Detroit Diesel Remanufacturing announces expansion and consolidation of its DMR facility

Detroit Diesel Remanufacturing (Detroit Reman) last week hosted industry media at its facility in Hibbing, Minn., to showcase the electronics remanufacturing and manufacturing capabilities of its DMR (Design, Manufacture and Remanufacture) plant.

At the same time, the company announced its move to a new speculative industrial building located on the Range Regional Airport property.

A part of the Daimler AG family, Detroit Reman is the leader in the remanufacture of products for on and off-highway power systems. This include a wide range of products remanufactured, including engines, axles, water pumps, water and oil pumps, transmissions, electronics, turbochargers, fuel injectors, cylinder heads and diesel particulate filters.

In addition to a strong foundation in the heavy duty equipment, truck and passenger car markets, product segments also include agriculture, transit and rail applications.

Detroit Reman, which has been remanufacturing products since 1966, has facilities is Cambridge, Ohio; Tooele, Utah; Emporia, Kan.; Kentwood, Mich.; Hibbing, Minn.; and Toluca, Mexico.

Move announcement

The move of the DMR facility is the result of continuing support from local agencies, including the Iron Range Resources and Rehabilitation Board - whose mission is to promote and invest in business, community and workforce development for the betterment of northeastern Minnesota, said Shaun J. Germolus, executive director of the Chisholm-Hibbing Airport Authority and Range Regional Airport. The new project in is expected to create 50 new jobs over the next three to five years in Hibbing.

Hibbing is located about 85 miles northwest of Duluth, Minn., within the Iron Range - a region that makes up the northeastern section of Minnesota. Hibbing is the boyhood home of Bob Dylan, birthplace of baseball great Roger Maris and where Greyhound Bus Lines was founded.

The Hibbing facility has experienced significant growth since its acquisition by Detroit Reman in 2007, said Stefan Kurschner, company president. An additional 30,000 sq. ft. will immediately be added to the 30,000 sq. ft. airport location to provide the space necessary to support the electronic manufacturing and remanufacturing activities well into the future.

Relocation and consolidation of DMR's four existing operations will be completed in early 2015.

Committed employees

"Detroit Reman is more than a remanufacturer of heavy iron," Kurschner pointed out. "Through the growth and evolution of the Hibbing plant over the past six years, and because of the creativity and passion of its employees, Detroit Reman has become an expert in the manufacture and remanufacture of high-quality electronics products."

"The highly technical skills of our employees and our continuing cooperation with local agencies made the decision to expand on the Iron Range an easy one," added David Rhode, plant operations manager at the DMR plant. "Today represents the next chapter in Detroit Reman's long-term commitment to our employees and the region."

The move to the new facility accommodates Detroit Reman's planned expansion and growth in Hibbing and retains 100 existing jobs.

New company head

Also announced at the event was the appointment of Sanjiv Khurana as president of Detroit Diesel Remanufacturing. He is succeeding Kurschner who begins his new assignment as president and CEO of Daimler Vehiculos Comerciales Mexico this September 1.

Electronics work

Detroit Reman's Hibbing DMR facility specializes in the remanufacture of a complete line of electronic and mechatronic components under various brands, including the Detroit Genuine Parts brand for Daimler Truck North America's on-highway market. The current product portfolio includes new and remanufactured engine controllers, transmission controllers, vehicle controllers, turbo actuators, EGR actuators, variable pressure output devices, intake throttle controllers, instrument clusters and audio amplifiers.

DMR offers contract manufacturing services for custom wiring harnesses, circuit board assemblies, UL-certifiable control panels, test systems and relay boxes for a growing list of key contract customers that includes AGCO, Kress, Rosenbauer and New Flyer. The facility also specializes in new electronic builds to support lifecycle management and control products' end-of-life costs.

Benefits of remanufacturing

More than recycling, the remanufacturing process recovers the value in existing manufactured goods to restore them to original or better condition, said Wade Thorosn, engineering manager at Detroit Reman's DMR plant. Remanufacturing dramatically lowers the total cost of ownership by giving manufactured assets a second life and creating a sustainable business model.

In addition to benefits from both business and economic perspectives, remanufacturing provides environmental benefits.

Remanufacturing is recognized as the highest form of recycling, producing "like new" products while minimizing impact on the environment, he noted. By reusing existing parts, the remanufacturing process conserves natural resources, saves energy and reduces pollution.