Fossil Free Steel in the Truck Market – DAF Trucks N.V.

 Overview

Company Description

DAF Trucks N.V. in Eindhoven is part of the PACCAR Inc. which is one of the biggest global players in the heavy duty truck industry. The company develops, sells and produces on- and offroad trucks in the light, medium and heavy duty segment. The known truck brands of PACCAR are Kenworth, Peterbilt and DAF.

Project Description

The industrialization of heavy duty trucks and its supply chain requires high amounts of energy. It is todays challenge and obligation to reduce the amount of energy and use carbon free energy wherever possible.

 Fossil free steel is being developed by all big steelmakers in the world. Fossil free steel is made by replacing carbon containing fuel by hydrogen in the production process. Large investments are needed to make this transition in the industry. The project investigated the impact on the supply chain and the need for it at manufacturers of steel and trucks.

Goals of the Project

Map the Impact of Fossil free Steel on Truck market

Deliverables

Create a business model for green steel in the truck supply chain, delivering value to OEM and end customer.

 It should include

• Investments required per supplier to enhance the required energy transition.
• Cost increase for the manufacturer
• Potential value created for the truck manufacturer

Furthermore,

• Identify Risks for the truck market supply chain in relation to supply continuity, costs and legislation
• Map current steel suppliers on energy consumption,  Long Term Agreements, Future Investment requirements to identify specific groups of suppliers and their risk mitigation plans accordingly.

Essential Student Knowledge

Background:

Mechanical Engineering and or Industrial Engineering, Sustainable Energy Technology, Chemistry, Supply Chain Management

More information: escf@tue.nl