Toyota Burnaston Factory Transitions to Circular Economy Amid Production Declines

The Toyota factory in Burnaston, situated near Derby, has established itself as a significant manufacturing site, producing over five million cars over nearly 35 years. Recently, however, this facility has begun to face challenges that have led to a significant drop in car production. Last year, the factory managed to produce just 92,000 Corolla petrol-electric hybrid vehicles, which is half the output from a decade ago and a mere one-third of the peak output of 285,000 in 2006.

The decline in production is not attributed to the quality of the vehicles, but rather to ongoing production issues. Since the closure of the factory’s second assembly hall following the global financial crisis, prospects for new product lines have faltered. Initial hopes of expanding into multiple hybrid models or electric vehicles have yet to materialise, leaving the Burnaston factory largely unchanging for over a decade.

With a workforce reduced by a third from its pre-crisis total of 3,500 employees, Burnaston has had to adapt to changing circumstances. In 2022, it repurposed its second assembly hall into a service station that refurbishes second-hand Toyotas and modifies vehicles for different uses, such as police livery or commercial adaptations.

A notable new initiative has emerged in the form of Toyota’s “circular factory,” a modern take on recycling vehicles. Unlike traditional scrapyards, this facility is focused on recovering materials from cars that have reached the end of their life cycle, typically those that are at least 17 years old. Acquired from auction sites, these vehicles undergo a meticulous process of disassembly.

The benefits of this operation extend beyond environmental sustainability. By retrieving valuable metals, such as aluminium from engine blocks and alloy wheels, the factory can significantly reduce manufacturing costs. Valuable components, including catalytic converters rich in platinum group metals, are extracted and have become increasingly sought after due to rising market prices.

As the circular factory ramps up operations with a target of processing 10,000 vehicles per year, it remains in its learning phase to determine the most efficient models for disassembly. Currently employing only a handful of staff, it does not fully replace the workforce’s demand for new vehicle assembly lines.

While Toyota emphasises its commitment to sustainability, the profitability of this circular factory will need to be demonstrated within three years. There continues to be an underlying desire among employees for new models that would reinvigorate the production facility.