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The world’s ambition to electrify transport, expand renewable capacity, and build resilient cities rests on an accelerating demand for metals and minerals. Extraction is moving deeper underground, further away from infrastructure, and into harsher environments, while scrutiny on environmental and social impact intensifies.

Equipment manufacturers and service providers must enable miners and infrastructure players to increase productivity and uptime, while simultaneously reducing lifecycle emissions, resource use, and safety risks. At the same time, customers agree that sustainability initiatives cannot be decoupled from profitability and performance.

At Sustainability in Service 2025 – Power of 50, Maria Tutumlu of Epiroc highlighted how this challenge is being addressed, providing a concrete view of what it means to operationalise circular service models at scale within a heavy, safety‑critical, asset‑intensive environment.

The Shift: From Selling Machines to Extending Their Lives

Across heavy industry, service is a core business driver. For some manufacturers, aftermarket services already represent the largest share of revenue and, more importantly, the most attractive margins. Circularity is now being integrated directly into this service engine.

The emerging approach is to move from a transactional model, selling new machines and spare parts, to one based on:

• Extending asset life instead of replacing equipment;  
• Reusing and remanufacturing components instead of relying solely on new ones;  
• Combining technical and commercial models that protect both uptime and profitability.  

Customers increasingly want to avoid running assets to failure. They are under pressure to maximise the utilisation and value of each machine over its life, especially in cycles of high commodity prices where every hour of lost production equals significant foregone revenue.

Circular service offerings must facilitate more productivity, longer life cycle, lower CO2 footprint, and better economics over time.

Building a Circular Services Portfolio: From Fragmented Initiatives to a Coherent Strategy

Many industrial players have offered repairs, rebuilds, and component exchanges for years. What is changing is the deliberate packaging of these activities into a structured circular services portfolio, supported from the highest levels of the organisation.

Bringing previously standalone offerings under a unified circular services umbrella creates several advantages:

• Strategic visibility: Circularity moves from local workshop practice to a defined business strategy backed by leadership.  
• Cross‑leveraging: Services such as midlife overhauls, component remanufacturing, safety upgrades, and training can be combined into higher‑value, integrated solutions.  
• Scalable processes: Standardisation of methods, quality, pricing, and digital tracking becomes feasible across multiple regions and workshops.  

Epiroc’s circular portfolio spans midlife services, custom engineering, battery conversions (diesel‑to‑electric), circular components, safety solutions, tools and training, and end‑of‑life recycling. This creates a full loop of life extension, performance upgrades, safe operation, and responsible end‑of‑life handling.

The strategic intent is to lead a safe, circular, and productive future for mining and infrastructure by maximising reuse and minimising consumption of virgin material, without sacrificing uptime or financial performance.

Midlife Services: Industrial Refurbishment as a Core Circular Lever

One of the clearest examples of circularity embedded in service is the concept of midlife services, comprehensive machine rebuilds designed to restore equipment to mint condition and extend operational life.

• As machines age, their productivity declines and maintenance costs rise.  
• Unplanned shutdowns or frequent interventions erode availability and increase total cost of ownership.  
• Instead of multiple shorter stoppages, a planned, one‑time major rebuild can return the asset to near‑new condition and unlock several more years of productive operation.  

Over time, midlife services evolve beyond a single event. Some assets can undergo several midlife interventions over their lifetime, followed by deeper rebuilds that effectively provide a second life to machines that might otherwise be scrapped.

This approach supports circularity in several ways:

• Steel reuse: Up to 85% of the machine’s steel can be reused, depending on condition and past maintenance. The structure and many components are assessed, remanufactured, or repaired rather than replaced outright.  
• Reduced virgin material demand: Only parts that cannot be safely or reliably restored are replaced with new components.  
• CO2 reduction: By reusing the bulk of the machine rather than manufacturing an entirely new unit, significant embodied CO2 is avoided.  

From an economic standpoint, the value equation is carefully managed. Customers will not pay more for a rebuilt machine than for a new one, so the pricing is benchmarked against the cost of a new asset and tiered based on scope:

• Restore to original specification;  
• Add optional features; 
• Integrate the latest technology and automation upgrades.  

If processes are made lean and repeatable, and if planning is done well, such midlife programmes can be highly profitable. They also generate predictable future parts and service sales, as the renewed machine continues to operate over an extended horizon.

Protecting Uptime: Circularity Paired with Flexible Asset Access

One practical barrier to large refurbishment campaigns is downtime. In high‑price commodity environments, operators are reluctant to take assets out of production, even temporarily.

To remove that obstacle, circular service models are increasingly combined with flexible asset access, such as rental fleets. While a customer’s machine is undergoing midlife service, a rental unit is provided to avoid production loss. This ensures that:

• Circular refurbishment does not come at the expense of current revenue.  
• The service provider unlocks an additional recurring revenue stream through rentals.  
• The customer experiences a seamless continuity of operations.  

This combination of circular refurbishment and asset‑as‑a‑service access illustrates how business model innovation is just as important as technical capabilities in scaling circular solutions.

Circular Components: Scaling Reuse One Assembly at a Time

While full machine rebuilds are highly visible, most circular value in industrial equipment is created at the component level. Circular components, remanufactured, serviced, and reintroduced into the field, sit at the heart of a scalable circular economy in heavy industry.

A structured component programme typically includes several commercial models:

• Remanufactured components sold at a fixed price, contingent on the return of an old core;  
• Service exchange with variable pricing depending on core condition;  
• Repair‑and‑return, where the customer retains asset ownership and pays only for the repair;  
• New‑for‑old, where the customer buys a new component and returns the used one for a discount.  

In all cases, the technical process is similar. A used component is collected, assessed, disassembled, cleaned, and reassembled with repaired or new sub‑components as required to meet mint quality.

The critical enabler is the consistent return of cores. Without a steady inflow of used components, the circular system breaks down. To secure that flow:

• Commercial incentives (discounts, flexible pricing) are used to encourage core return.  
• Clear conditions are defined, for example, customers who do not return a core pay a higher new price.  
• Logistics and workshop networks are organised around capturing components as close to the point of use as possible.  

When component remanufacturing is scaled, it positions the service provider as a one‑stop shop. The same axle, hydraulic pump, or rotary head used on its own machines can often be repaired and supplied for other brands, expanding the addressable aftermarket and diversifying revenue without additional R&D investment.

Designing the Process: Quality, Efficiency, and Localisation

Operationalising a circular component business is not a simple extension of traditional service. It demands deliberate investments and process design in several areas.

1. Lean and standardised processes  

Remanufactured components must meet tightly controlled quality expectations. This requires:

• Standard work instructions and repair procedures;  
• Access to technical specifications and test criteria;  
• Test benches and specialised tools where needed.  

Initially, the cost of setting up these capabilities may exceed early returns. Over time, as volumes increase and workflows are optimised, the return on investment improves significantly.

2. Local workshops, global standards  

Heavy equipment often operates in remote regions and countries with complex logistics and customs regimes. Shipping components or machines across borders for repair adds time, cost, and regulatory friction.

As a result, there is a shift from global to regional and local repair models. Workshops are established within the same country or region as the customers, and in some cases directly on or near customer sites. This approach:

• Reduces customs and legal complications connected to cross‑border movements;  
• Cuts lead times and transportation emissions;  
• Increases responsiveness and service reliability.  

Global standards and processes are still applied, but execution is rooted locally.

3. Digital tracking and core management  

Manual tracking of cores and work orders is inefficient and error‑prone. Digital systems are therefore an important backbone of circular operations, enabling:

• Traceability of each component through its lifecycle;  
• Visibility of where cores are, which customers hold them, and when returns are due;  
• Quality documentation and audit trails for each repair.  

4. Supplier collaboration and vertical integration  

Strong relationships with component suppliers or direct ownership of key component capabilities are critical. Original design data, repair instructions, and test specifications are needed to ensure remanufactured components genuinely meet mint standards.

In some cases, acquiring specialised repair businesses allows a manufacturer to internalise strategic capabilities, expand reman offering, or pre‑empt competitive threats in its installed base.

Making Circularity a Value Driver: From Compliance to Competitive Advantage

Circular services must compete not only with new equipment sales but also with independent repair shops and third‑party service providers. Addressing this competitive landscape requires clarity on the distinctive value delivered.

Several levers stand out:

• Brand and assurance: Being the original equipment manufacturer offers a trust advantage, access to genuine specifications, validated repair methods, and extended warranties.  
• Integrated safety and technology upgrades: Rebuilds and component repairs can be packaged with safety enhancements, automation, and digitalisation upgrades, going beyond mere restoration.  
• Transparent sustainability impact: Quantifying and communicating the environmental benefit transforms circularity from a soft narrative into a measurable performance metric.  

Steel certificates or similar documentation quantify:

• The percentage of steel and material reused in a specific component or machine rebuild;  
• The corresponding reduction in CO2 emissions achieved versus manufacturing new equipment.

These reports not only demonstrate process quality via before/after documentation and scope descriptions, but also provide customers with tangible sustainability data that can feed into their own ESG reporting and stakeholder communications.

Managing Internal Tensions: Cannibalisation and Portfolio Balance

A common concern when scaling circular offerings is the fear of cannibalising new equipment sales. Extending the life of existing machines can seem, on the surface, to be in conflict with selling more new units.

Experience from the field, however, suggests that offering both options often expands the overall opportunity. Customers expect a full portfolio. Some budget and operational constraints favour new investments. Others favour life extension, upgrades, or conversions.  

Customers often opt for a mix. For example, purchasing multiple new machines while simultaneously investing in battery conversions or rebuilds for part of their existing fleet. In this way, circular offerings complement rather than replace capex, and they deepen long‑term customer relationships.

At the same time, the margin dynamics are shifting. While capex margins tend to be under pressure, service and circular offerings often generate higher profitability, recurring revenue, and greater stickiness in customer relationships. For organisations willing to rethink performance metrics and incentives, circular models can therefore become a core profit and differentiation engine rather than a side activity.

Implications for Industrial Leaders

For manufacturers and service organisations in asset‑intensive sectors, the emerging blueprint for circular services points to several strategic imperatives:

• Treat circularity as a business model, not a side initiative. Packaging existing services into a coherent circular portfolio clarifies strategy and unlocks synergies.  
• Design for lifecycle value. Focus on extending asset life, reducing lifecycle cost, and integrating upgrades, not just on initial sale.  
• Build local execution capabilities. Circularity depends on proximity to local workshops, regional logistics, and country‑level competence anchored in global standards.  
• Invest early in processes and digital backbone. Standardised methods, digital core tracking, and quality assurance are non‑negotiable for scale and trust.  
• Quantify and communicate impact. Translate material reuse and CO2 reductions into clear value propositions and reporting tools for customers.  
• Embrace complementarity, not conflict. Circular solutions and capex sales can coexist and reinforce each other when incentivised and positioned correctly.  

Circular Services as a Catalyst for Industrial Transformation

The energy transition and global urbanisation are accelerating demand for metals and minerals, even as environmental and social constraints tighten. Industrial players supplying the mines, tunnels, and infrastructure of the future cannot rely on linear business models built solely on selling more machines.

Circular service models are emerging as pragmatic, scalable levers to reconcile growth, sustainability, and profitability. They extend asset lives, reduce material intensity, cut CO2 emissions, and enhance safety and uptime, while building more resilient and profitable service businesses.

For senior decision‑makers, the question is no longer whether circularity matters, but how quickly it can be operationalised at scale, through portfolios, processes, partnerships, and performance metrics that put lifecycle value at the core of industrial strategy.