PT Indotruck Utama (ITU), the Indonesian dealer for Volvo CE Asia, has inaugurated a new Component Rebuild Center (CRC) in Balikpapan, Indonesia, in February. The new facility supplies rebuilt components to the Indonesian logistics and general construction markets, advancing the company’s ambitions toward a more circular economy for construction equipment.
The scope for the new center is significant: Indonesia is home to over 2,000 Volvo CE articulated haulers, hundreds of rigid haulers, and large excavators, which typically experience high utilization rates and, consequently, high parts replacement rates.
Through the investment in CRC, ITU will now be able to double the capacity of rebuilt components it supplies to the local market from 600 to 1,200 pieces a year. With the support of these world-class facilities, ITU CRC can manufacture rebuilt parts for all Volvo components, including those for the D16 engine. This includes producing rebuild components for rigid and articulated haulers and large excavators. Additionally, ITU actively supports sustainability initiatives and participates in the complete life cycle of machines.
Tomas Kuta, Head of Region Asia, said: “ITU’s new Component Rebuild Center reflects the company’s commitment to excellence and demonstrates its alignment with our values. We want to congratulate the whole team on this fantastic new facility. The CRC will substantially boost our aftermarket business in Indonesia and will give more customers access to rebuilt components, for greater circularity. This is another step forward in delivering increased overall sustainability from our Asian operations.”
Volvo CE is committed to the group-wide Science Based Targets Initiative (SBTi), which prioritizes efficient resource utilization through a comprehensive ‘reuse, reduce, remanufacture and recycle’ approach.
By implementing this framework, we aim to significantly decrease our carbon footprint by actively reducing carbon levels. These ambitions work in line with the group-wide target to increase its remanufacturing business by 60% between 2018 and 2025 as part of the group-wide commitment to creating a more sustainable future for the industry.
