Circularity

We foresee many opportunities to contribute to a circular economy while capturing profitable growth through new business models and solutions. Our main circularity work focuses on product design and expanding the lifetime of our products. 

As our business is based on manufacturing large and heavy equipment, our operation is highly dependent on finite resources, such as steel. Therefore, by advancing circularity, and for example, replacing virgin steel with recycled steel and alternative materials, we can ensure that our business remains resilient and competitive. Also by providing more service, including lifecycle solutions, we can keep the equipment operating longer and more efficiently, meaning less virgin resources are needed and less waste is generated along our value chain.

To promote the transitioning to a circular economy, Kalmar aims to expand its service offering from traditional maintenance and spare parts sales to providing a wider range of lifecycle solutions and intelligent service offering. Some examples of our lifecycle solutions include short- and long-term equipment rentals, refurbishments, and retrofit solutions, whereas the intelligent service offering consist of, for example, remote and predictive maintenance and “Equipment as a Service” business solutions. Enhancing the digital offering to proactively address customer challenges is considered a big opportunity. Services and solutions extending the lifecycle of Kalmar products are an essential part of the company’s business model and strategy, as well as the eco portfolio. The services business also offers resilience due to the recurring nature of the orders, and helps Kalmar stay close and provide support to its customers throughout the equipment lifecycle, providing valuable usage data.