At a time when multinational companies are reviewing their supply chains in search of greener solutions that contribute to their sustainability targets, dairy products giant FrieslandCampina subsidiary, P.T. Frisian Flag Indonesia, has partnered with the Indonesian subsidiary of Range International (ASX: RAN) for $2 million of pallets made entirely from recovered plastics.
Frisian Flag has been manufacturing and distributing its dairy products to the people of Indonesia since 1922 and its products are in supermarkets all over Indonesia. FFI’s IDR 21 billion (approx AUD $2 million) order will purchase Range’s Re>Pal pallets for its new factory in the Cikarang industrial district in West Java. Delivery of the Re>Pal pallets to FFI will commence in Q2 2024 with the order to be completed by May 2025.
Unlike timber pallets which cause substantial waste and deforestation and end being burnt, or plastic pallets made from predominately virgin plastic which also adds significantly to carbon release, Range’s unique Thermofusion™ process enables various types of less commonly recycled plastics to be blended and molded into its Re>Pal pallets.
According to Range’s Executive Chairman, Richard Jenkins, the contract win is the largest in Range’s history and highlights the direction of multinational companies that are integrating sustainable solutions into their supply chain.
“We are thrilled to commence this collaboration with FrieslandCampina, and we hope this sets a benchmark for how large multinationals will look at their production processes and can partner with companies such as Re>Pal to reduce the ‘plastic problem’.”
Frisian Flag Indonesia views Re>Pal pallets as an excellent opportunity to reduce plastic waste in Indonesia – a country with limited landfill availability and where plastic waste is commonly found in waterways. The partnership underscores a shared commitment to reduce plastic waste and minimise carbon footprints while contributing to Indonesia’s environmental sustainability goals.
“In line with FFI’s overarching mission to support a cleaner and greener Indonesia and aimed at advancing its commitment to sustainable business practice, and reducing plastic waste and carbon footprint, PT Frisian Flag Indonesia is pleased to announce a transformative partnership with Re>Pal, a pioneer in sustainable pallet solutions,” said Berend Van Wel, President Director of PT Frisian Flag Indonesia.
Range’s Re>Pal team have designed a new pallet to meet the performance requirements of FFI’s new production facility. Re>Pal’s recycling solutions allow it to recycle multilayer, poly-al and other mixed plastics as feedstock. To fulfil the FFI contract, Re>Pal will process over 4250 tonnes of used beverage cartons and multi-layered plastics sourced in Indonesia. The recycled plastic materials to be used in the FFI contract are equivalent to 30% of the estimated total amount of these specific types of materials recycled in Indonesia in 2022.
The $2 million contract is a big win for Range which reported $3.1 million revenue for its financial year ending 31 December 2022.
Shares in Range International are currently suspended from trading by the ASX as Range addresses an Indonesian tax matter related to a legacy business. The Company expects the matter to be successfully resolved. The ASX suspension has not impacted Range’s recycling and manufacturing operations which reported $775k sales revenue for the quarter ended 30 September 2023.
Beyond FFI, Range is in discussions with a number of large Indonesian conglomerates to recycle and utilise their plastic waste in their pallet production and purchase requirements. The Company is also preparing to launch two new pallet designs including one specifically for the Australian market.
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