Capacity extension at Golden Pallet Kft.

Name of Beneficiary: Golden Pallet Kft.

Project’s title: Increase competitiveness by capacity extension at Golden Pallet Kft.

Planned termination of the project: 31.08.2023.

Project ID: GINOP_PLUSZ-1.2.1-21-2021-00177

Contractual value of subvention: 68 498 934 Ft

Rate of subvention (in percentage): 70%

Introduction of the project scope:

For our company purchasing raw material is difficult, or many times impossible for such specially manufactured products, which have stable demand at place. We produce own sawn raw material currently, but the volume is marginal compared to the purchased pallet elements. Our strategic Partner shows increasing interest for their special pallets with 1013x1216mm perimeter, which consisits of only sawn timber elements. During the recent years due to the bottleneck of our timber producing capacity, we could fulfil their demand on minimal level and we could complete the open order volume with slight delay. Currently we operate an alternating saw with low output and also a block cutter, both requiring high level of human labor while lacking of efficiency. Since the market requires increasing number of 48×40” and similar sizes, our company found growth potential by stabilizing the continuity and the efficiency of the production of such products. The market of sawn timber has become an extreme buyer’s market recently, making the procurement of non-standard dimensions more difficult, or many times impossible. On supply side as an alternative we found the long material in different cross sections, which can secure the efficient and effective supply of the non-standard timber; following further processing. The automatic optimizer we ordered is ideal for both tasks, also to produce special raw material, and handle the cut-to-size process of the long material. Thanks to this we can widen the range of our suppliers, and stabilize the supply of the raw material for our non-standard pallet production, furthermore the increased productivity of our sawmill could be a crucial support for the stable and flexible operation of our increasing production capacity. As a producer we thrive to use envornmentally friendly technologies in our new investments, e.g. by purchasing electric vehicles, or purchasing recently an equipment, which -instead of wasting moving energy by braking- generates electricity from the unnecessary moving energy, and supplies other consumers on the line. Our annual energy consumption exceeds 1 million kWh. Majority of the specification of our produced pallets require kiln dried raw material. On the market mainly fresh cut material is available, so we apply our kiln drying technology to reach the required moisture content in the wood. Drying is made in kilns, currently we have 3 kilns, with 110m3 capacity each. The annual consumption of the kilns is around 640.000 kWh. Therefore for the supply of this subsection of our production we plan to build a photovoltatic system. The small power plant will be equipped with feed-in blocker, to prevent feeding the surplus to the grid. By using the photovoltatic system, the occasional network supply issues would be compensated, the continuity of our operations would be secured. Golden Pallet will utilize consultancy and training services for more effective operations.

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Golden Pallet Ltd. Telefon: +36 (23) 446-000

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Thank you for your understanding and cooperation,
Csaba Pikó Managing director, and the Golden Pallet Crew