The LPC Group a manufacturer of household paper and hygiene products – has awarded CHEP a further two year contract worth £1.25 million.
This is one of several contracts in various UK business sectors totaling some
£30 million which have recently been retained by CHEP, the global leader in pallet and container pooling services.
Devendra Gadhavi, Manager of Internal Audits with LPC, commented: "We have developed a long-term relationship with CHEP and they are our preferred partners for pallet supply. A key factor in the award of this contract is the fact that CHEP’s pallet pooling system will play an increasing role in helping the business to meet its tough environmental targets."
LPC, which has a turnover in excess of £208 million, has three manufacturing sites in Leicester as well as further paper mills in Belgium, France and Sweden. The core of the business is the manufacture of private label products for major retailers as well as specialist tissue for the personal hygiene, catering and medical markets.
CHEP pallets are used to bring these products into the UK from Belgium as well as move them to LPC’s customers across the UK.
CHEP has been working with LPC for many years and according to Daniel Walsh, Commercial Director, CHEP UK & Ireland, the business won this latest contract because of its ability to help LPC reduce its carbon footprint.
"Our business philosophy is to ensure pallets continually circulate throughout the supply chain which delivers significant environmental and cost benefits compared with returnable white wood or disposable alternatives," he said.
"With careful maintenance, the life cycle of a CHEP pallet can be some 10 years which reduces the need for new pallets."
CHEP worked with Leeds University on developing a model which calculates the environmental benefits of using CHEP pallets as opposed to white wood or disposable alternatives.
Using the environmental calculator, if you consider CHEP’s European operation over a 10-year period and, assume an annual growth rate of 10%, the company will have saved nearly 250 million trees from being felled when compared to one-way disposable pallets – representing an area of 8,500 km2.