News Roundup - Western Pallet Association

April 2011
Executive
Ryan Stearns President
Tom Worthen VP
Mark Garnett Sec/Treas
Kathleen Dietrich Past Pres.
Dave Sweitzer Exec. VP.
Kelly Bennion
Pat Sherry
Greg Vipond
Directors
Associate Directors
Ian Carter
Tye Winsor
Western Pallet Association
Please direct inquiries about
the WPA to David Sweitzer,
P.O. Box 1095, Camas, WA
98607
Ph. 360 335-0208
Email:
wpa@westernpallet.org
Website:
www.westernpallet.org
Way Out West
Newsletter for Members of the Western Pallet
Association
PIMS Announces New Name—Pallet Logistics
and Unit-load Solutions, Inc.
PIMS, the collaborative pallet management initiative launched by members of
the pallet industry in the United States, has announced its new name – Pallet
Logistics and Unit-load Solutions, Inc.
The concept behind PLUS is based on a collaborative
effort between pallet producers and recyclers,
product manufacturers, distributors, and
retailers, working together to provide a low cost
pallet solution for the entire supply chain while
ensuring the delivery of exceptional pallet quality,
performance, and durability. After initially analyzing
several other pallet pools, PLUS took the best aspects from iGPS, CHEP,
PECO, CPC and EPAL. From that a model was created for a national industry-wide
pallet pool system operated by a network of independent wood
packaging companies working together rather than a single company.
PLUS Concept in a Nutshell:
� PLUS is a not-for-profit organization whose mission is to develop, administer,
educate, support and market the PLUS program for the industry.
� PLUS facilitates the system that allows participating companies to make
money
� PLUS participants cooperate to form a closed loop national network
� PLUS high-quality block pallets are shipped to buyers from either new
pallet manufacturers or recyclers (Continued on Page 3.)

PAGE 2 W AY O U T WES T AP RI L 2011
Deutsche Bank Suggests Possible Brambles Pooling Acquisition Targets
With Brambles having recently purchased pooling entities such as the airline containers company Unitpool,
U.S.-based container rental company Container & Pooling Systems and IFCO Systems, analysts from
Deutsche Bank have suggested a number of additional potential pallet and container pooling-related
targets for the parent of CHEP, according to a story at www.theaustralian.com.
This round of speculation follows earlier comments this month from UBS analysts suggesting that
Brambles may offer its document management business, Recall, for $US1.9bn ($1.78bn) in an effort to
rationalize its conglomerate structure.
Deutsche Bank believes that Brambles will continue to acquire pooling-based businesses to continue to
add scale or provide geographic diversity.
Potential targets listed by Deutsche Bank include a range of products and services, as well as geographic
locations that include countries such as Norway, Brasil, Chile, Argentina and Singapore, to list some.
These targets include Euro Pool System, Goodpack, Polymer Logistics, La Pallet Rouge, Rehrig Penn
Logistics, Orbis Corporation, Airdex International, Rentpack, Rentapack, Central Embalagens and Argen-
Pool Systems.
Rising Nail Prices Trigger Concern
Pallet companies are bracing to pay over $31 per box on their next nail delivery in May, according to a
recent conversation at LinkedIn. While some industry veterans have seen days at $40 or more per box in
the past, for newer industry members the move upward is concerning, with one manufacturer reporting
having already weathered 30-38% increases since January, while bracing for additional increases
anticipated over the next few months.
Korean steel manufacturer Pohang Steel Company (Posco) recently raised the price of wire rod to
US$1080 per metric ton, which translates into $24.50 per 50 pounds of wire, according to Ian Carter of
Crane Point Industrial LLC. Ian noted that rod pricing from Posco can push upward when auto production
increases, and as a result not necessarily follow world market conditions.
Another item of concern on the horizon, Ian cautioned, is an anti dumping duty (ADD) petition filed against
imports from UAE. The Department of Commerce announced the launch of the investigation on April 20,
with a preliminary injury determination anticipated for release around May 16. If the ITC determines that
there is a reasonable indication that steel nail imports from the UAE are materially injuring, or threatening
material injury to, the domestic industry, the investigation will continue, and Commerce will be scheduled
to make its preliminary determination in September 2011. If it is successful, Ian noted, there will be
additional upward pressure on the price.
China is also talking about export taxes for wire rod. ―An export tax or tax rebate is put in place to either
discourage or encourage the export of an item,‖ Ian explained. ―For years the Chinese Government offered
an export tax refund to stimulate sales and expansion of the steel industry. Now as the finished goods
manufacturers push forward, the export tax on wire rod helps keep world steel prices above the internal
prices.‖
―Pallet core shortage, metal (nails), coupled with fuel rates rising will make it an interesting year....,‖
summarized Manuel Padilla of Oakland Pallet Co.

AP RI L 2011
W AY O U T WES T
NWPCA on iGPS: Document Swap Didn‘t Fix the Problem, JUST Fixed the
Numbers
iGPS makes unexplained changes to published chemical amounts – numbers relevant in lawsuit
PAGE 3
ALEXANDRIA, Va., April 11, 2011 /PRNewswire-USNewswire/ — In the ongoing public policy debate on the
use of the controversial flame retardant decabromodiphenyl ether (decaBDE), Intelligent Global Pooling
Systems (iGPS) has chosen to quietly lower the amount of that chemical – not in its millions of pallets, but in its
data chart. Doing so in the midst of a lawsuit based on numbers iGPS has promoted for nearly three years in
its own life cycle analysis (LCA) on its own website not only weakens iGPS‘ position in court, it raises questions
about the dependability of the reports on which iGPS relies.
―Since August 2008, iGPS has promoted a life cycle analysis on its website listing the amount of decaBDE in
each new pallet at 3.4 lbs.,‖ said Bruce Scholnick, President and CEO of the National Wooden Pallet and
Container Association (both Scholnick and the association are targets of a lawsuit filed by iGPS in December
2010). ―For more than two years, environmental groups, members of Congress, the U.S. Environmental
Protection Agency, state governments, fire officials and others have voiced concerns over the potential risks
surrounding the use of decaBDE in consumer goods and plastic pallets. When our trade association joined the
public debate pointing out the amount of decaBDE in the iGPS pallets, using iGPS‘ own numbers from its LCA
featured on its website, the company filed a lawsuit against the association and me personally and has since
changed the numbers in the report.‖
Background: On August 4, 2008, iGPS issued a press release providing a link on its website to a summary
report of the LCA conducted by Environmental Resources Management, Inc. (ERM). The posted LCA listed the
amount of decaBDE in each new pallet at 3.4 lbs. Recently, iGPS surreptitiously posted a changed LCA with
different data – specifically the new report claims the pallets have less than half that amount, only 1.5 lbs. of
flame retardant.
Both LCAs are dated July 2008 on each internal page. Both are labeled as a product of the research company
ERM. The reports have slightly different titles, cover dates, and numbers of pages, but what is relevant in this
issue is the conflicting data with regard to the amount of decaBDE in each new pallet.
� LCA Posted on iGPS Website Aug. 2008: Table 2.1 Pallet Systems in this Study (page 5). ―Fire Retardant
– lbs (kg) 3.4 (1.5).‖
* LCA Posted on iGPS Website 2011: Table 2.3 Pallet Systems in this Study: Baseline Scenarios (page 7)
lists ―Fire Retardant – lbs (kg) 1.5 (0.68).
In December, iGPS sued NWPCA and its President/CEO Bruce Scholnick over a NWPCA press release
issued a few days earlier, contending that ―…NWPCA states in the [news] release that each of (iGPS‘) pallets
contain 3.4 lbs. of decabromodiphenyl ether. This is a false statement.‖ Of course, NWPCA‘s statement that
iGPS‘ pallets contained 3.4 pounds of decaBDE came from the LCA then posted on iGPS‘ own website, so
there is no basis for iGPS‘ claim that NWPCA lied.
Shortly after NWPCA filed papers with the court explaining that the source of the data was iGPS itself, the
replacement LCA appeared on the iGPS website without fanfare.
iGPS will certainly have to account in court for this change. However, the questions raised by this switch
should be addressed immediately and publicly.
* Where was the newly-posted LCA document until recently?
* What explains the differences in the two documents purportedly created within days of each other in July
2008?
* In April 2009, NWPCA issued a news release headlined From Fire Hazard to Toxic Platform which said
among other things ―According to a lifecycle analysis by Intelligent Global Pooling Systems (iGPS) who
purchases its pallets from Schoeller Arca System, its deca-bromine infused plastic pallets contain as much as
3.4 pounds of the chemical; that volume is necessary for the company to advertise its pallets as equivalent to
wood pallets which are the benchmark for pallet fire safety.‖ (Continued on Page 6)

PAGE 4 W AY O U T WES T AP RI L 2011
Upcoming Events
6/12-6/14/2010
Canadian Wood Pallet & Container Association
Annual General Meeting
Ottawa, Ontario.
Phone: 705 887-6468
www.canadianpallets.com
09/30/2011
CWPCA Western Focus Meeting
Vancouver, British Columbia
Phone 613 521-6468
www.CanadianPallets.com
Do you have important company, association or
industry news to share? Way Out West is published
monthly for members of the Western Pallet
Association. Contact Rick LeBlanc at
newdesk@westernpallet.org
Jaspinder S. Brar
Vice-President
Advance Lumber Remanufacturing
www.theadvancegroup.net
E-mail:
jbrar@theadvancegroup.net
Phone: 604-580-4918
Fax: 604-580-4998

AP RI L 2011
More Bad Smell
from J&J
If it was only as simple as
buying deodorant.
Johnson & Johnson is still
struggling with its odor problem,
according to a report in
the Wall Street Journal.
WSJ reports that a Johnson
& Johnson unit is recalling
two lots of its Topamax antiseizure
drug following complaints
about an unusual
odor – one which the article
suggests is potentially
linked to chemically treated
wooden pallets.
Up to this point in time,
Johnson & Johnson has
failed to prove that the musty
odor is indeed caused by
wood pallets, according to
previous commentary from
NWPCA, which has suggested
that wooden pallets
provide an easy excuse rather
than a definitive answer.
While other over-thecounter
drugs such as Tylenol
have been involved in
previous recalls, this is the
first involving a prescription
drug. ―Though J&J has a
policy to eliminate problem
pallets used to ship and
store products, some apparently
slipped through the
cracks, raising questions
about a possible impact for
other prescription drugs and
products,‖ commented WSJ.
W AY O U T WES T
PLUS Concept in a Nutshell (Continued from Page 1)
PAGE 5
� Recyclers facilitate recovery of PLUS pallets and repair those pallets to
a pool standard
� The PLUS non-profit logistics center tracks pallet movement through the
system to identify problem areas concerning loss and breakage
� Third-party inspection services assure the pallets are built and repaired
to the pool standard
PLUS is open to any pallet supplier willing to comply with program standards
as established by the Board of Directors. It is a free market system.
Participating pallet buyers can purchase from any PIMS provider they wish
– looking for the consistent high-quality PIMS pallet at the best price and
finest service.

PAGE PAGE 6 6 W AY O U T WES T
W AY O U T WES T
NWPCA Questions LCA Data Changes (Continued from Page 5)
If the number was wrong, why didn‘t iGPS say so then? Why did iGPS continue to post the LCA listing 3.4
lbs of decaBDE in its pallets for more than a year?
* In June 2009, the Environmental Working Group (EWG) sent a letter to the Food and Drug Administration
―writing to request an immediate halt to the use by the food industry of plastic pallets made with the
neurotoxic flame retardant decabromodiphenyl ether (Deca)… Millions of plastic pallets, each containing 3.4
pounds of Deca …‖
In that letter, EWG listed iGPS as the company using the flame retardant saying ―There are an estimated 4
million Deca-treated plastic pallets in use today, with a significant portion used in the food industry. In
September 2008, iGPS, a major plastic pallet shipping company, announced an agreement with
Netherlands-based Schoeller Arca Systems to buy 30 million Deca treated plastic pallets over the next five
years.‖
Why did iGPS fail to refute EWG‘s statement of 3.4 lbs of decaBDE?
* In August 2009, EWG distributed a letter to all of the major supermarkets in the U.S. urging them to
―suspend the use of plastic food storage racks that contain the toxic flame retardant chemical and neurotoxin
commonly called Deca (decabromodiphenyl).‖ Again, EWG listed the figure 3.4 lbs of decaBDE. Two days
later, an iGPS attorney stated that ―iGPS pallets do not contain 3.4 lbs of decabromine as EWG alleges.
They contain less than half that amount, encapsulated in their resin, which is non-porous.‖

AP RI L 2011
W AY O U T WES T
PAGE 7
Having made that public statement in August 2009, why did iGPS again continue to post on its website for the
LCA listing 3.4 lbs of decaBDE ?And, if iGPS pallets truly contained ―less than half‖ the amount of decaBDE
that the public believed they contained, why didn‘t iGPS tout this on its website?
Here‘s another troublesome conflicting data point. The original LCA reflects 47.5 pounds of total pallet weight.
The revised report reflects the same total pallet weight even though the replacement LCA has reduced the
amount of Deca to 1.5 pounds. Does this altered data provide comfort to those concerned with fire safety and
food safety?
Where is Environmental Resources Management in all of this?
Clearly, the definitive ability to end the confusion is in the hands of Schoeller Arca Systems, Inc., the company
that manufactured the pallets for the iGPS rental pool. Certainly, Schoeller Arca can tell the world the ―recipe‖
for these pallets.
Will the trade press and
consumer media ask these
important public policy
questions? To date, some
reporters have been more
interested in writing stories
with clever war metaphors
and pallet puns than
analyzing the substance of
the issue. NWPCA believes
this decaBDE in pallets is a
serious concern as
evidenced by the fact that
decaBDE has been banned
for use in plastic pallets in
Maine, Maryland and
Oregon, and decaBDE has
been banned in many other
products throughout the
world. In states where they
are not banned, these
chemically-treated pallets
will continue to transport
food to neighborhood
grocery stores across
America.
―The lawsuit against us is
a free speech issue,‖ said
Scholnick. ―When we
raised the issue, iGPS
filed a lawsuit to try to
shut us up, but we will not
be silenced. The question
to iGPS is: ‗Just exactly
how much decaBDE is in
your pallets?‘ The question to legislators and regulators charged with protecting pallet users and
consumers remains: Is any decaBDE in plastic pallets too much?‖ Source: NWPCA.

PAGE 8 W AY O U T WES T AP RI L 2011
News Roundup
(The headlines below are live links. Click on
individual headlines to read the complete
stories.)
New Plastic Pallet Plant to Operate
in Arizona
RPA Adds Members, Sells Out
Pavilion for PACK EXPO 2011
IMITEK Disinfects Cardboard and
Wood Pallets in Scandinavia
Columbia Machine Announces
Further Development of Load
Transfer Station
FBI Raids Recycler Holding iGPS
Pallets
Australian Pallet Company Awarded
$2 Million to Develop Natural
Composite Pallet
2ic Software Increases Pallet Control
Footprint in New Zealand
La Palette Rouge Boosts Revenue
and Turns
Berry Plastics Offers Pharma
Products on Plastic Pallets