Report on the remanufacturing of refrigerated display cabinets

©Centre for Remanufacturing & Reuse 2009
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.
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