International pallet company PGS Group has launched its first site in the UK, marking the next stage of its expansion across Europe.

The French-Belgian business has opened a facility in the port town of Grays, Essex, where it will process second-hand pallets exclusively for pallet rental business La Palette Rouge (LPR).

PGS plans to expand the existing production line after winning the contract with LPR, with both companies investing jointly in the venture.

The site is one of the largest within PGS Group, employing 70 people and processing 2.8m pallets each year. Its location offers direct links to France and provides a gateway to new UK markets. 

Covering 16,000sq metres the facility is in operation around the clock and is set for further growth, with plans to expand capacity to five million pallets annually.

PGS Group CEO Luc Grauwet said: “This new site is a logical next step in our collaboration with LPR. It will give us access to an important market and also to new logistics and operational opportunities that strengthen our European position.” 

PGS currently operates in 13 countries, including France, Belgium, Germany, Spain, The Netherlands, Portugal, Ukraine, Latvia, Denmark, Sweden, Austria and Morocco. 

The company employs 1,000 people across more than 50 sites, produces 25 million new pallets and recovers 20 million recycled pallets a year. 

PGS Group boasts its own sawmills and pallet production, with the aim of delivering sustainability and control over the entire supply chain.