Volvo Group inks pact with two Chennai firms to source fossil-free parts

Volvo Group partners with city-based suppliers for fossil-free components, aiming to reduce CO2 emissions and achieve climate neutrality by 2040.

Volvo Group has joined hands with two city-based supply chain partners to source fossil-free components from them to reduce CO2 emissions as part of Volvo Group Trucks plan to achieve climate neutral by 2040.

“We have collaborated with two key supply partners – Rane (Madras) Ltd and Madras Engineering Industries Pvt. Ltd., (MEI) and potentially it would result reduction in CO2 emission by 13,000 tonnes annually,” Volvo Group Head of Circularity & Remanufacturing, Mark Bamber said while addressing the press.

In all, the Swedish based firm has tied up with three city-based firms so far. The first one being Brakes India Ltd. during June 2022 for sourcing green castings. In the last two years, it had resulted in reduction of CO2 emission of 1,00,000 tons.

“We are committed to becoming a climate neutral company by 2040 and we began our journey in 2022. It is extremely challenging to find a supply chain partner. Our role is to maximise resources and minimise waste,” he said.

In collaboration with Rane Madras, Volvo Group has developed fossil-free tie rods and linkages, essential components that steer the wheels of Volvo trucks. These products are manufactured using 100% renewable energy and would lower emissions by 600 tons annually.

In the case of MEI, Volvo Group will create fossil-free ferrous castings. They are produced using 100% renewable energy and metallic scrap without virgin materials such as pig iron. Components from both supply partners are set to be introduced in Q1 of 2025.

“The reduction could amount to several thousands tons per year, if implemented across other supply partner, producing similar components,” said Volvo Group Head of Sealings & Suspensions P.U. Mokrane Brahmi.