TIDMRM2
RNS Number : 7116Z
RM2 International SA
15 December 2014
RM2 International S.A.
Operational Update
RM2 International ("RM2" or the "Company"), the
vertically-integrated innovator in pallet development, manufacture,
supply and management, is pleased to provide the following
operational update and to announce continued progress in the
deployment of its BLOCKPal(TM) pallet.
Contract Wins
The Company has now entered into long-term, scalable contracts
for the supply of pallets with a total of seven customers and is
currently deploying pallets under provisional agreements with a
further six companies.
In particular, the Company announces that it has now entered
into a substantial, long-term contract in North America with a
NYSE-listed provider of print and related products and services.
The contract relates to the initial deployment of BLOCKPal(TM)
pallets in locations expected to generate approximately 450,000
pallet trips per year, with a stated intention to grow the level of
deployment during 2015.
Other contracts and agreements are with large pallet users
across a range of industrial sectors and, in addition to those
customers identified in the Company's interim results in September
2014, include a contract with one of the world's leading food and
beverage companies. This contract, under which the Company will
service certain of its UK and continental European closed loops, is
also expected to expand significantly through the first half of
2015.
The Company remains focused on converting its significant
pipeline of opportunities into sizeable long-term orders and on
extending its services with existing clients through increasing its
understanding of their logistics systems and will provide further
updates in this regard in due course.
Manufacturing
Production capacity in the Company's Ontario facility continues
to develop in line with earlier guidance, with a total of 26
pultrusion machines and four automated assembly lines currently
installed, providing capacity for the pultrusion, fabrication and
assembly of in excess of four million BLOCKPal(TM) pallets per
year. As anticipated, further efficiencies are being identified in
the pultrusion processes, resulting in an increase in the Company's
expected pultrusion capacity. The Company is also working to
identify potential gains in both the fabrication and assembly lines
as overall production capacity increases.
Production levels continue to build with, and are being managed
according to, demand as individual machines are tested and brought
into service. Production is currently running at a rate of
approximately 3,000 BLOCKPal(TM) pallets per day which is expected
to increase significantly with demand through 2015.
Reduced Environmental Impacts of RM2 BLOCKPal Pallets
In early 2014, the Company commissioned an independent,
peer-reviewed, life cycle assessment study (the "LCA Study") to
compare the environmental impacts of RM2's BLOCKPal(TM) pallet with
those of the standard multi-trip wood pallet. The results of the
LCA Study show that the BLOCKPal(TM) pallet provides significant
reductions in global warming impact and several other important
environmental factors compared to the standard multi-trip wood
pallet. The standard multi-trip wood pallet is itself regarded as a
more sustainable alternative to the single-trip white wood
pallet.
Through the findings of the LCA Study, the Company is now able
to demonstrate to major corporations that the BLOCKPal(TM) pallet
can help them achieve sustainability goals and reduce their carbon
footprint, whilst also reducing cost and improving the quality of
assets in their supply chains. This is a significant development
and a key competitive advantage for the Company, when compared to
other pallet manufacturers and pallet rental companies.
The LCA Study compared the energy and resource inputs, the waste
and emission outputs and the key potential environmental impacts of
RM2's BLOCKPal(TM) pallet and standard multi-trip wood pallet
across the full product life cycle, from raw materials through
manufacturing, distribution, usage and end of life disposition. The
gains observed are due to a number of factors specific to the
BLOCKPal(TM) pallet, including its lighter weight and considerably
longer life. In particular, in comparison to a standard multi trip
wooden pallet, the LCA Study found that RM2's BLOCKPal(TM) pallet
reduced:
Global Warming Potential by 21%
Primary Energy Demand by 50%
Acidification Potential by 31% and
Eutrophication Potential by 44%.
The Executive Summary of the LCA Study is available by e-mail
request to info@rm2.com.
Chief Executive Officer, John Walsh, commented:
"We are very pleased with the continued progress we are making
in signing contracts and deploying assets profitably with leading
organisations in a range of sectors. All of these relationships are
proceeding well with scope for significant expansion of our
services with these companies.
Sustainability is an area of intense focus in the boardrooms of
global organisations. RM2 can now demonstrate empirically to those
boards that the BLOCKPal(TM) pallet represents a genuine step
forward in the sustainability characteristics of the pallet-based
logistics systems whilst simultaneously cutting costs and improving
quality. These factors- cost, quality and sustainability - are at
the heart of RM2's value proposition.
We believe that the results of the peer reviewed Life Cycle
Analysis are a pivotal point in the development of RM2 and will be
a key catalyst in the long-overdue modernisation of the global
pallet logistics infrastructure."
For further information please contact:
RM2 International S.A. +44 (0)20 8820 1412
John Walsh, Chief Executive Officer
Ruari McGirr, Head of Planning and Communication
Cenkos Securities plc +44 (0)20 7397 8900
Neil McDonald
Alan Stewart
RBC Capital Markets
Pierre Schreuder
James Ireland +44 (0)20 7653 4000
Citigate Dewe Rogerson +44 (0)20 7638 9571
Simon Rigby
Kevin Smith
Shelly Chadda
Notes to Editors
RM2 International S.A. specialises in pallet development,
manufacture, supply and management to establish a leading presence
in global pallet supply and improve the supply chain of
manufacturing and distribution businesses through the effective and
efficient use and management of composite pallets. It is quoted on
the AIM market of the London Stock Exchange under the symbol
RM2.L.
For further information, please visit www.rm2.com
This information is provided by RNS
The company news service from the London Stock Exchange
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