Shaw Stockbroking analyst Scott Marshall said opinions varied as to whether plastic pallets would be successful. There were health concerns in the food industry and queries whether plastic could survive knocks as well as wood.
Plastic pallets also had a higher initial cost of manufacture, and distribution networks had to be set up.
"Brambles has looked at the issue and believes wood is better,'' he said.
IGPS says its certified plastic pallets are less susceptible to fire, are lighter than the average wooden pallet, and if damaged, can be remolded into new ones, effectively giving them an indefinite life.
The company maintains the pallet is more uniform in size, is much more durable and hygienic, and contains a bar code tag that allows for individual asset tracking through the supply chain.
BXB Price at posting:
$4.96 Sentiment: Buy Disclosure: Held
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