Axios Mobile Assets has announced that it has ordered additional tooling and other assembly equipment to double output capacity at its pallet moulding and assembly facilities. The new capacity is scheduled to come on-stream in the second half of 2016.
The expansion comes in response to rapidly growing demand for the Axios pallet-based logistics solution from producers of perishable foods and other products distributed through the United States cold storage supply chain. Axios pallets and logistics services support food shipments to more than 20 national chain distribution centers in the Midwest and the Company is currently expanding its pooling operations into Northeast and Southeast states. Distribution centers receiving product on Axios composite pallets are expected to at least double in number by the end of the third quarter, with the Company’s service area growing to cover most of the country.
Axios completed a financing for gross proceeds of $14 million in December 2015 and is funded to undertake the expansion and increase the volume of its pallet fleet.
“Responding promptly to customer needs is important as we establish the Axios brand with new users in new markets,” said Richard MacDonald, President and CEO of Axios Mobile Assets. “The additional capacity will enable us to address our substantial order backlog and more efficiently meet demand from both existing and new customers in our sales pipeline.”
“On top of superior logistics capabilities, the Axios solution reduces the risk of transmitting Avian Influenza and other serious contamination threats by sanitizing pallets after each use – a first for the pooled pallet industry. Our biosecurity attributes, plus the fact that we have the only pallet pooling solution to generate verified carbon credits (VM0020), is proving attractive to a wide range of participants within the cold and perishable foods supply chain, especially since the Axios solution comes at a cost of use similar to that for the simple wood pallets that make up most of the market. Much higher value and better service make switching to our platform an easy choice.”
