Next month we will be starting a new pallet mold. This is a 1300×1100 sized pallet and is one of the standard sizes for pallets (generally transporting bags). We are looking at the chemical industry for this pallet which generally demands a larger size pallet for transport of their bags. This industry and the food industry too also use square pallets for transport of drums. We are looking to capture a share of the transportation market where our end user prospect companies are looking to run their own closed loop pooling systems. Some of our prospects are looking to reuse their pallets across Indonesia for these closed loops, using Re>Pal plastic instead of unsustainable timber.
In this scenario there are several elements of this new pallet that are important. Firstly weight, as this pallet may be an export pallet it needs to be light; it needs to be cost effective while it is effectively replacing existing unsustainable timber solutions, the reuse of the plastic and better Re>Pal lifetime value makes it more cost effective over the long-term. The pallet needs to have the strength (stacking 3,000kg and lifting to 1,500kg) while maintaining durability for multiple journey legs. This chemicals industry is a major pillar of the Indonesian economy accounting for roughly 9% of its GDP. Indonesia is both a major exporter of chemicals and a large domestic user. We are going through the final designs of this pallet before commencing production in November. As with all new pallets we have target customers in mind with whom we are discussing final requirements and design options. It is our intention to start development of this pallet in November.