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Eco Manufacturing Centre

Our Eco Manufacturing Centre in action.

The Fuji Xerox Australia Eco Manufacturing Centre is the Fuji Xerox Asia-Pacific hub for the remanufacture of complex sub-assemblies. It is a multi-award-winning, state-of-the-art engineering facility for the remanufacture of parts removed from equipment during service. Since it opened in 2000 the core activities of the Zetland-based centre in Sydney have shifted to more complex remanufacture programs, reflecting its unique expertise. The more labour intensive aspects of the centre’s operations, such as toner cartridge remanufacture, have moved to our Asia Pacific Integrated Recycling Centre in Thailand.

A state-of-the-art facility employing 75 people, the centre has the capacity to remanufacture used parts and components for Fuji Xerox’s operations in Australia and to export remanufacture programs for associated companies in the Asia-Pacific region.

Remanufactured Fuji Xerox parts and sub-assemblies significantly reduce the costs of our customer support organisation. By exporting remanufactured products, other operating companies in the region can also benefit from increased profitability. Although we have been exporting, a constraint on activities has been the reliance by our remanufacturing operations on the supply of used parts from the other operating companies. The major problem is that operating companies are not collecting sufficient numbers of parts that can be remanufactured.

During the year under review, 197,550 parts and sub-assemblies were remanufactured, which was below our target of 245,233 items.* This is due to a decline in demand for remanufactured parts, which can in turn be explained by their increased reliability during service. A stronger Australian dollar has had the effect of lowering export demand and at the same time made many OEM components cheaper. This has only marginally affected the costs of remanufacture in Australia of comparable parts to the extent that local parts are not competitive with imported parts. The centre’s 11/12 goal is to remanufacture 245,233 items. In 10/11 the centre achieved a saving of $5.5 million versus the cost of Xerox and Fuji Xerox supplied alternate parts. This was below our target of $6.7 million. Savings would have been higher without currency fluctuations. These lowered the price of imported products and made remanufactured items less competitive.

In 11/12 we will make efforts to hit our target of $6.7M by:

  • focusing on high quantity high-savings margin products
  • increasing effort to retrieve of used parts that can be remanufactured
  • more focus on export, assisting other operating companies to collect used parts for remanufacturing

The centre’s work developing and implementing remanufacture programs for Fuji Xerox parts and sub-assemblies and Xerox origin products has continued. However we failed to meet our target of 50 new remanufacture programs because of reduced resourcing as we prepared for the move. In 11/12 we expect our capacity to design new remanufacture programs will be impacted by our relocation to a new facility.

*This result and target includes third party parts and subassemblies.

New remanufacturing programs Savings achieved Total parts remanufactured
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New Green Star facility

In 11/12 the centre will be relocated to a new Green Star accredited facility in Rosehill, Sydney.

We will seek 5-star accreditation for office space and 4-star accreditation for the industrial parts of its operations. Preparations for this relocation have been a significant draw on the centre’s resources in the year under review.