raw materials
No Russian steel: Pallet builders are threatened with a production stop
An employee drives past new wooden pallets with a forklift in a company in Wismar. Photo: Jens Büttner/ZB/dpa
© dpa-infocom GmbH
The sanctions against Russia because of the attack on Ukraine are now also being felt in the German economy. The pallet industry is concerned.
Because their Nagel suppliers no longer get steel from Russia, German pallet manufacturers are threatened with an extreme material shortage.
In a few weeks, the first companies could therefore be forced to shut down their production, said the Federal Association of Wooden Packaging, Pallets and Export Packaging (HPE) on Wednesday in Bad Honnef. 90 percent of the so-called wire steel, from which the nails used for pallets are made, comes from Russia. However, steel deliveries are prohibited due to the current Russia sanctions. According to the association, there are no short-term alternatives because special nails are required.
Pallets are of great importance in industry and trade. Whether food, electronics or medicines – everything is carried in boxes that are transported on pallets in trucks, freight trains or airplanes. Last year, the local pallet industry produced around 120 million such wooden structures. About half of these are reusable pallets, the “Euro pallet” being the most well-known. The other half are disposable products.
The pallet industry is characterized by medium-sized companies, in Germany there are around 180 manufacturers with an average of 35 employees. “It is currently a very difficult situation,” says HPE board member Joachim Hasdenteufel. The industry is already under pressure in view of the sharp increase in the cost of wood, and the price of a Euro pallet has risen from almost 10 euros to around 25 euros since 2019. Another problem is the nails. Hasdenteufel emphasizes that the price is not the issue here. “It’s about the fact that we can produce anything at all.”