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TECHNOLOGY 25
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principles of open innovation, as such transitions cannot be
achieved by isolated actors. Industrial Wood Products
One of the strategies within the circular economy concept
is remanufacturing.
Remanufacturing is an industrial process that restores
the end-of -life products to their original functionality and

condition. The interest in remanufacturing has evolved across
various sectors, including electrical products, heavy equipment,
automotive, medical equipment and white goods.
Despite its potential, the adoption of remanufacturing
practices varies significantly across sectors. While sectors such
as automotive and electrical products have begun embracing information, coordinating material flows, and co developing
remanufacturing, others, like the furniture sector, are still in circular solutions, conditions that reflect the collaborative, cross
the early stages of adoption remanufacturing. boundary knowledge flows emphasised in open innovation
The furniture sector, which frequently involves wood-based scholarship.

products, presents significant opportunities for remanufacturing The complexity of the industry affects its adaptability to
to extend product lifecycles and reduce the use of virgin circular practices.
materials. The furniture sector comprises a wide range of actors,
When furniture is replaced due to wear, damage, or including subcontractors, original producers, and retailers.
outdated design, the majority is discarded. For example, Consumers and end-users are also highly diverse as furniture
of the 10.78 million tonnes of total annual furniture waste is used by private consumers and organisations, and public
generated in Europe, 80–90 percent is either incinerated or sectors such as schools and government agencies.

ends up in landfill. Unlike the relatively straightforward and well-established
A sustainable alternative would be to extend the lifespan linear value chain, circular value flows are inherently more
or increase the number of lifecycles and retain the value complex and less thoroughly understood, particularly due to
of the product by remanufacturing. However, the circular the multiple actors involved and the dynamic nature of material
transition is a challenging process that requires an expansion recovery, reuse, and redistribution processes.
of the producer’s responsibility while in parallel considering Moreover, the characteristics of the original manufacturing
policies and regulations, business models and technological enterprises further contribute to this complexity.
developments. In Europe, the furniture industry is characterised as a dynamic
When companies adopt remanufacturing practices, the and labour-intensive sector, predominantly composed of small

companies are often required to rethink their traditional linear and medium-sized enterprises (SMEs) and micro-enterprises.
business models and shift toward new circular business models In Sweden, the industry reflects a similar structure, with
that prioritise product life extension. most original manufacturers being SMEs that primarily operate
This transformation involves innovative approaches to value in the business-to-business (B2B) market by selling their
creation, pricing, customer engagement, and services. Circular products through retailers.
transitions also require strong collaboration and information This stands in contrast to the large multinational furniture
exchange across the value chain, including sharing product company IKEA, which focuses on a business-to-consumer (B2C)