HANOVER, Germany—ContiTech A.G. is working on a new business model whereby clients lease conveyor belts instead of buying them.
The lease price, it said, will be based on material and amount transported, which will be gauged by sensor and monitoring technology. The company is showcasing a model at the Hanover Fair, April 23-27, in which sensors will be monitoring "every movement of the conveyor belts and materials conveyed," ContiTech said in a news release.
The sensors "inspect surfaces and report fill levels or incorrectly operating belts in real time," ContiTech explained.
"This technology provides the conditions for new business models such as pay-per-ton and predictive maintenance of components or systems," said Jens Koster, who is responsible for business development, finance service and digitalization in the Conveyor Belt Group.
According to ContiTech, customers can put together a complete package of conveyor belt with services and maintenance.
"This means that we can also take over the complete servicing of our customers' systems," Koster said.
Conti's tire business also announced in March that it was studying a plan under which it would rent out tires for corporate fleet and charge for mileage used.
Speaking to German magazine Automobilwoche, Werner Koestler, head of strategy at Continental Interior, said Conti would be tapping into its ContiConnect digital monitoring platform for the business model.
The plan involves both the vehicle and tire being be equipped with sensors to evaluate the condition of the tires.