Plasgad's New US Production Plant

A new Plasgad production facility has been established in the United States. It is partnering with RPM, a local partner, involving the investment of millions of dollars in purchasing a production site in North Carolina

The deal, which was signed a few weeks ago, includes purchasing production activity from RPM, an American player who will remain a partner with Plasgad in the new venture. As part of the deal, Plasgad is acquiring a wide range of production means, including more than 20 injection machines that will provide Plasgad with advanced technical/production capabilities in the US, as well as agreements and partnerships with business associates. This deal is expected to increase Plasgad’s activity and sales in the USA by millions of dollars in the coming years. The production site is located in North Carolina, which is a strategic location for current and future potential customers.

RPM has been sub-contracting for Plasgad in the United States since 2017. While Plasgad acquired the molding side of RPM, the latter will remain a separated company, concentrating in the service side, as a service supplier (from the efficiency of new equipment to mechanical and millwright work for plant mobilizations). The molding side will be under the brand of Plasgad USA, a partnership owned by John Hobson and Plasgad Ltd.

New Plasgad production facility will offer benefit of local production

For Plasgad, the big advantage is the local production, with no sea/air transportation needed. With more than 20 injection machines, it can meet demand for pallets and crates domestically. “And of course we bring with as vast knowledge in the field and uncompromising R&D capabilities,” Naama Konin, Marcom Manager for Plasgad, commented via email.

The U.S. is one of the biggest markets for the reusable packaging industry, she added. “There is constant growth in the demand for reusable items on account of one time use items such as carton boxed, wooden pallets etc. Plasgad identified this huge potential few years back and started to build its Go to Market strategy to the US market. This recent acquisition is another stepping stone in implementing its strategy towards the U.S. market.”

Plasgad specializes in developing and manufacturing reusable plastic packaging and transportation solutions. The company operates two production sites in Israel and has been active internationally for many years through an extensive global distribution network and three fully owned subsidiaries in Spain, Germany and the USA. The latest strategic move is part of Plasgad’s ongoing process of expanding its international activity, particularly in the USA. According to the Company CEO, Ofer Karmon, the new partnership will enable Plasgad to considerably increase its activity in the US, due to bringing Plasgad closer to its customers and the advance production capabilities that the NC site will provide.

In June, Plasgad launched its new RS pallet series, which it described as a game changer. Available in 48X32 inch/1200X800 mm and 48X40 inch/1200X1000 mm, with an open or closed deck, the 20 lb/8 kg pallets have a racking capacity of up to 1760 lbs/800 kg with the addition of skids. Customers, the company said, will no longer have to compromise by using wooden pallets to avoid the high costs associated with plastic pallets, or by opting for medium/heavy weight plastic pallets in order to comply with regulations and/or ensure hygiene. As from today, they can get an optimal solution at an affordable price.