New energy-efficient foundry helps
Scania make cost savings
December 20, 2017
Truck and bus maker Scania is planning to invest SEK1.5bn (€150m) in a new energy-efficient foundry, taking advantage of heat recovery technology and more efficient materials handling.
The new facility in Södertälje, Sweden will triple production capacity and achieve a 50% reduction in energy consumption compared to the technology and methods used in the current foundry, the Swedish company said.
The largest energy gains will be obtained through improvements in the casting process and recovery of the heat this generates.
In addition, the company will see a sharp reduction in the transport need per manufactured unit thanks to more efficient materials handling and recycling, including recycling of the sand used in production of casting moulds. The technology used in the current foundry does not permit any sand recycling, but the in new plant it will be possible to recycle 70% of the sand used.
Cost savings from this measure will be significant, because the sand is transported long distances by truck. These transports will not increase despite a tripling of production volume.
Scania also said that the new foundry will be operated using electricity produced from renewable energy sources.
The decision to invest in a completely new foundry followed a comprehensive analysis of various alternatives, such as increased purchasing from external suppliers or a conversion and extension of the existing foundry.
"A completely new plant is the most cost-efficient solution and the best alternative from an environmental and quality standpoint when it comes to the future supply of strategically important parts for our engine production," said Ruthger de Vries, executive vice president and head of Production and Logistics at Scania. "Through this investment, we will also retain important proximity to our research and development organisation, which is concentrated in Södertälje. Meanwhile, this means that Södertälje will continue to be the hub for our European engine production."
The new foundry will have almost 200 employees at full capacity utilisation -- the same number of people as the existing foundry.