Hella wants to grow remanufacturing business

Supplier is refurbishing old engine control systems, starters and alternators

Lippstadt, Germany. Hella wants to significantly expand its remanufacturing division.

"The regeneration of components in future will become a significant business sector for us," said Joachim Damasky, head of Hella KG Hueck and Co.'s automobile trading product sector.

The company is focusing more on vehicle electronics while still supplying classic regeneration products such as starters, alternators and air conditioning compressors. Since April Hella has been offering about 60 of the most common engine control systems that are no longer being manufactured. The company is only supplying the parts in Germany but plans to sell them in Austria, Denmark, the Netherlands, Belgium and Luxembourg by the end of the year.

Hella will sell its repaired electronic parts in other European countries starting in 2005. Damasky estimates that the European market volume for remanufactured parts may be worth approximately 3 billion euros.

Hella's regeneration sector has already achieved sales of around 130 million euros so far this year. "That will double during the next eight to 10 years," Damasky said.

Hella is also considering remanufacturing parts by other manufacturers. Negotiations are under way.

Tags: Suppliers

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