Axios readies bio-based pallets for market

Published: September 13, 2012 6:00 am ET

Related to this story

Topics Sustainability, Packaging, Injection Molding

VAUGHN, ONTARIO (Sept. 13, 2:05 p.m. ET) — Axios Mobile Assets Corp. is bringing its lightweight, bio-based shipping pallets to market.

The startup, based in Vaughn, Ontario, recently entered into a five-year, $300 million purchase agreement with pallet management company Ongweoweh Corp. Axios will ship its first batch of pallets — 20 percent of the first-year requirements for the blanket order — in October.

To meet demand, Axios recently acquired a controlling interest in a Guelph, Ontario-based thermoset molder.

Axios, a publicly traded company, said it could not disclose the name of the molder or discuss terms of the deal.

The facility, which employs about 12 workers, will provide Axios with molding and automated assembly capabilities and will serve as the company’s research and development center.

The facility will begin operations in October and has an annual capacity of about 200,000 pallets, enough to cover the first year of orders, said Rich MacDonald, president and CEO of Axios, by phone.

The facility is Axios’ first manufacturing site and has room for expansion, MacDonald said, adding that the company has a backlog of orders stretching over more than the next five years.

The deal with Ongweoweh is Axios’ first big step toward commercialization. The two companies have been running tests and discussing data for about two years, and Ongweoweh sees the Axios’ pallets as a “fantastic alternative to what they’re currently offering their clients,” MacDonald said.

Axios manufactures pallets using a soy oil-based resin. The composite material allows for pallets that meet the same weight requirements as wood but are 30 to 40 percent lighter, MacDonald said.

“The construction isn’t terribly different, but in terms of being best in class, it’s absolutely the lightest in the market for a plastic pallet,” he said.

The 48-by-40-inch pallets weight about 47 pounds and can handle a rackable load of up to 2,800 pounds. To meet the same specifications, a wood pallet would need to weigh about 85 pounds, he said.

Companies that use the pallet have the potential to earn revenue in carbon credits, he said. “It reduces costs of shipping goods from A to B, and that’s obviously a very important feature that no one else has.”

The pallets are designed to cut-down on loss. The metal-free structure and soy-based material has no scrap value, preventing them from being a target for theft.

They also come coupled with proprietary RFID and track-and-trace technology that allows manufactures to follow the pallets every step of the way, MacDonald said.

Axios says its pallets offer several other advantages — the material is inherently flame-retardant, so the pallets do not need to be treated with controversial retardants like decabromine, and is naturally phytosanitary and has limited liquid absorption. The pallets meet industry standards and FDA requirements for the pharmaceutical and food and beverage industries.


Comments

Axios readies bio-based pallets for market

Published: September 13, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Jarden hiring for new plastics plant

December 19, 2014 1:45 pm ET

Consumer products conglomerate Jarden Corp. is hiring plastics technicians for a new operation in Erlanger, Ky.    More

Image

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Soy-based foam improves window performance, sustainability

December 18, 2014 12:51 pm ET

Launched in April 2013, Madison, Wis.-based WFI Global LLC is making a name in the fenestration market with what it says is a distinct product...    More

Image

Europe puts its 'Circular Economy' recycling effort on hold, for now

December 18, 2014 12:28 pm ET

The European Commission has withdrawn its Circular Economy initiative from its 2015 work program, and will instead replace it with “a new, more ...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events