The major fire, which caused substantial damage to the production site of Italian pallet block manufacturer Ecobloks on 3 July, also brought about a major challenge for numerous Italian clients who operate in pallet production and repair. While some companies are able to continue work autonomously for a short period of time, most businesses in the sector depend on Ecobloks, since it is the only pallet blocks supplier in Italy. The interruption of production has forced many companies to buy blocks from foreign suppliers, which in turn affects pallet prices.
Ecobloks’ competitors profit from the current situation. With a market share of 20%, they alone will not be able to satisfy the demand.
“The fire at Ecobloks has already fuelled speculations on prices”, confirms Nicola Semeraro, head of Rilegno, the Italian association for the recycling of wood packaging. Semeraro hopes that production can be resumed as soon as possible, “not only for financial and personnel-related reasons. The company makes a significant contribution to recycling in our sector. Pallet blocks from recycled goods are the preferred form of recycling because wood from used packaging again becomes a part of wood packaging.”
