THE STACK

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THE STACK

CUSTOMER NEWSLETTER Issue 1 2015

MEET THE TEAM

Find out about our exceptional team

INTRODUCING THE HLC SUPERLIGHT

Strong and durable lightweight pallet

MARKET UPDATE

See how the market is trending and

it’s impact on the industry


WELCOME TO THE STACK

NEWS FROM THE SHOP FLOOR

DID YOU KNOW?

Welcome to our 1st edition of The Stack, our customer

newsletter that will aim to keep you up to date with

company news, industry

trends, and other information

we hope you’ll find of interest.

The past three years have

seen a significant level of

investment and growth

for HLC. We’re delighted

with our two new sites

and excited about the

opportunities they bring

for us and our customers.

UPWOOD KILNS, FULL STEAM AHEAD

HLC’s boasts the largest production capacity of any pallet manufacturer

in the uk. We have invested more than any other business in the latest

technology and infrastructure to ensure that we are striving to be world

class in all aspects of our production systems.

This efficiency and production capability makes it possible for us to offer

exceptional levels of service and cost effective solutions without cutting

corners or letting our products suffer with inconsistencies in quality.

We are very proud of our production facilities which boast some of the most

advanced production lines in Europe and market leading renewables and

sustainability credentials.

We have a fantastic team of people behind our machinery and are

continuously developing and optimising our process.

QUICK FACT

We have the manufacturing facilities to produce 300,000

pallets per week across our two main sites.

With the addition of our new Burton plant we anticipate our

potential capacity to reach 400,000 by the end of 2015.

With your continued support we hope to continue to

develop our offering further and optimise our operations

to provide world class service and value.

As part of our progressive approach, HLC worked in collaboration with

our kiln partners to develop a bank of 4 specialist chambers with the

intended outcome of increasing speed and quality of drying.

PAUL LEWIS - JOINT MANAGING DIRECTOR

Three months on from our initial commissioning tests with the

Forestry Commission we have been able to really stretch the legs on

these powerful chambers and pin some truly impressive statistics to

this industry leading technology.

INTRODUCING HLC BURTON

Effective kiln drying is really quite a dark art and we are enormously

pleased with the quality and efficiency gains we have made with this

bespoke set-up.

In addition to this Heat Treatment charges have been regularly

achieved in as little as 3 hours, in some cases around half the time of

similar older technologies. Our Upwood kilns are a real step ahead of

the industry and like all other kilning across the business are fired on

biomass.

HLC boast the largest and greenest kiln drying facilities and capacities

in the industry.

USING BIOMASS HAS CO2 AND COST BENEFITS

MEET THE TEAM

HLC are proud to announce the opening of our 3rd site.

Together with a long term mutual commitment and supply

arrangement, HLC are pleased to announce a collaboration

with Marley Eternit, (the largest roof tile manufacturer in the

UK) and one of the UK’s largest pallet users.

HLC have worked closely with Marley Eternit for a number of

years improving their quality and service and this is the next

progressive step to offer our customer the utmost long term

value.

The site will service Marley Eternit’s pallet requirements at

their main Burton-on-Trent site as well as servicing a number

of existing customers and our growing customer base in the

area. This is a fabulous collaborative step for both businesses

and re-enforces HLC’s position as the most credible and

fastest growing pallet supplier in the UK.

HLC have invested ethically and shrewdly into the finest facilities for

our customer and our environment. We have been looking into the

benefits of HLC’s massive investments into kiln drying using biomass

as a fuel, rather than that of oil and natural gas.

In short, we estimate that kiln drying using biomass as a fuel is saving

between 1.988Kg of CO2 (gas) and 2.802Kg of CO2 (oil) PER PALLET.

Therefore on an average load of 600 pallets this equates to a CO2

saving of around 1.6T per lorry load!

We’re delighted with the findings and are glad to add Biomass into

our growing list of sustainability credentials. Did you also know that

we also invested in solar which contributes most of the power for

lighting in our Needham site. We also operate on virtually zero waste

from our manufacturing process.

Andrew Taylor

Sales manager

Andrew joined HLC in 2008 with

an in depth knowledge of the UK

pallet industry. What he doesn’t

know about pallets isn’t worth

knowing! Andrew is a keen

fisherman, having narrowly missed

out on a place in the England

team . and will frequently be

spotted around Rutland water on

a cold misty morning.

Brett Smith

Transport Manager

Brett started life at HLC in pallet

assembly, and has progressed

through to become our Transport

Manager, co-ordinating our logistics

fleet. He has recently completed

his CPC (Certificate of Professional

Competence) course and also

recently reached the milestone of

10 year’s service!

Tracy Shannon

Accounts Manager

Tracey joined HLC in 2007 and looks

after…well it’s easier to list what she

doesn’t do! Always a happy face,

Tracey is also very involved in the

local football club acting as Treasurer

having saved the club from closure

in (2010). Tracey and her husband

recently returned from Barbados

having celebrated their 30th wedding

anniversary. Many congratulations!

Simon Tucker

Strategic Purchasing Manager

Simon joined HLC in January to

spearhead our procurement strategy.

Simon is one of, well not many(!)

graduates in Forestry and has a BSc

in Forest Products Technology. Simon

has spent 16 years in timber sales and

we feel will add huge value to HLC’s

customers with depth of knowledge

in timber.

Visit our website for more news


PRODUCT SHOWCASE

INTRODUCING THE HLC SUPERLIGHT

With the continued availability issues of light and

medium weight second hand pallets many

customers have struggled with general supply, quality

and specification consistency in the past 12 months.

HLC has worked with a number of key clients and successfully

designed a range of Supalite pallets to hold loads of up to 400Kg.

These have the added benefits of being low cost, consistent specification,

traceable and consistent cleanliness (good for those customers supplying into

BRC grade environments). Please contact sales@hlc.co.uk for more information.

MARKET UPDATE

EYE ON IT

Many customers that take large volumes of reconditioned pallets

have been under pressure to reintroduce some volumes of new

pallets as the market of reconditioned pallets has dried up over

the past few months. Whilst customers have looked to make cost

savings in their supply chain by introducing secondhand pallets, the

increased demand has outstripped supply and left people with a

shortfall.

Raw material

UK Log supply is generally adequate and growers/land-owners are

happy to leave material standing where there is any dip in demand.

As such log prices remain relatively firm. A mild winter in the Baltics

has resulted in difficult logging conditions so supply from many areas

remains sporadic. Any major increase in demand in the Baltics might

see some pressure on supply for Q2

Timber Stocks

Q4 saw a reduction in demand for UK timber material as many buyers

chased European timber sources, with the weaker € making imported

timber attractive. Whilst this initially created a period of over-supply in

the UK, some mills took the decision to cut shifts to align stocks with

demand.

Although this continued into Q1 2015 the seasonal uplift in the spring

from the construction and fencing sectors is likely to bring back

pressures on supply.

CUSTOMER INSIGHT


Marley Eternit have been working with HLC since 2010, progressing

to a national supply deal from 2013, across our UK manufacturing

sites. We have been impressed by HLC’s strive towards quality,

innovation and customer service. We work in a mutually collaborative

way and are pleased to be partnering with HLC for all our pallet

requirements.


YOU DID WHAT WITH A PALLET?

Each issue we bring you the best

and worst examples of pallet use.

If you’ve seen something

you think we should feature,

then send it in and you

might get your picture

published in the next issue!

Prices

With the cost of raw material still firm and a reasonable economic

outlook in the UK it has only really been the falling € which has caused

the recent weakening on prices. With order books in the Baltics starting

to look healthier and the seasonal increase in demand we might

be looking at increases in Q2. These could be exacerbated if the €/£

exchange rate strengthens with any agreements over the

future of the Eurozone and the economic repercussions of the UK

General Election in May both having a potential impact.

HLC Needham

High Rd,

Needham,

Harleston

IP20 9LB

HLC Peterborough

Hangar 3, Upwood Airpark

Bury

Cambridgeshire

PE26 2RA

HLC Burton

Lichfield Road

Branston

Burton on Trent

DE14 3HD

sales@hlc.co.uk | 01379 852873 |

www.hlc.co.uk

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