< PreviousT he Goodyear Tire & Rubber Company has unveiled a demonstration tyre comprised of 90% sustainable-materials. This demonstration tyre has passed all applicable regulatory testing as well as Goodyear’s internal testing. As per the company, a sustainable material is defi ned as a bio-based/renewable, recycled material or one that may be produced using or contributing to other sustainable practices for resource conservation and/or emissions reductions including mass-balance materials. The 90% sustainable-material tyre has been developed as a demonstration tyre, which means Goodyear has proven its ability to produce a consumer tyre with a high-level of sustainable-material content. This demonstration tyre also tested to have lower rolling resistance when compared to the reference tyre, made with traditional materials. Lower rolling resistance means this demonstration tyre has the potential to off er better fuel savings and carbon footprint reduction. In addition, after announcing the capability GOODYEAR UNVEILS 90% SUSTAINABLE- MATERIAL DEMONSTRATION TYRE to demonstrate a 70% sustainable-material tyre in January 2022, Goodyear, working with its supply base, plans to introduce a tyre with up to 70% sustainable-material content in 2023 as a limited run. Bringing a 90% sustainable-material tyre to market will require further collaboration with the company’s supply base to identify the scale necessary for these innovative materials to produce that specifi c tyre at high volumes. “We continue to make progress toward our goal of introducing the fi rst 100% sustainable- material tyre in the industry by 2030,” said Chris Helsel, senior vice president, global operations and chief technology offi cer. “The past year was a pivotal one toward achieving this goal. We researched new technologies, identifi ed opportunities for further collaboration and utilized our team’s tenacity to not only demonstrate our capabilities to produce a 90% sustainable-material tyre, but to also produce a tyre with up to 70% sustainable-material content this year. Our team continues to showcase its innovation and commitment to building a better future.” As per the company, the 90% sustainable- material demonstration tyre has 17 Ingredients across 12 diff erent tyre components which includes CARBON BLACK Carbon black, which is included in tyres for compound reinforcement and to help increase their life, has traditionally been made by burning various types of petroleum products. Goodyear’s 90% sustainable-material demonstration tyre features four diff erent types of carbon black that are produced from methane, carbon dioxide, plant-based oil and end-of-life tyre pyrolysis oil feedstocks. These carbon black technologies target reduced carbon emissions, circularity and the use of bio-based carbons, while still delivering on performance. SOYBEAN The use of soybean oil in this demonstration tyre helps keep the tyre’s rubber compound pliable in changing temperatures. Soybean oil is a bio-based resource that helps to reduce Goodyear’s use of petroleum-based products. The company also announced the plans to produce and sell a tyre with up to 70% sustainable-material content in 2023. SUSTAINABILITY INITIATIVE 30 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023 The demonstration tyre has 17 ingredients across 12 components Goodyear has been an industry leader in tyre segment for more than 100 years While nearly 100% of soy protein is used in food/animal feed applications, a signifi cant surplus of oil is left over and available for use in industrial applications. SILICA Silica is an ingredient often used in tyres to help improve grip and reduce fuel consumption. This demonstration tyre includes a high-quality silica produced from rice husk waste residue (RHA silica), a byproduct of rice processing that is often discarded and put into landfi lls. POLYESTER Polyester is recycled from post-consumer bottles by reverting the polyester into base chemicals and reforming them into technical grade polyester used in tyre cords. BIO-RENEWABLE PINE TREE RESINS Resins are used to help improve and enhance tyre traction performance. In this demonstration tyre, traditional petroleum- based resins are replaced with bio-renewable pine tree resins. STEEL WITH HIGH-RECYCLED CONTENT Bead wire and steel cords provide reinforcement in the structure of a radial tyre. This demonstration tyre uses bead wire and steel cord from steel with high-recycled content, which is produced using the electric arc furnace (EAF) process. T The utilisation of the EAF process allows for steel to be produced with reduced energy use and higher recycled content. The EAF process has the potential for lower greenhouse gas emissions in comparison with steel produced using a blast furnace. ISCC certifi ed mass balance polymers from bio- and bio-circular feedstock are also included in this tyre. The shift to sustainable materials is evident in some of Goodyear’s current product lines. Today, eight product lines, and some racing tyres, include soybean oil. In addition, Goodyear has more than doubled its use of RHA silica in its product lines since 2018. With the introduction of a tyre with up to 70% sustainable-material content, Goodyear is demonstrating tangible commitment with in- market solutions to building a better future. Goodyear is one of the world’s largest tyre companies. It employs about 72,000 people and manufactures its products in 57 facilities in 23 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. SUSTAINABILITY INITIATIVE 31 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023placed pressure on every part of the supply chain industry. Volvo Group see that fully autonomous trucking transports are key to provide additional capacity, better safety and improved effi ciency but also support drivers in tiresome routes, the group said in a release. “Partnerships and investments are key to commercialising autonomous transport solutions at scale. We welcome Volvo Group’s decision to invest in companies like Waabi who are building the new transport ecosystem,” said Nils Jaeger, President of Volvo Autonomous Solutions. Waabi is developing next-generation artifi cial intelligence technology to solve autonomy at scale. The company recently unveiled the Waabi Driver, its core autonomous trucking solution, designed for large-scale commercialisation and safe deployment. This solution is complemented by Waabi World, a scalable high-quality simulator, exposing the Waabi Driver to the vast diversity of scenarios needed to hone its driving skills and paving the way to widespread adoption of autonomous trucking. “Autonomy will one day transform trucking and logistics, but the self-driving industry has not solved this challenge, yet,” said Raquel Urtasun, Founder and CEO of Waabi. He said, “Our AI-fi rst approach is the key to unlocking this reality at scale. Volvo Group’s investment in Waabi marks the next step in our journey, particularly around our shared commitment to safety.” Volvo Group Venture Capital was founded in 1997 with an aim to invest in venture companies. The group strives to drive transformation by facilitating the creation of new services and solutions, and cooperation between start-ups and the Volvo Group. The market trends shaping the future of transportation and the strategic priorities of the Volvo Group defi ne the investment focus areas: logistics services, site solutions, electrifi cation, and climate tech. V olvo Group Venture Capital AB has invested in the Canadian company Waabi Innovation Inc, developing the next generation of autonomous trucking technology. The investment highlights the companies’ shared commitment to redefi ne the way we move goods and to accelerate the deployment of future transport solutions. “The company Waabi is using advanced artifi cial intelligence technology to test, assess skills, and ultimately teach a virtual driver to maneuver safely and effi ciently in a commercial-ready autonomous trucking solution. We are impressed by what they have accomplished and see that Volvo Group can add considerable strategic value to the development of their business. We are currently exploring ways to cooperate,” said, Martin Witt, president of Volvo Group Venture Capital. Freight movement is rising, with the trucking industry moving the vast majority of the goods. Accommodating this growth has VOLVO GROUP VENTURE CAPITAL AB INVESTS IN WAABI, DEVELOPING THE NEXT GENERATION OF AUTONOMOUS TRUCKING TECHNOLOGY TRUCKING 32 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023GREAT WALL MOTOR LAUNCHES ITS FIRST REGIONAL PARTS DISTRIBUTION CENTRE FOR THE MIDDLE EAST C hinese auto manufacturer Great Wall Motor (GWM) has offi cially launched its fi rst regional parts distribution centre for the Middle East region in the UAE. With this launch, GWM, supported by Swaidan Trading, the exclusive dealer of GWM in the UAE, aims to enhance its after-sales services and further fulfi l the needs of its customers in 22 markets across the Middle East and North Africa, GWM wrote in a statement. As part of GWM’s broader service excellence plan, the launch seeks to shorten the logistics cycle while enriching the parts range. The plan, launched six months ago, elevates the satisfaction rate of end-users and dealers and expects to achieve much more, the statement noted. During the launch ceremony, GWM held fruitful discussions with its dealer representatives from the Middle East region. The discussions included a wide range of topics, focusing on improving after-sales service and developing a top-notch system for parts management. The regional parts distribution centre aims to optimise parts supply, response speed and parts-related operations, as well as accelerate the improvement of the network layout in the service system. This launch milestone proves Great Wall Motor’s commitment to expanding its presence further in the Middle East market, bolstered by the launch of its fi rst Middle East OEM offi ce in Dubai in March of 2022. Commenting on the development, Tony Sun, Managing Director of Great Wall Motor Middle East said, “The Middle East Parts Distribution Centre marks a fi rst milestone towards achieving our strategic expansion objectives of Great Wall Motor’s services in this region. “Developing our after-sales service system brings Middle East customers an enhanced experience, which is exactly the people- oriented service spirit that Great Wall Motor has always had. We expect that this strategic cooperation with our partners will push GWM forward.” GWM has recently launched a number of new products in the Middle East, such as the TANK 300, Haval Dargo and Poer King Kong. Post a gradual steady enhancement of the supply capacity of its parts centre, the Middle East market will soon witness the introduction of GWM’s zero emissions brand “ORA”, as well as HEV products from both the Haval and TANK brands. Founded in 1958 by two brothers, the Saeed & Mohammed Al Naboodah Group is among the most well-respected family company names in the UAE. Employing around 10,000 people of almost 50 diff erent nationalities, the Al Naboodah Group’s core business focus covers civil engineering, building and MEP, in addition to representing a diverse portfolio of global brands in the automotive, transportation, travel, electrical, logistics, agriculture, smart cities, real estate and renewable energy sectors. 33 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023 SUPPLIERSBRACING FOR GROWTH T he global automotive and equipment industry is hoping for a recovery in 2023, thus leaving behind one of its most challenging periods in recent years. According to industry estimates, because of the prolonged and stringent lockdown in China, the world’s largest producer of semiconductor chips, global automotive production suff ered adversely and vehicle sales across the world fell by 4.5 million vehicles. Over the past three years, the global automotive industry witnessed some unprecedented developments ranging from government-implemented movement restrictions across the world to curb the Covid-19 pandemic, disruption of global supply chains, extreme volatility in global commodity prices, and a sharp rise in interest rates by various central banks, which could adversely impact consumer demands for almost all manufacturing products. Besides this, tensions in Asia-Pacifi c, a war in Eastern Europe, and fears of a global economic slowdown have created a climate of uncertainty and hesitation. Besides this, shortages from microchips to labour are going to aff ect almost every touchpoint along the automotive supply chain. According to a report by Bloomberg, following months of plant interruptions due to component shortages, the order backlog is keeping factories busy even as the global economy shows symptoms of faltering. The global chip shortage, which dominated the most part of the year 2022, could improve from mid-year onwards as more supplies become available, a top semiconductor analyst from the US bank JPMorgan said in a report. The US investment bank is recommending investors pursue longer-term trends in the semiconductor space in areas like high-end computing globally as well as less-advanced Chip shortages have impacted the sale and production of buses, truck and other heavy vehicles in 2022 Electric vehicles are set to gain popularity and their sales in 2023 is expected to register a double digit growth this year PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023 34 INDUSTRY OUTLOOKtechnologies in China. According to a report by AFP citing an industry group report, new vehicle registrations in Europe dropped to their lowest level since 1993 last year as component shortages continued to hinder automakers. Despite an uptick in sales since August, the overall number of EU registrations fell 4.6% to 9.3 million, a level last seen three decades ago, the European Automobile Manufacturers' Association (EAMA)said. It marks a third diffi cult year for the industry since the factory and showroom closures during the Covid-19 outbreak in 2021 and the resulting supply bottlenecks – not least for key semiconductors – that persisted even as the pandemic eased, (EAMA) said while adding that Germany was the only major European market that saw growth last year, at 1.1%, while Italy registrations plunged 9.7%, France 7.8%, and Spain 5.4%. Automotive companies across the world are researching for new electric powered engines. PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023 35 INDUSTRY OUTLOOKThe German auto industry association has cautioned that it is expecting only a mild recovery for the domestic car market this year, even as supply chain bottlenecks are expected to ease, the report said. HEAVY CONSTRUCTION EQUIPMENT Due to the COVID-19 pandemic, the global Heavy Construction Equipment market size is estimated to be worth $ 132 billion in 2023 and is forecast to a readjusted size of $177.7 billion by 2028 with a CAGR of 5.7% during the review period, according to a market research report by IMARC. Heavy construction equipment refers to large-scale machinery used for heavy operations and tasks, such as material handling, tunneling, excavation, recycling, waste management, and lifting. Tippers, dumpers, motor graders, dozers, loaders, and excavators are commonly used heavy construction equipment, the report said. “These machines assist in increasing the rate of output through work progress, reducing the need for manpower, enhancing effi ciency, speed, and safety on a larger scale, and reducing the time limit of processes and overall construction costs,” it added. The report predicted that the signifi cant growth in the construction industry across the globe is creating a positive outlook for the market. Mourad Hedna, president of UD Trucks MEENA, said that with the easing chip shortage situation the global heavy vehicles market is expected to recover in 2023. “The production of all automotive components is likely to increase in 2023, but there is a still problem related to logistics bottlenecks, and we are concerned that it could impact global sales in 2023,” Hedna said. He explained that over the past three years, global logistics capacity hasn’t expanded at all. And if there is a recovery in demand in the US and Europe, it could squeeze global supplies which could in turn put pressure on all commodities thereby impacting global sales. Volality in crude prices has made electric vehilces more economical for consumers in Asia Battery operated heavy vehicles are also gaining popularity across the world. PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023 36 INDUSTRY OUTLOOKELECTRIC VEHICLES TO GAIN POPULARITY Nearly all major auto companies have announced an increased focus on electric vehicles. Concerns related to city pollution, volatility in fossil fuel prices, and improvements in technology are some of the factors contributing to the popularity of electric vehicles. A report by Wood Mackenzie on electric reveals that the electric vehicle (EV) market went from strength to strength in 2022 – despite considerable supply chain challenges. The war in Ukraine and Covid-related disruptions in China restricted EV production for several months in the fi rst half of the year. However, sales rebounded with more than a million EVs sold in each of the fi nal four months of the year. “We are set for another interesting year as pressure builds to secure supply chains and develop next-generation technologies in a low- margin industry,” the Wood Mackenzie report said while adding that the EV sales are likely to maintain their upward trajectory in 2023. The report, however, expresses, concerns that the supply chain may not be able to keep pace with the demand growth and urged the governments to take steps to boost security and sustainability of the value chain. According to a report by Reuters, the automobile industry is pouring more than $1 trillion into a revolutionary shift from combustion engines to electric vehicles guided by software. “From Detroit to Shanghai, automakers and government policymakers have embraced the promise of electric vehicles to provide cleaner, safer transportation. European countries and California have set 2035 as the deadline for ending sales of new combustion passenger vehicles,” the report said. On challenges, the report said barriers to the EV adoption includes dearth of public fast- charging infrastructure, and the rising cost of EV batteries, driven by shortages of key materials and uncertainty over government subsidies that have buoyed EV purchases in major markets including the United States, China and Europe. CHINA OUTLOOK After a very challenging 2022, Goldman Sachs Research economists expect China’s GDP growth to accelerate from 3.0% this year to 4.5% next year on the back of China’s potential exit from its zero-Covid policy, which they assume will start shortly after the “Two Sessions” in March. China’s reopening would imply a strong consumption rebound, fi rming core infl ation, and gradually normalising cyclical policies in 2023. According to economists, China still has some very substantial challenges. None of the demographic challenges or property market challenges that we've repeatedly discussed and that have been repeatedly discussed in markets. None of that is changing. But in the near term, it looks like it's going to be quite a bit fi rmer. According to the Wood Mackenzie report, China offi cially ended its decade-long incentives for electrifi ed transport in 2022. The country reached its goal of 25% new energy vehicle penetration (a term used in China for plug-in EVs) three years ahead of the expected schedule, leading to the earlier-than-expected end of direct government support for buyers. THE WAY FORWARD Nearly all major global auto majors have announced that they are going to introduce new electric vehicles in 2023 but there are still concerns about key battery materials shortages, lack of charging facilities, and lack of support from authorities, which could derail growth in the short-to-medium term. Infrastructure bottlnecks such as lack of charging facilities is a major hurdle in the growth of electric vehicles PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023 37 INDUSTRY OUTLOOKJ apanese engineering major Hitachi Construction Machinery Group (HCMG) will focus more on sustainable solutions as part of their longterm strategy to contribute more towards the society. In a sustainability message posted on their website HCMG president and executive offi cer, CEO Kotaro Hirano said, “We are always aware that we are an essential business and aim to realise a sustainable society while contributing to the solution of global social issues.” Hirano explained, “Our goal is not just to produce or sell machineries but continue to supply the optimal machineries and solutions in order to help our customers around the world who work with construction machinery to develop countries and regions and maintain production and social activities.” He said, “As a result, roads, waterways and towns will be built, which will prosper HITACHI TO STRIVE FOR STRATEGIC, SUSTAINABLE SOLUTIONS the country and enrich people’s lives.This is the ultimate corporate vision of the Hitachi Construction Machinery Group. We not only develop and produce construction machinery, but also provide services and rental machinery to our customers even after the delivery of products in the value chain business.” GROWTH IN OPERATION In his new year greeting message to employees, Hirano revealed that HCMG’s business launch in the Americas is progressing even more favorably than they anticipated. “Going forward, we will work with all Hitachi Construction Machinery Group companies to make a success of our INSIGHT 38 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023independent expansion in the Americas based on the new capital structure,” Hirano said while adding that company’s performance in the year 2022 has been robust. He said, “With the exception of China, Russia and the CIS, the market for construction machinery continued to show robust demand last year, and customers continued to show willingness to invest in the mining market on the back of high resource prices.” HCMG aims to increase the the share of revenue from the value chain business to 50% or more by the end of fi scal 2022. Hirano in their company’s sustainability report for the year 2022 explained that the company has been pursuing a policy of strengthening its value chain business since 2016. Every year, the group publishes an integrated report to provide stakeholders with a deeper understanding of our medium- to long-term value creation strategy and ESG (Environmental, Social, and Governance) initiatives. The 2022 edition of the Hitachi Construction Machinery Group’s integrated report on sustainability is structured around its CEO message, with an awareness of sustainable corporate value creation from both fi nancial and non-fi nancial perspectives, including future developments in the North, Central, and South America business and the outlook due to the organisational change to a business unit system. “Our goal is to increase the share of revenue from the value chain business to 50%,” Hirano said in the report while adding that the expanding their business in North, Central, and South America will be a critical part of achieving this goal. CHALLENGES According to Hirano, one of the major changes in their group is the start of full-scale independent expansion into the North, Central, and South American markets in fi scal 2021. The North, Central, and South America market is the world’s largest for construction machinery, accounting for about 40% of global demand. This market is also the world’s largest for mining machinery in operation. For example, the European market is dominated by construction and small construction machinery used in public works projects, as well as in the construction of buildings, homes and other structures. The region only has a limited number of mining machines in operation. Australia, on the contrary, is a market forlarge mining machines used in resource mining and other applications. In comparison, North, Central, and South America represents a large-scale market active for all types of construction and mining machinery. He reveaed that the group has not performed well in North, Central, and South America historically. He said, in the beginning, customers were satisfi ed as long as their equipment performed well and was of good quality. “But as customer needs shifted dramatically from products to services, we were faced with the increasing requirement to identify customer needs on our own, providing products,” he said. LEVERAGING ON STRENGTH Currently, Hitachi Construction Machinery has approximately 389,000 units of construction machinery in operation in more than 100 countries around the world. Extending service lives of these machines will enable many of these machines to remain in active use and will provide additional business opportunity to the group. Besides this, this initiative will also help the Japanese major to push its circular economy initiatives. Hirano explained that leveraging on the strengths as a manufacturer, the company can not only repair the equipment but also improve their functionality. Hirano said, “In this way, construction machinery that would otherwise be discarded after 10 years can be used for 15 years.” He believes this will provide an opportunity to continue services to their customers during that time. In addition to the parts remanufacturing the company performed in the past, in fi scal 2021, the company also started a new initiative to take hydraulic excavators submerged in typhoon-related fl oods back from customers and refurbish the entire chassis of the machines. “This is a very interesting idea, but such ideas can only arise if we keep our ears to the ground and in close proximity to the front lines of our business,” he said. “These activities will lead to more value chains, allowing us to continue providing a wide range of solutions and services to our customers,” he concluded. Kotaro Hirano, CEO, president, executive offi cer and Director, Hitachi Construction Machinery INSIGHT 39 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comFEBRUARY 2023Next >