PGS Group has taken possession of its first site in the UK, marking the next stage of its expansion across Europe.
After winning a tender, the French-Belgian business has taken over a facility in the port town of Grays, Essex, where it will process second-hand pallets exclusively for pallet rental business La Palette Rouge (LPR).
This site is one of the largest in PGS Group, employing 70 people and processing 2.8 million pallets each year. Its location offers direct links to France and provides a gateway to new UK markets.
PGS Group CEO Luc Grauwet said: “This new site is a logical next step in our collaboration with LPR. It will give us access to an important market and also to new logistics and operational opportunities that strengthen our European position.”
The Essex site has direct logistics connections to the company's French base in Picardy. It also opens up new opportunities for timber supply and international partnerships.
PGS currently operates in 13 countries, including France, Belgium, Germany, Spain, The Netherlands, Portugal, Ukraine, Latvia, Denmark, Sweden, Austria and Morocco. Across more than 50 sites, the company employs 1,000 people, produces 25 million new pallets and recovers 20 million recycled pallets a year.
Covering 16,000m² and running 24/7, the Grays site is set for further growth, with plans to expand capacity to five million pallets annually.
The facility was originally established two years ago by LPR. The PGS team will now focus on collecting, identifying and sorting pallets for reuse and export, with those requiring repair treated to the ISPM15 standard. Since Brexit, this international standard has been mandatory for all wooden packaging exported from the UK to Europe.
PGS will continue and expand the existing production line, with PGS and LPR investing jointly in the venture.
