DESCRIPTION OF BUSINESS
Greystone Logistics is a manufacturing and leasing company that designs, manufactures, sells and leases high quality plastic pallets that provide logistical solutions needed by a wide range of industries such as the food and beverage, automotive, chemical, and pharmaceutical and consumer product industries. The technology in its injection molding equipment, proprietary blend of recycled petrochemical resins, and patented pallet designs allow production of high quality pallets more quickly and at a lower cost than competitors. The recycled plastic for its pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin. Greystone is the leading pallet manufacturer in the beer and beverage industry with over 5 million of their patented recycled plastic pallets delivered to major customers.
HIGHLIGHTS / PROPRIETARY TECHNOLOGY & INTELLECTUAL PROPERTY
Only publicly-traded company focused on fast-growing plastic segment of the multi-billion-dollar pallet industry.
- Developed technology and proprietary recycled plastic blends and processes to become low-cost producer, with patents issued and pending for pallet designs and plastic fire retardant technology. One of the country’s largest post-industrial users of plastic.
- Has aligned themselves with a plastic pallet leasing program. U.S. wood pallet leasing revenue is currently over 1.5 billion annually.
- List of well-recognized customers: Pfizer, Apotex, Miller Brewing Company, Coors Brewing Company, Merck.
Pallets are used in virtually all United States industries in which products are broadly distributed. The Material Handling Industry Association (MHIA) estimates that there are over 2 billion pallets in use in the U.S., with over 600 million wood, plastic, or paper pallets purchased in the United States annually.
SHIFT TO PLASTIC FROM WOOD
Plastic pallet sales are growing at double-digit rates. Disposal issues and fumigation costs coupled with regulatory mandates on pest, biological, and chemical infestation with wood pallets means more emphasis on alternate solutions. As a result, the industry is rapidly transitioning to plastic pallets with wood pallet usage continuing to be abated over time. The opportunity exists for hyper-growth in leased plastic pallets.
BEVERAGE INDUSTRY OPPORTUNITY
Greystone is the leading provider of pallets to the beverage industry, which currently represents 35% of the plastic pallet market. In the beer industry alone, the two largest U.S. beer breweries, totaling 80% of the US beer market, circulate 5-7 million pallets within their distribution system annually. Approximately 15-20% of these pallets are lost per year, thus requiring consistent replacement orders. The beer industry represents just 5% of the total beverage industry.
- Sell pallets into managed lease pool – New national customer will drive growth in this $2 billion dollar market dominated by wood.
- Growth with industry – As the materials handling industry look for “green” alternatives and continue to adopt plastic pallets for automation, safety, health, cost and efficiency concerns, Greystone will benefit from this trend because of the infrastructure and capacity now available.
- Leverage MillerCoors Brewing Company success with direct sales on other industry giants moving from wood to plastic and expand distributor network – The Company is aggressively expanding their base of sales outlets.
- Creating new products – The Company currently has over 20 different pallet models. The company’s business plan for future growth is dominated by a lease/rental pallet and standard export, beer keg and specialty pallets.
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Legal Notes & Disclosures: Greystone Logistics, Inc. may make certain forward-looking statements that relate to future events or future business and financial performance. Such statements can be only predictions and the actual events or results may differ from those discussed due to, among other things, those risks described in Greystone Logistics, Inc. reports or evident on Forms 10-Q and 10-K. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any state. Past performance does not guarantee future performance. Additional information is available upon request.