PLAINFIELD, Ill., Dec. 17, 2002 (PRIMEZONE) -- According to RPM Technologies Inc. (OTCBB:RPMM), pallet sales worldwide approximate $20 billion a year. Currently, 90% of the market is wood pallets and 10% is plastic. The pallet market is shifting from wood to plastic at the rate of 3% to 5% per year and accelerating. Within five to seven years, the market will be about 50/50 wood to plastic. RPM's goal is a mere 1/4 of 1% market share of pallet sales within five years, or approximately $50 million in annual revenues.
Fueling this rapid transition to plastic was a March 2002 edict by 90 countries banning the use of soft wood packaging materials. Wood pallets shipped overseas must be fumigated or treated, which is costly and time consuming. Exporters are clamoring for alternatives and plastic pallets sales are burgeoning. RPM manufactures a plastic export pallet ideally suited for this trade. At little more than the price of wood pallets, RPM's versatile 40 x 40 export pallet is in great demand.
The demand for custom-size plastic export pallets is exploding as well. Exporters that previously used wood pallets in various non-stock sizes are looking for plastic substitutes. RPM has developed a system whereby custom-size pallets are constructed in virtually any size the shipper requires. RPM developed a proprietary non-slip surface feature that combines impregnated rubber modules compressed into the surface of the plastic, virtually eliminating loads shifting and sliding.
Of foremost concern to most shippers are cost, strength and safety. A completely recyclable RPM plastic pallet will meet and exceed their expectations. An RPM plastic pallet that costs $12 will last at least 75 trips, or $0.16 per trip. A Grade "A" wood pallet that costs $8 will last for about seven trips, or $1.14 per trip. For shippers using loop systems, plastic is the best and most economical way to ship.
Many workmen's compensation claims in the United States arise from handling wood pallets. Wood pallets typically splinter, gouge or cause puncture wounds from nails or sharp edges. With plastic there are no splintering, gouging, or puncture wounds. They have no nails or sharp edges. Wood pallets weigh 45 to 50 pounds versus 22 pounds for the RPM Plastic Pallet. Savings in freight bills alone can exceed several thousand dollars a year.
Wood pallets are an environmental menace. They consume 40% of U.S. hardwood supply and accelerate landfill volume. They deplete forests and present serious disposal problems for many communities. Additionally, wood pallets have been identified as harboring vermin, bacteria and insects. RPM Plastic Pallets are impervious to contamination. They are easily cleaned, stored and shipped. They are virtually eternal, as they are recycled to make new pallets when the old ones become damaged or broken.
RPM's sales are developed through a growing roster of wood and plastic pallet distributors strategically located throughout the U.S., Canada and Mexico where RPM has sold its stock and custom-size plastic pallets to many Fortune 500 companies. Trial orders are currently being shipped to New Zealand, India and the Middle East. RPM trades on the OTCBB under the symbol RPMM. Visit the Company's website at "rpmplasticpallets.com" for a brief tour of the company's product line and capabilities.