Worldwide Government Mandates Drive Plastic Pallet Sales; PalWeb Corporation Accelerates Production for New Demand
DALLAS, March 21 /PRNewswire/ -- PalWeb Corporation (Pink Sheets: PAEB) continues to increase production subsequent to successful performance testing of its proprietary two-piece plastic pallet and manufacturing improvements at its 115,000 square foot factory in Dallas, Texas. This increased output matches rising demand from U.S. exporters. "Customers have been calling because many new foreign import restrictions have been imposed that make the use of wooden pallets less attractive," says Ron Hale, President of PalWeb's subsidiary, Plastic Pallet Production, Inc. "Plastic pallets are insect-free, easily cleaned and totally recyclable, thereby meeting changing requirements set by foreign governments on product shipment platforms."
Dr. Ed Brindley, Jr. in the Pallet Enterprise, January 2000, article "A Small World Getting Smaller," observes that just this year the People's Republic of China has begun to require all imported wood containers, including pallets, be heat treated due to their concern about the introduction of harmful insects. Following close behind, Brazil now mandates that all wood shipping containers be either heat-treated or fumigated within 15 days of departure from the country of origin. Signed documentation, verifying these expensive treatments, must accompany all of these shipments.
In a different assault on wood pallets and containers, all countries in the European Common Market have passed packaging waste environmental taxes that will be in place within the next two years. Pallet Enterprise's February 2000 article, "U.S. Europallet Passes Tests; Opens Door for Registration," reports that packaging that cannot be reused, exchanged or recycled will be hit especially hard. Importers will incur the full cost of the taxes on unapproved pallets. Currently, the majority of pallets manufactured in the United States do not meet European standards.
PalWeb manufactures and markets rackable plastic pallets performance certified to ASTM (American Society for Testing and Materials) standards. To date, manufacturing and marketing efforts have been nominal while the Company is using low capacity prototype manufacturing equipment. Additional PalWeb objectives call for expanding its manufacturing capacity, multiple pallet designs, pallet lease pool services, and pallet-tracking technology to optimize product distribution.
Paul Kruger, PalWeb CEO, adds, "Growing product handling changes and environmental concerns on a global scale are causing material handlers and logistics engineers to rethink their traditional behaviors. Our business plan complements these industry changes. We have just completed the successful testing of our initial pallet design and are increasing production at our current facility. On a strategic level, we recently commissioned Lockwood Greene to formulate conceptual designs for a new manufacturing facility and are seeking funding to realize this endeavor."
This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of the Federal securities laws. All statements, other than statements of historical facts that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including the potential sales of pallets or other possible business developments, are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including the ability of the Company to continue as a going concern. Actual results may vary materially from the forward-looking statements. PalWeb Corporation is a development stage company, which expects to engage in the manufacture and sale of plastic pallets and plastic injections molding machines and systems.
SOURCE PalWeb Corporation
/CONTACT: Arlin Plender, Investor Relations of PalWeb Corporation,
214-698-8330, or email, ir@palweb.net/ |
