufactured RDCs. 

Evolve remanufacturers into service-led businesses with expanded 

ranges of options for purchasers including leasing both new and 

remanufactured RDCs. 

And specific actions that might be taken by the RDC manufacturing and 

remanufacturing industry itself are: 

Adopt industry wide standards on the quality of new RDCs, for example 

specifying the use of stainless steel bases to enable subsequent 

remanufacturing. 

Develop an industry recognised code of practice for remanufacturing to 

ensure quality and comparability, thus reducing the risk of purchase for 

the retailer. 

Promote the environmental benefits of remanufacturing to retailers and 

government, taking a more structured, quantified and targeted approach. 

Advertise the ability of the environmental benefits of RDC remanufacturing 

to form a valid and significant part of a retailer‟s Corporate Social 

Responsibility report, not least by publishing quantities of RDCs bought, 

both new and remanufactured. 

Agree a public, discriminating, auditable set of test standards for RDC 

(both new and remanufactured) energy efficiency rating that fairly reflect 

as-used performance. 

In summary the industry should seek to bring about a mindset amongst retailers 

where remanufacturing is the standard procedure. Only where an RDC cannot 

be remanufactured should a new one be considered. If that practice was 

adopted then we estimate that an additional 58,000 RDCs would be 

remanufactured each year in the UK. This would save 123,000t CO 2 e and 

generate an estimated 3,050 new jobs in remanufacturing in the UK. 



1 Introduction 

This report has been compiled with the support of The Bond Group (TBG) as a 

study of the potential market for remanufactured Refrigerated Display Cabinets 

(RDCs) in the UK. 

TBG is a keen advocate of remanufacturing and wishes to take a lead amongst 

its peers by exposing the case for remanufacturing, financial and environmental; 

a view of its potential in the UK; and an assessment of factors that are hindering, 

as well as those that could promote its uptake. 

Because the majority of this report and its conclusions and recommendations will 

be of general benefit to the sector, all aspects of the work have been financed 

and conducted with Defra support, acting through the Centre for 

Remanufacturing and Reuse (CRR). 

The wider scope of work aims to: 

Deliver a balanced assessment of the current, potential and future 

capacity in the UK to remanufacture RDCs. 

Understand the carbon benefit of remanufacturing RDCs. 

Identify the barriers to increasing remanufacturing of RDCs. 

Propose recommendations to encourage the remanufacture of RDCs. 

The audience for this report includes central government officials, RDC 

remanufacturers, original equipment manufacturers (OEMs) and retailers or other 

users. 1 

1.1 What is an RDC 

RDCs are devices that enable the sale and storage of chilled and frozen food and 

beverage products in a retail environment. They are common to all supermarkets 

and convenience stores selling chilled food. They serve two purposes: to ensure 

that the produce sold is fresh and to enable the customer to view produce prior to 

selection and purchasing, Figure 1.1. 

1 For clarity, this document will use the term retailer to encompass all users of bother integral and remote RDCs 

including supermarkets, smaller convenience stores, food outlet stores and RDC leasing ventures. 



Figure 1.1: A refrigerated display cabinet (RDC) 

The design, shape and size of RDCs can vary greatly depending on their specific 

use, but are a largely cosmetic feature of the overall functionality of a unit. RDCs 

operate in an identical manner to domestic fridges: A compressed refrigerant gas, 

cooled to below ambient temperature by rapid expansion, chills the air in the RDC 

via a cooling coil. The gas is then compressed, away from the cool zone, and the 

resultant waste heat is radiated (remotely in the case of a domestic fridge). 

There are two main types of RDC: integral and remote, which are differentiated 

by their method of gas compression and waste heat radiation. Integrated models 

contain compressors and heat radiators within the unit; whereas remote units are 

not supplied with a compressor or heat radiator. The coolant for remote units is 

provided from a compressor, generally situated onsite behind the supermarket, 

which provides coolant to several remote RDCs at once. 

Remote RDCs reduce the amount of waste heat expelled into the store and are 

overall more energy efficient with lower compression costs. They are generally 

situated in larger superstores where the outlay of the high powered compressor 

and the requirement for plumbing lines can be justified. Integrated units are 

cheaper to install and are deployed anywhere power can be accessed. Hence 

integrated units are more popular with smaller supermarkets, convenience stores 

and stores where chilled food sales are limited. 



1.2 What is remanufacturing 

Remanufacturing is defined as returning a used product, via a manufacturingtype 

process, to at least its original performance with a warranty that is equivalent 

or better than that of the newly manufactured product. A remanufactured product 

should be practically indistinguishable from a new product from the purchasers‟ 

point of view. The process of remanufacturing involves disassembling a product, 

inspecting and replacing worn parts and consumables, applying a surface finish, 

reassembling the product and thoroughly testing it to ensure that the product 

complies with original performance specifications. Remanufacturing is an 

important, but under-exploited, method of reducing our environmental burden, 

and is estimated to be worth at least £5bn to the UK economy. 2 

It is important to state that there is a common misconception that remanufacturing 

and recycling are synonymous. Recycling is a process for reusing materials: 

During recycling the function or physical form of the recycled product and its 

components is lost through physical or chemical destruction. Remanufacturing is 

a process for reusing products, where the form and function of a device or its 

sub-components are retained to the fullest extent 3 . A simple example is a glass 

bottle: If it is washed, has a new label affixed to it, refilled and sealed the product 

form and function have been retained, and could be considered as having been 

remanufactured. If the bottle is crushed melted and reformed into a glass bottle 

only the material has been preserved and should be considered as recycling. 

Remanufacturing a product removes the need to use virgin materials and 

consume energy in its manufacture. Broadly speaking, the remanufacture of a 

product produces fewer carbon dioxide emissions than manufacturing from new. 

Also, because the embodied energy in the construction of the product is retained, 

remanufacturing involves a lower carbon footprint than scrapping and recycling 

materials and – all other factors being equal – is a preferential option to recycling. 

The exception to this occurs most often where the product consumes energy in 

its operation and where energy efficiency improvements in new product design 

have reduced the overall energy consumption of a device whilst in use. Under 

such circumstances, savings made through delivering a remanufactured product 

may be lost through the inefficiencies of persisting with the use of an older 

design. This issue can be eliminated if a remanufactured unit can be upgraded to 

attain the energy efficiency standards of a new unit. 

Remanufacturing is an important and integral aspect of numerous UK sectors. Its 

prevalence and application are dictated by several factors including cost of 

original product, speed of technological advance and the ease with which a 

product can be disassembled and remanufactured. Industries such as aerospace 

are exemplars, in which remanufacturing is built into the business models of all 

component manufacturers and is seen as an essential way to reduce costs. The 

aerospace example also counteracts concerns that the remanufactured product 

2 Remanufacturing in the UK, 2004, Oakdene Hollins Ltd 

3 Parts or components that are unfit for reuse may be sent for recycling, recovery or landfill as the next best option. 



will not perform as well as a new item. The wide-spread use of remanufactured 

parts in a heavily regulated and safety-conscious industry demonstrates that a 

remanufactured product can achieve as good as new performance and perform 

in a strictly delineated manner. 

1.3 Remanufacturing RDCs 

It is important to understand the process of remanufacturing as it is applied to 

RDCs. As a basis, The Bond Group (TBG) has kindly allowed us to characterise 

their remanufacturing activities. 

TBG is one of the largest RDC remanufacturers in the UK. Based in Sheerness 

on the Isle of Sheppey, Kent, TBG employs around 210 staff. In addition to the 

Sheppey remanufacturing hub, TBG has three regional service and distribution 

centres in Swindon, Stoke-on-Trent and Falkirk which offer onsite repair services. 

In 2008, TBG remanufactured approximately 4,000 RDCs at Sheppey. 

TBG operate a product-oriented service business model: They do not own any 

RDCs but support RDCs already in the field (for extending life or upgrading) by 

remanufacturing on the retailer‟s behalf. In general, the old, remanufacturable 

cabinets are stored in TBG‟s warehouse. When TBG receives an order to refit a 

store, the number and type of RDC required is determined. The stored cabinets 

at TBG are remanufactured and the old in-store stock is replaced with the 

remanufactured units. Any salvageable cabinets from the in-store stock are 

placed in storage ready for remanufacturing, with the remainder being sent for 

disposal. 

This system requires the retailer to have a surplus stock of RDCs, but allows the 

old stock to continue operating whilst TBG remanufactures the stockpiled 

cabinets. An advantage to this system is that the lead time between placing an 

order and installing the remanufactured cabinets is significantly shorter than 

buying new: The whole process takes between two and four weeks. 

There are several other advantages to remanufacturing RDCs. For example, the 

ability to mix and match old functional store cases with remanufactured cases 

when performing a partial refit enables the store to keep RDCs looking 

aesthetically similar. The purchaser saves twice: Once from the reduced cost of 

the remanufactured product and again from reusing serviceable RDCs within the 

refit. 

By holding older units in stock, TBG also has the facility to trade RDCs between 

retail companies to fill a large or unusual order. To service and repair such a 

wide selection, TBG has had to develop an extensive knowledge base, 

encompassing detailed technical drawings of hundreds of RDC models. 

The remanufacturing process performed at TBG has been developed to ensure 

that the RDC reaches the retailer in the expected specified condition. A brief 

description follows illustrating the steps performed to remanufacture a remote 

RDC. 



Initial inspection 

The RDCs are inspected both in-store and then on return to TBGs warehouse. 

Unsuitable units are stripped of reusable parts and then sent for disposal. This 

has led to TBG carrying some 80,000 spare parts for a wide range of RDCs. In 

fact, they are now a source of spare parts for other remanufacturers and OEMs in 

need of parts for older models. 

Deconstruction, repair and resurfacing of cosmetic and 

functional components 

The RDCs are stripped down and the facing panels are removed, cleaned and 

inspected for damage. They are then repaired and refinished with a powder 

coating paint. The shelving and brackets are treated in the same way: they are 

removed, repaired, replaced and then resurfaced. The aim of these operations is 

to ensure, from a consumer‟s perspective, the RDC looks new. Spare facing 

panels and shelves can be accessed through TBG‟s spares store. It is also 

possible to incorporate new components into the remanufactured units. The 

remaining case is then cleaned ready for further processing. 

Inspection and replacement of the fans 

The largest energy-using component of remote RDCs is the cooling fans that 

drive cool air throughout the RDC. These parts are generally replaced with new 

during remanufacturing because of the stresses imposed on the components 

over the life of the unit. There is however, the option to replace the fans with 

more efficient models which can significantly reduce the overall operational cost 

of the unit. This decision is largely a commercial one made by the retailer. 

Inspection and replacement of the cooling coils 

Depending on the age and type of the RDC, moves to higher evaporation 

temperature refrigeration cycles may require changes to the design of the 

evaporator coils. These are replaced on older units to bring the remanufactured 

RDC up to modern efficiency standards. 

Inspection and replacement of the controlling circuitry 

TBG inspect, test and upgrade the electronic controlling circuitry. 



Re-assembly and final inspection 

The RDC is then reassembled and final engineering checks are made to ensure 

that the unit is performing as expected. Where significant modifications have 

been made to the case, cooling system or fans, the unit can undergo a rigorous 

energy and cooling efficiency test on-site to ensure it meets a specified standard. 

This can also be used to re-certify the unit with a new energy efficiency rating. 

The final product is then packaged ready for installation in-store. 



2 Benefits of 

remanufacturing 

This section describes general remanufacturing benefits prevalent in all industry 

sectors and quantifies the waste reduction and carbon benefit of remanufacturing 

a single „average‟ RDC. 

2.1 Introduction and general benefits 

There have been several studies showing both the environmental and business 

benefits of remanufacturing. 4 , 5 

In addition to the reduction in greenhouse gas 

emissions and material use delivered by remanufacturing, and the cost benefits 

realised by both remanufacturer and purchaser, there are several less 

measureable benefits from remanufacturing. These include: 

Enhanced skills and employment 

Anecdotally, the skills level and pay of the staff involved in remanufacturing are 

higher than counterparts who are involved in recycling. The main reason for this 

is that the operations within a remanufacturing factory are more complex and the 

remanufactured product is significantly more valuable than equivalent recycled 

material. 

A higher workforce skills rate has positive implications for the wider economy. A 

more skilled workforce is required to compete with our main international rivals: 

the higher skills set and higher pay also result in a net increase in gross 

value-added per employee, which is a key indicator of economic success. Based 

on this argument, policy makers should (all other variables being equal) be 

encouraging remanufacturing over recycling. 

4 Remanufacturing in the UK, 2004, Oakdene Hollins Ltd 

5 See also for example www.remanufacturing.org.uk 



Enriched customer relations 

There are opportunities for remanufacturers to develop closer ties with 

customers. Where service-type agreements are developed, or where an 

organisation remanufactures products to order, there is greater contact between 

client and provider. Such activities lead to the development of good business 

relationships, which can lead to further business or the resolution of other areas 

of business where there have been problems. 

Improved product failure knowledge 

A key problem for OEMs is in obtaining statistical data on modes of failure of their 

products outside of warranty. Such data could be used to improve the reliability 

of their product. It will also highlight less critical failures such as unusual wear 

patterns or long-term unexpected behaviour of the product. Third party 

remanufacturers can use this to their advantage to design out any defects 

present in the original product, which can then be used as a selling point. 

2.2 RDC energy usage 

With the open-fronted design currently in favour, RDCs require significant 

amounts of energy to chill products. In general, they will operate 24 hours a day 

over a period of 5 to 8 years. We estimate that the usage phase accounts for 

approximately 95% of the total carbon emissions produced over its lifetime. 

Accordingly energy efficiency improvements which address the use phase are a 

priority. 

For this assessment an „average‟ 12ft RDC with a total display area of 

approximately 6.5m 2 is used. If the best case scenario is taken (whereby the 

RDC conforms to the ECA requirements for a Class M1 remote display unit 

operating between -1°C and 5°C) the RDC will require 74 kWh of electricity per 

day to chill, or 27,000 kWh per year. Remote RDCs have a life of between 5 and 

8 years, therefore over an average 6.5 years‟ lifetime 176,000 kWh of electricity 

will be consumed, corresponding to about 76 tonnes CO 2 e, which is equivalent to 

the average annual emission of 25 cars. 

2.3 RDC energy improvements 

Simple modifications can be made to the RDC‟s design in order to reduce energy 

consumption. Fitting a set of doors can reduce the amount of electricity used for 

cooling by as much as half. However, doors are often seen as undesirable as 

they are believed to reduce the purchase of goods, or are impractical where 

frequent access by customers is required. In these cases protective night blinds 

may be used to cover the front of the display cabinet when access is not required. 



Potentially this can reduce the amount of power used by a third when the blinds 

are down. However, such savings require appropriate training and use by retail 

staff. 

Smaller design changes which do not affect the function or aesthetics of the 

cabinet can also reduce the use of electricity. Improving airflow within the cabinet 

or fitting more efficient fans can lead to energy savings of 6-7%. More recently 

technology such as energy efficient LEDs has been used to reduce the lighting 

power consumption. However these are not appropriate in certain cases as the 

colour spectrum of LEDs can perturb retail customers. 

These new technologies and designs do not require a significant change in case 

design and manufacture, and can easily be incorporated as part of the 

remanufacture process. Changes in fans and shelf design during remanufacture 

allow RDCs to be brought into line with the latest energy efficiency specification. 

If these design alterations are not made, the large contribution to CO 2 e emissions 

from the in-use phase mean that the environmental benefit of remanufacturing 

can be negated. Therefore within this study we assume that new and 

remanufactured RDCs have equivalent energy consumption, lifetime and 

performance. 

2.4 RDC carbon footprint 

Description of Model 

To assess the carbon footprint associated with manufacture, and the potential 

material and carbon savings possible through remanufacture, we evaluate two 

different pathways, Figure 2.1. 

An identical path is followed by both units until they reach their end of life: both 

therefore undergo initial manufacture and use phases. After this point two 

different routes are taken. In the case of Route A the original unit is disposed of 

either through recycling or landfill. An entirely new RDC is then manufactured, 

which undergoes another use and disposal cycle. If Route B is followed, the 

original RDC unit is remanufactured and is returned as new for use. Therefore a 

single remanufacturing cycle will replace the manufacture of an entirely new unit 

and the corresponding extra disposal required. A more complete description of 

this methodology can be found in our previous work. 67 

6 Carbon footprint of tyres: new versus remanufactured, 2008, CRR 

7 Toner refills and cartridge world: Comparative carbon footprints, 2008, CRR 



Figure 2.1: Representation of the various fates of newly manufactured and remanufactured RDCs 

that enable the development of a carbon footprint comparison. 

Route A – A succession of new units 

1 st RDC 2 nd RDC 

Manufacture 

Disposal 

Manufacture 

Disposal 

Use 

Use 

Remanufacture 

Remanufacture 

1 RDC 

(but not necessarily the same RDC) 

Route B – With one or more remanufacturing lives 

Materials 

RDCs are constructed from a variety of relatively common materials, but their 

compositions vary due to the different designs. For this study, after discussion 

with industry, an average RDC composition has been defined. Table 2.1 

describes the material composition of a typical 12ft wide unit with a total display 

area of 6.5m 2 comprising materials weighing 750kg. The mass of materials 

replaced during the remanufacturing process was estimated using figures 

obtained from literature sources. 

Table 2.1: the material composition of an „average‟ 12ft RDC and the estimated material needs to 

remanufacture the unit. 

Material Kg % Remanufacture % (of new) 

Chipboard 15.0 2 0.0 0.0 

Stainless Steel 15.0 2 0.6 0.08 

Mild Steel 525.0 70 123.8 16.5 

Glass 22.5 3 0.0 0.0 

Copper 75.0 10 43.8 5.8 

Aluminium 22.5 3 14.0 1.9 

Plastics 22.5 3 15.0 2.0 

Foam 45.0 6 25.0 3.3 

Fibre Glass 7.5 1 5.0 0.7 

Total 750 100 222 30.2 



Assumptions 

We estimate that the standard remanufactured RDC contains 30% new material 

by mass, the remainder being obtained from the original RDC without significant 

modification. The level of reuse is likely to be higher than this because the 

remanufacturing process can use salvaged parts and materials from other cases, 

which would further reduce the amount of new raw material used. However, this 

is difficult to estimate correctly without an in-depth trial and therefore we use the 

30% baseline figure, thus avoiding an unsubstantiated, over-optimistic analysis. 

A number of other assumptions have been made in the comparison: 

The remanufactured unit is considered to perform as new. Therefore, the 

energy consumption and lifetime both of a new and of a remanufactured 

RDC are identical (as described above). 

Parts and materials come from similar sources for manufacture and 

remanufacture and therefore individually have equivalent carbon 

footprints. 

Recycling of un-reusable materials is accounted for in the carbon footprint 

values of materials manufacture, and is assumed to benefit components 

used in new and remanufactured components equally.. 

The carbon footprints associated with the activities of disposal through 

landfill or recycling and disassembly for remanufacture are assumed to be 

the same. Similarly, carbon footprints associated with original 

manufacture and the reassembly required for remanufacture are 

estimated to be the same. These assumptions are likely to be inaccurate. 

However, compared to the environmental burden of materials, the 

contributions from these activities are believed to be relatively low. 

At end of life, new and remanufactured RDCs are disposed of in the same 

way with the same environmental burden. 

The carbon footprint associated with both manufacturing and 

remanufacturing activities is taken to be 1/3 of the materials‟ carbon 

footprint for a new RDC. 

For this model the manufacturing of the new RDC is defined as taking place 

abroad but within continental Europe, and remanufacturing is assumed to take 

place regionally within the UK. The level of recycling of raw materials is typically 

higher within Europe compared with other countries of manufacture, and the 

carbon footprint data used for the raw materials reflects this. Manufactured 

products from the Far East will – on the whole – incur a larger transportation 

impact. To simplify, the impact of transportation associated with the different 

routes is considered, with the following assumptions being made: 



Raw materials are assumed to travel 1,000km for new and 

remanufacturing activities. 

Transport of a new RDC is set at 1,000km from manufacturing site to 

installation site (i.e. European supplier). Remanufacture is assumed to 

take place in the same country, therefore this distance is reduced to 

250km. This is included in the manufacturing/remanufacturing estimates. 

At end of life an RDC may be disposed of or remanufactured. The carbon 

footprint associated with the two transport activities is assumed to be the 

same at 250km. 

Carbon footprint 

The results from carbon footprint (excluding use) calculations, using the method 

outlined above, are shown in Table 2.2. 

Table 2.2: Results from the carbon footprint calculation comparing the production of a new and 

remanufactured RDC. 

Two separate units (kg Remanufacture (kg CO 2 e) 

CO 2 e) 

1 Cycle Manufacture 3,936 Manufacture 3,936 

Disposal 249 Transport to Reman. 58 

1 Cycle Manufacture 3,936 Reman 2,025 

Disposal 249 Disposal 249 

Total 8,370 Total 6,267 

Remanufacturing saves 

(rounded) 

2,100 

The carbon footprint for one lifecycle of manufacture, use and disposal of a single 

new RDC is estimated to be 80,000 kgCO 2 e. The use phase produces 

approximately 95% of these emissions, with manufacture and disposal 

accounting for only 5% (i.e. ca. 4,000 kgCO 2 e). 

Comparison between remanufacturing and manufacturing demonstrates that 

remanufacturing reduces the carbon footprint by an estimated 2,100 kgCO 2 e per 

remanufacturing cycle. Industrial sources indicate that it is possible to 

remanufacture an RDC two or three times. Therefore, if the remanufacturing 

cycle lowers the carbon footprint by the same quantity each cycle, and an RDC is 

remanufactured to the same degree an average of 2.5 times, the total reduction 

in carbon impact is 5.3 tonnes CO 2 e per RDC. This figure needs to be divided 

over the total number of lifecycles of the RDC (including the original 

manufacturing cycle). Figure 2.2 illustrates. 


Embodied Carbon [kg] 


Figure 2.2: The potential saving through several remanufacturing cycles of an RDC. 

Cumulative Lifetime Effects of Reuse 

18000 

16000 

14000 

12000 

Net savings over 3 

cycles of reman 

10000 

8000 

6000 

4000 

2000 

1st Life 

3rd Life 

2nd Life 

4th Life 

0 

One-shot 

Reman'ed 

Based on this assertion, on average, a remanufactured RDC reduces the carbon 

footprint of manufacture by 1,500kg of CO 2 e per lifetime. 

The carbon footprint calculations give a good indication of the environmental 

benefit of the remanufacturing process. However, factors such as the 

consumption of virgin materials, fossil fuel depletion and waste disposal are not 

fully taken into account. Generally, remanufacture will reduce these effects 

compared with the construction of a new RDC. Therefore RDC remanufacture 

will have a larger benefit if the total environmental footprint is considered. For 

illustration, reusing steel saves 96% of the environmental impact over virgin 

steel. 8 

It is also important to state that the ability to remanufacture is dependant on the 

build quality of the RDC. If there is significant corrosion, (which is likely with the 

absence of a stainless steel base) then remanufacture is uneconomic, meaning 

the only suitable option for such cases is disposal. This reduces the potential 

benefit from remanufacturing. 

8 “Reclaimed building products guide”, WRAP, 2008 



3 Market review 

Understanding current, future and potential activity within the RDC 

remanufacturing industry is central to determining its relevance to the UK 

economy and the corresponding environmental impacts. This section explores 

trends in market size of the industry and estimates the maximum economic and 

environmental contributions theoretically achievable through remanufacturing 

RDCs. It also outlines the views and experiences of buyers of remanufactured 

RDCs, which is necessary in understanding the motivations for and against 

purchasing them. 

3.1 Current activity and future activity 

The appendix describes available literature on the estimated market size for both 

new and remanufactured RDCs. A summary of this analysis is outlined in Table 

3.1. 

Table 3.1: The (2008) estimated market for RDCs in the UK 

Type 

Total 

stock 

(units) 

Estimated 

old stock 

to be 

renewed or 

refurbished 

(units) 

Stock 

refurbished 

each year 

(units) 

New stock 

purchased to 

replace old 

stock 

(units) 

Additional 

new units to 

increase 

capacity 

(units) 

Integral 412,411 58,360 7,003 51,357 23,344 

Remote 217,611 32,647 3,917 28,725 8,370 

Total 630,023 91,002 10,920 80,082 31,714 

By analysing trends in the market situation since 1998, we have projected the 

future market for both integral and remote RDCs. Listed below are some 

assumptions used in this model: 

From 1998 to 2005 the remanufacturing market dramatically reduced from 

approximately 15% of the replacement market to approximately 6%. This 

decline was caused primarily by cheaper new units becoming available 

from continental Europe and the Far East. There was some improvement 

in the market between 2005 and 2008, with remanufacture increasing 

from 6% to 12%. The volume of remanufactured units is likely to increase 

until 2013, however, due to the growing frozen food sector: it is likely that 

the market share for remanufactured units will remain 12%, after which 

the remanufacturing share of the marketplace is expected to increase due 

to a slowing in the expansion in overall chilled and frozen food sector. 



The reliability and lifetime of high quality (UK manufactured) RDCs has 

been increasing since 1998 due to changes in technology. Although we 

estimate that the replacement level of stock will continue at the level of 

20% it is more likely that with increased lifetime and a gradual slow down 

in the growth of the RDC market the level of replacement will fall from a 

level of 15% in 2008 to 10% in 2015. 

The increase in the number of remote RDCs in use is likely to slow in the 

coming years and, after 2015, the number of units in use will remain 

constant i.e. the market for new cabinets, after 2015 will be solely to 

replace EoL cabinets. We estimate that this scenario will result in a slow 

down in the increase in the number of RDCs in use from its present level 

of 7% per annum to approximately 2% per annum in 2015. 

The total stock of integral RDCs is higher than that of remote RDCs but 

there should still be a slowing of growth over the next 10 years. This 

growth will not diminish as much as for remote RDCs. The estimate is 

that this slowdown in growth will reflect in a decrease in the percentage of 

new units from its current level of 6% per annum to approximately 4% per 

annum in 2015. 

Using these assumptions gives us the following overview of the RDC market 

(Table 3.2, Figure 3.1 and Figure 3.2): 

Year 

Table 3.2: Estimated market for Total RDCs 1999-2015 

Total 

stock 

(units) 

Estimated old 

stock to be 

renewed or 

refurbished 

(units) 

Stock 

refurbished 

each year 

(units) 

New stock 

purchased to 

replace old 

stock 

(units) 

Additional 

new units to 

increase 

capacity 

(units) 

1999 360,590 69,071 6,907 62,164 23,590 

2000 385,831 73,906 7,391 66,515 25,241 

2001 412,839 79,079 6,326 72,753 27,008 

2002 441,738 84,614 6,769 77,845 28,899 

2003 472,660 90,537 7,243 83,294 30,922 

2004 505,746 96,875 7,750 89,125 33,086 

2005 537,882 103,656 6,219 97,437 32,136 

2006 568,238 98,543 9,854 88,689 30,357 

2007 598,309 86,443 8,644 77,799 30,070 

2008 630,023 91,002 10,920 80,082 31,714 

2009e 663,472 95,809 11,497 84,312 33,449 

2010e 692,119 100,539 12,065 88,474 28,647 

2011e 722,063 83,893 10,067 73,826 29,944 

2012e 753,364 87,512 10,501 77,010 31,301 

2013e 778,553 75,831 9,100 66,731 25,189 

2014e 804,650 78,360 11,754 66,606 26,097 

2015e 831,690 80,980 12,147 68,833 27,040 


Number of cabinets in use 

Volume of new cabinets 

Volume of remanufactured cabinets 


Figure 3.1: The historical and projected sales of both new and remanufactured RDCs 

140,000 

New RDC 

Remanufactured RDC 

30,000 

120,000 

25,000 

100,000 

20,000 

80,000 

15,000 

60,000 

40,000 

10,000 

20,000 

5,000 

0 

0 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009e 

2010e 

2011e 

2012e 

2013e 

2014e 

2015e 

Year 

Figure 3.2: Growth of the total UK RDC stock over the period 2005 to 2015 (estimates 2009-15) 

Year 



This analysis would indicate that the number of remanufactured RDCs is 

expected to reach over 12,000 units per annum in 2015. It is likely that the 

number of overall RDCs in use will plateau at around 900,000 units between 

2015 and 2020. 

The number of additional new units required to accommodate expansion in the 

market increased between 1999 and 2004. However, there was a decrease in 

this requirement between 2004 and 2007. It is estimated that there will be a 

constant requirement of approximately 30,000 new units between 2009 and 2015 

indicating a slowing of growth in the market. New stock required to replace old 

stock will also decrease from about 2009 due to an increase in the level of 

remanufacture over this period. The overall level of replacement stock 

(remanufactured and new-for-old) will therefore plateau at around the 80,000 per 

annum mark. 

3.2 Opportunity 

Given the current level of remanufacturing, there is an opportunity to increase the 

level of activity for both remote and integral RDCs. This may spur further 

competition from OEMs, which is likely to get tougher as the requirement for 

additional capacity for new RDCs begins to fall post 2015. To maintain or 

increase levels of new sales, OEMs may well focus on the replacement market, 

which will increase pressure on remanufacturers. 

We have estimated that almost 4,000 remote RDCs were remanufactured in 

2008, representing 12 % of the total remote RDC population. This level of 

remanufacturing activity produces an estimated carbon saving of over 8,200 

tonnes CO 2 e per annum. Based on current trends, the level of remanufacture is 

predicted to remain stable until 2015. 

Taking an average 2.5 remanufactures (i.e. 3-4 “lifetimes”) per remote RDC 

implies a CO 2 e saving of approximately 49,000 tonnes per unit. Strictly, to 

estimate the total potential impact of remanufacturing RDCs, (integrals and 

remotes), a second carbon footprint for integrals is required. However, with the 

simplifying assumption that broadly similar benefits can be achieved from 

remanufacturing both integral and remote RDCs approximately 144,000 tonnes of 

CO 2 e pa could be saved. This is roughly equivalent to the remanufacture of 

69,000 RDCs per year. Summary statistics are provided in Table 3.3. If this level 

of remanufacture is met, an extra 58,000 RDCs will be remanufactured. TBG 

currently employs 210 people and remanufactures approximately 4,000 RDCs. 

Based on these figures, an extra 3,050 new jobs in the UK will be required to 

remanufacture these extra units. 



Table 3.3: The current, future and total opportunity for remanufacturing RDCs in the UK and the 

associated CO 2 e savings. 

Type Prediction basis No of Cabinets CO 2 e 

remanufactured 

Remote Current (2009) 3,917 8,200 

Integral and 

remote 

Future est. (2015) 3,937 8,200 

Potential (2009) 23,300 49,000 

Potential (2009) 69,000 144,000 

3.3 Customer Survey 

Background 

A series of interviews was conducted with retailers to obtain their views on 

remanufactured RDCs, and thus understand motivations for or detractions from 

their purchase. 

Some of the respondents have incorporated remanufacture of RDCs for over a 

decade, with it being an integral part of the purchasing process. The number of 

remanufactured units in any particular store varied, but remanufactured units 

were sourced first for refits and, when unavailable, new units considered. In 

some circumstances – in new store openings for example – new units are 

purchased as a first choice, but these are then remanufactured when they reach 

end of service life. (Suitability for remanufacture will depend on the condition 

which is influenced by design, such as having a stainless steel base) 

In all interviews, it was evident that the concern for the customer‟s perception was 

paramount, and if remanufactured models did not appear „as new‟ from the 

customer‟s perspective, then they would not be used. 

Drivers 

Price 

The main driver for use of remanufacture was not environmental issues but price, 

both in terms of capital outlay and efficient use of resource. Whilst the cost 

savings were not as large as in the past (due to low-cost imports becoming more 

widely available in the UK), actual savings are still believed to be substantial, 

particularly over the long term. One retailer stated that some of their units, still at 

high functional standard, are in use in stores after 15-20 years service, and had 

been through three or four remanufacturing operations. 



The quality of cases used in remanufacturing means that, when compared with 

lower cost models, issues arise which result in larger outlays. For example a 

new, low-quality unit may have a fault with a single component, but dismantling 

problems may make it more cost effective to scrap the RDC and buy new. 

Examples such as this have resulted in service lives of less than four years for 

lower quality new RDC models. 

Customisation 

Another driver discussed was dissatisfaction with the standard products available. 

Very little customisation could be requested with new models, as they are mass 

produced. The extent of retailer influence over the model was limited to visible 

cosmetic factors, such as colour and design of shelving. For greater control over 

these factors, one retailer specially commissioned the design and production of 

their own RDCs. This allowed EoL considerations to be factored into design, and 

units were created modularly, allowing easier reclamation of components at end 

of service. Under the customer‟s control, design for deconstruction was also 

considered: For example, joints were not welded and wear parts were easy to 

access for maintenance. These cabinets are being remanufactured regularly. 

Overall, however, the environmental benefits of remanufacture are only a 

secondary consideration. 

Upgradeability 

In recent years, remanufacturing or refurbishing units has been perceived as a 

way of increasing energy efficiency without having to replace the full range of 

RDCs. An example was quoted where the hot gas defrost process had been 

modified to an „off cycle‟ 9 . Existing casings were reused, but the valves and other 

components were removed and replaced. Although not classed as complete 

remanufacture (since the warranty was limited), significant efficiency savings 

were realised; further these types of upgrades could be relatively simply 

incorporated into fully remanufactured units. 

Another example involved the installation of new, more efficient fan motors. 

12,500 were exchanged by one retail chain in 2008. RDCs were taken from one 

store, remanufactured, and then cascaded as replacements in the following store, 

leaving minimal waste. These replacements reduced the heat generated during 

running, reducing the need for further cooling. Although the cost to upgrade the 

cabinets was substantial, running cost savings of £2.25 million per annum were 

realised resulting in a pay-back period of approximately one year. In addition, 

CO 2 e savings of 21,000 te per year were realised. 

9 This type of unit has no defrost timer or heaters. It operates on the basis of the refrigerator operating at a 

temperature high enough to defrost the coil when the compressor is not running. 



In addition to changes in fan design and the energy efficiency savings realised by 

such measures, the move of the retail sector, partly through legislative changes, 

to more environmentally benign refrigeration gases is seen as an opportunity for 

remanufacturers. Alternative refrigerants will generally not require a change of 

coil, which is far more cost effective and less resource intensive than whole unit 

replacement. 

Other drivers 

In the premium food retailing market, high standards sometimes result in 

functional RDCs being discarded for aesthetic reasons, rather than the machine 

being at the end of its life. These can be sold as-is, or after remanufacture, to 

small independent newsagents or cafes through remanufacturers. Having 

relationships with remanufacturers that enable the retailer to perform this activity 

is seen as an advantage as it removes the need to dispose (scrap) of a machine 

and enables the retailer to extract value from the product through resale. 

Corporate Social Responsibility (CSR) is not a major driver in encouraging 

remanufacture and remanufactured RDCs are not generally highlighted in 

company reports. This is partly due to difficulty in recognising and quantifying the 

benefits of remanufacture and because, in fairness, the historic focus has been 

on removing ozone depleting refrigerants and energy efficiency in operation. 

However, retailers were receptive to the inclusion of the environmental benefits of 

remanufacturing RDCs within their published environmental reports. 

3.4 Summary 

From our analysis, the level of activity of UK remanufacturers suggests that they 

produce a significant CO 2 e saving. However, the potential opportunity is 

considerably higher, and could result in 144,000 tonnes of CO 2 e saved annually. 

It appears that there is at least some willingness, for both commercial and 

environmental reasons, from major retailers to purchase and, in some cases, to 

preferentially purchase remanufactured RDCs. It is important however to capture 

reasons why retailers do not use more remanufactured RDCs. This problem is 

discussed in the next section. 



4 Barriers and 

recommendations 

A prime objective of the report is to determine the reasons preventing the uptake 

of more remanufactured RDCs. Conversations with industry sources including 

retailers, third party remanufacturers and original equipment manufacturers have 

revealed a number of barriers. This section outlines these barriers and discusses 

possible solutions. 

4.1 Barriers 

The following are barriers preventing the uptake of remanufactured RDCs which 

may be actual or perceived: 

Poor industry perception and technical understanding by 

retailers 

Retailers have expressed opinions that, whilst the majority of current 

remanufacturers in the industry remanufacture to a constantly high standard, 

historically this was not always the case. Some – now defunct – remanufacturers 

delivered sub-standard remanufactured RDCs, which resulted in returns and 

contract cancellations. This problem has largely been rectified; however, the 

damage to the reputation of the remanufacturing industry has yet to heal. An 

increase in technical knowledge of the retail buyers could mitigate this issue. For 

example, giving engineers responsibility in RDC procurement will lead to a 

deeper understanding of the processes involved in remanufacturing, instilling 

more trust in remanufactured RDCs. 

Indeed, several different retail organisations that actively sought remanufactured 

RDCs suggested that the incorporation of engineers within the purchasing 

decision would increase demand for remanufactured RDCs. The reality is, 

however, that most remanufacturers are perceived as „refurbishers‟ or, if they are 

also an OEM, any remanufacturing performed by the organisation is often 

perceived as a non-core area of work to the business, and thus probably of 

inferior standard. 

This lack of understanding of remanufacture, particularly when purchasers do not 

have an engineering background can be an issue even without any previous 

knowledge of poor performance. The word remanufacture can be synonymous 

with second hand and its associated negative connotations. 



Poor availability of used units 

Supply problems are seen as a major issue in stifling remanufacturing potential. 

The nature of the remanufacturing industry means that supply is dependent on 

sourcing suitable EoL cabinets, which is not always feasible for larger orders. 

This is an acute problem where retailers are expanding their business. However, 

most remanufacturers recognise that there will be a need for new cabinets and, if 

they are of suitable quality, there will be available to remanufacture in the future. 

Another frustrating issue for retailers is that OEMs will only remanufacture ownmake 

units, resulting in unnecessary scrapping of RDCs at end of life. 

Competition from low-price imports 

Currently, remanufactured RDCs can be purchased for approximately 70% of the 

price of new, “budget” units. (These price differentials are smaller than in 

previous years.) Additional storage leads to increased costs of remanufactured 

RDCs, which, if not absorbed by the remanufacturer, will push up prices and 

diminish the savings. Many companies (particularly those with generic 

„purchasing managers‟ or similar) do not have budgets allocated on a long term 

basis and insufficient understanding of the whole life benefits of remanufacturing 

RDCs reduces their uptake. The perceived poorer quality of lower cost RDCs 

means that retailers generally only consider them for scrap at the end of their 

lifetimes (usually after five years). However, if the case itself is in good condition 

these units may also be suitable for remanufacture. This is largely a perception 

issue held by retail buyers. As waste disposal becomes more expensive, 

remanufacture may become more attractive. 

Traditionally, UK supermarkets have wanted units customised with their own 

brand and look, which resulted in higher costs and specifications for RDCs. Now, 

in order to reduce costs, the supermarkets are using more standardised 

European and Far Eastern derived RDCs that are considerably cheaper. 

However, one of the potential advantages of remanufacture is that individual 

specifications can be developed. 

Reliance on goodwill 

Although not directly raised by retailers as a barrier, asset managers must 

perform unit reviews (all cabinets in storage, on shop floor, and currently under 

remanufacture) to determine the need for new and remanufactured cabinets. 

This can occur relatively frequently, weekly in one case. This is not a technical 

process and can be handled by non-senior staff, but it still poses a burden on the 

retailer that they otherwise would avoid by buying new. The use of asset 

management tools is being used to mitigate of this problem. 

Historically, the drive to use remanufactured cabinets has been from key 

individuals within the supermarkets who promoted the use of such products. 



Within these organisations, the reputation of the remanufacturer ensured a 

steady flow of business. Now, market competitiveness and uncertainty dictates 

that the buyers default to much shorter planning and buying horizons. The 

volume of RDC purchases is also variable and dependent on a few key players. 

For example, Morrisons‟ takeover of Safeway led to a significant drop in the 

orders from Safeway; a similar scenario occurred when ASDA was bought by 

Wal-Mart. 

Whole life costs are not considered 

Due to the purchasing procedures of several retailers, the tendency to buy new is 

reinforced. Yearly budgets and budgets which are focused on capital outlay 

mean that there is little incentive to purchase the most energy efficient cabinet, or 

cabinets which are suitable for remanufacture. Also, we have seen little evidence 

that retailers consider the environmental consequences of buying new as 

opposed to remanufactured RDCs. 

Imbalances in fiscal incentives 

Financial incentives available for the new energy efficient RDCs are not open to 

remanufactured units. The Enhanced Capital Allowance (ECA) scheme was set 

up to encourage companies, through tax allowances, to choose energy-efficient 

plant. This scheme has been criticised by both retailers and manufacturers. The 

complexity in applying for ECA means that some retailers are not fully claiming 

under the scheme, which in turn is a disincentive for the manufacturer to apply. 

Remanufacturers are also affected. The ECA scheme specifies that “Only 

spending on new and unused energy-saving equipment can qualify for ECAs” 10 

ostensibly making remanufactured units ineligible for the scheme. Anecdotally 

though, there is some uncertainty over this point and further discussion with the 

Department for Energy and Climate Change is necessary. An additional problem 

is that, even if remanufactured RDCs meet the environmental standards, 

subjecting individual RDCs to the testing criteria will be prohibitive. 

10 http://www.eca.gov.uk/etl/about/, accessed on 07/05/2009 



4.2 Recommendations 

Enhance retailer education 

A whole life cost model would fairly reflect the benefits obtainable from 

remanufactured RDCs and allow genuine comparison against new units of all 

price brackets. Suitably presented, there is potential to shift the purchasing 

decisions of the retailers. It is apparent that the organisational structure of 

retailers encourages buyers to look at the lowest initial cost of the products and 

not the lifetime impact of the initial purchase. Therefore engaging retailer buyers 

who have overall control of the purchasing process of cabinets is critical to the 

uptake of remanufactured RDCs. 

A change of focus to act through the CSR arms of retailers could also be 

productive. Since the issue was raised that reliable environmental savings data 

were not available, abstracting the figures and tables in this report will be a good 

step to addressing this. 

If at all possible, the final purchasing decision for RDCs should involve the 

engineers and the service personnel within the retailer. This should ensure that 

remanufacture is given sufficient consideration. 

Make the case for accreditation and level tax incentives 

The Enhanced Capital Allowance (ECA) scheme was set up to encourage 

companies, through tax allowances, to choose energy-efficient plant. Certain 

new RDCs can also qualify for this scheme. Currently, the ECA scheme only 

covers new equipment to the detriment of remanufactured products. There is 

evidence that remanufactured RDCs can be as energy efficient as new, therefore 

there is a strong argument that appropriately remanufactured RDCs should also 

be included on the ECA lists. This could be achieved by carefully selecting 

certain remanufactured cabinets for inclusion into the scheme or by including 

remanufactured cabinets which meet the requirements of the ECA. The resulting 

tax relief could provide a large enough incentive to encourage the purchase of 

more remanufactured RDCs. 

Clearly, however, there are certain institutional and regulatory barriers that need 

to be overcome. One of the main concerns from policy makers is the potential for 

unscrupulous operators to offer equipment that has not undergone thorough 

remanufacturing protocols. Systems for accreditation and standardisation of the 

methodologies for remanufacturing RDCs need to be adopted to ensure that only 

energy efficient, high quality remanufactured cabinets are eligible for tax 

incentives. Additionally, since remanufacturers can upgrade fridges to meet 

modern efficiency targets, further discussions may be necessary to address the 

complexities of remanufactured RDCs meeting energy efficiency criteria with 

different configurations. In parallel, an investigation of the current testing 



procedures may be prudent to determine if, as reported through interviews, there 

is a disparity between the claimed efficiency ratings of some new RDCs and their 

actual performance. Based on these findings, it may be necessary for the RDC 

industry to adopt a set of transparent standards or protocols to address this 

problem. 

Form alliances between OEMs and remanufacturers 

The size of order that a remanufacturer is able to fulfil is limited to the amount of 

suitable end of life RDCs available to them. Ultimately, remanufacturers are 

reliant on five year old purchasing to enable them to effectively remanufacture 

RDCs. If the cases purchased are unsuitable for remanufacture then the 

remanufacturer cannot compete for business. A potential solution to this would 

be through the formation of a strategic partnership with an OEM. This could have 

benefits for both parties. The remanufacturer would be able to bid for orders 

which they could not normally complete through remanufacturing alone, and the 

OEM will find another outlet for their product. Although this may result in the 

OEM losing sales to remanufactured product, it also makes any bid more 

attractive due to the lower costs of the (cheaper) remanufactured RDCs as part of 

a larger bid package for the retailer. In addition, any orders which require the 

OEM to remanufacture units with which they are unfamiliar can be placed through 

the third party remanufacturer. 

Deliver industry-wide changes through a trade organisation 

Although the interests of the RDC industry are represented by The Federation of 

Environmental Trade Associations (FETA) and the British Refrigeration 

Association (BRA), there have been concerns that the viewpoints of 

remanufacturers are under-represented. By developing a subcommittee within 

one of these trade bodies, the concerns and priories of the remanufacturing 

industry within the UK could be addressed. 

Developing and delivering industry reform through a trade association is likely to 

yield results faster than through direct governmental lobbying. Areas where 

industry collaboration could result in higher levels of remanufacturing include: 

Adopt an industry wide standard on the quality of new RDCs, for example 

specifying the use of stainless steel bases to aid the remanufacturing 

process. 

Develop an industry recognised code of practice for remanufacturing to 

ensure quality and comparability, and hence reduce the risk of purchase 

for the retailer. 







Responsibility report, not least by publishing quantities bought and 

reused. 

Agree a, public, discriminating, auditable set of test standards for RDC 

energy efficiency rating that fairly reflects as-used performance and also 

ensures that new RDCs meet their advertised efficiency ratings. 

Lease through the service model 

The ancillary support structure afforded by many remanufacturers to perform 

installation, servicing, on-site refurbishment and customer-led RDC stock tracking 

could potentially be utilised to modify the remanufacturing business model. 

Currently, retailers own most of the RDCs used in-store. This places the burden 

of determining which RDCs are suitable for remanufacture and which to buy new 

on the retailer. This presents a problem in that the effort required by the retailer 

can be prohibitive, leading retailers to prefer buying new rather than 

remanufacturing. A preference for remanufacture by a retailer is usually a 

consequence of specific individuals within the organisation. While these personal 

preferences are important, over-reliance on individuals could be detrimental to 

the future viability of the remanufacturer‟s business. The effort that a retailer has 

to expend to obtain remanufactured cabinets must be minimised. Certain 

remanufacturers, such as TBG, have to some degree begun to address this issue 

by introducing on-line stock-tracking software that the retailer can access. 

A more radical solution could be for remanufacturers to take ownership of the 

RDC and charge a leasing fee. This has several advantages over the current 

regime. 

For the retailer, it: 

Reduces overheads associated with the servicing, maintenance and 

purchasing of new RDCs. 

Reduces the up-front capital costs of buying new RDCs. 

Offers flexibility to increase or decrease the number of RDCs in stock. 

Removes the need to track stored stock at the remanufacturer. 

For the remanufacturer, it: 

Offers the opportunity to forge closer, long term relationships with 

retailers. 

Ensures that newly installed RDCs are optimal for remanufacture. 



Places the emphasis of cost reduction (and therefore increased 

remanufacture) on the remanufacturer. 

Enables the remanufacturer to be cost competitive even with poor quality 

new RDCs. 

Simplifies the purchasing decision, encouraging more trade with the 

retailer. 

There are, however some disadvantages: 

The retailer has a more complicated working relationship. 

Some infrastructural changes may be required of the retailer. 

Significant change may be required of the remanufacturer‟s business 

model. 

There is an increase in the capital expenditure for the remanufacturer. 

Overall however, such a change in business model may lead to more and repeat 

business with retailers. 



5 Conclusions and way 

forward 

RDCs are ideally suited to remanufacture and can be upgraded to meet current 

energy efficiency specifications. Most of the carbon footprint of the RDC is 

derived from its use phase. If the RDC can be remanufactured so that its energy 

efficiency matches that of the latest designs, the remanufactured RDC saves 

2,100 kg of CO 2 e. Based on our estimates of the annual number of RDC 

replacements, if remanufacturing became prevalent throughout the entire retail 

sector, the industry could prevent the generation of approximately 144,000 

tonnes of CO 2 e per year, which is equivalent to the average emissions generated 

annually by around 50,000 cars. 

There is an appetite within certain retailers in the UK to use remanufactured 

RDCs. The main reason retailers use remanufactured RDC is to reduce costs At 

present the environmental advantages of using RDCs are not a major 

consideration. Other advantages from the retailer‟s perspective include the ability 

to perform energy efficiency upgrades at a reduced cost, and to enable specified 

customisations which enhance the retail brand. 

Several factors are preventing growth of remanufacturing in the RDC market: 

The use of low-cost imports has eroded but not eliminated the cost 

advantage of remanufactured RDCs. 

A poor reputation, largely earned through disreputable dealers, makes 

selling remanufactured RDCs more difficult, with remanufacturers often 

relying on their reputation with individuals within the buying departments 

of retailers to make sales. 

A whole life cycle view which can be an incentive to value the longevity of 

the products is largely absent. However, purchasing structures within 

retailers frequently favour a „cheapest is best‟ choice. This is despite the 

fact that the cheapest new RDCs can fail prematurely and are of such 

poor build quality that they are unsuitable for subsequent remanufacture. 

The current taxation regime encourages users to buy the most efficient 

RDC, but only apply to new purchases. 

There are three general recommendations to increase the level of 

remanufacturing: 

Engage and educate retailers on the benefits of remanufacturing. 



Expand tax allowances to include remanufactured RDCs. 

Evolve remanufacturers into service-led business with expanded ranges 

of options for purchasers including leasing both new and remanufactured 

RDCs. 

And specific actions that might be taken by the RDC manufacturing and 

remanufacturing industry itself are: 

Adopt industry wide standards on the quality of new RDCs, for example 

specifying the use of stainless steel bases to aid the remanufacturing 

process 

Develop an industry-recognised code of practice for remanufacturing to 

ensure quality and comparability, and hence reduce the risk of purchase 

for the retailer. 





Responsibility report, not least by publishing quantities bought and 

reused. 

Agree a public, discriminating, auditable set of test standards for RDCs 

(both new and remanufactured) energy efficiency rating that fairly reflects 

as-used performance. 





Appendix 

Additional modelling data 

Table A: Assumptions of the RDC market 1998-2015 

Removed for client confidentiality 

Table B: Estimated market for INTEGRAL RDCs 1999-2015 


Table C: Estimated market for Remote RDCs 1999-2015 


Estimate of RDC market size

Report on the remanufacturing of refrigerated display cabinets

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