RM2 and Jabil collaborate on NA production of pallets
The agreement will allow RM2 to scale production more efficiently to market demand.
RM2, a sustainable composite pallet manufacturer, has announced that it has entered into a strategic manufacturing agreement with Jabil for the mass production of the RM2 BLOCKpal pallet in Mexico. The agreement with Jabil, a global leader in digital manufacturing and supply chain solutions, will allow RM2 to scale production more efficiently to market demand. Initial production is expected to be deployed in Q1 2017. Pallets produced at the facility will be deployed with RM2’s customers in North America.
This agreement is complementary to the deal announced in April this year for the production of pallets by Zhenshi Holdings Groups Ltd in China, allowing RM2 to address more rapidly the growing volume demands of its clients. Production costs at the two facilities are expected to be similar.
John Walsh, CEO of RM2, said: “When we announced the contract manufacturing agreement with Zhenshi, we re-affirmed our commitment to production in North America. Today’s agreement means that RM2 will have a well-balanced manufacturing capability with efficient, low-cost and modern production bases in both Asia and North America. This will enable us to mitigate cost fluctuations and flex production more efficiently between two highly qualified contract manufacturers and better meet the demands of our customers.
“As previously stated, all production for 2017 is already earmarked to be deployed with our customers in North America. These deployments will include outright sales, rentals and long term lease agreements. We will update the market with regards to the specifics of these deals throughout Q4.”
“In keeping with Jabil’s pledge to positively impact the world in which we live and operate by addressing climate change and increasing resiliency, we are pleased to collaborate with RM2 in producing an eco-responsible pallet, thereby bringing an environmentally friendly solution to the logistics and supply-chains industry,” said Keith Cochran, Vice President, Jabil Global Business Units.
