CABKA and Innova Packaging Systems are to merge under the umbrella of the newly founded CABKA Group.
The CEOs of both companies made the announcement on 19 November and said that until a joint brand is announced, the labels of pallet manufacturers CABKA and Innova Packaging Systems (IPS) will remain intact.
The merge will see the new group become a broad-based provider of plastic pallets, boxes and pallet boxes, with company entering the new group with their own niche market; CABKA focuses on inexpensive one-way pallets for export and IPS concentrates on higher-priced multi-way pallets.
The merge is expected to enable both companies to improve their market positions and become more effective in developing innovations.
"We want to organically grow together by way of a strong range and continuous innovation-based expansion," said Gat Ramon, director and management spokesperson of the new CABKA Group.
"For example, we are going to set up a production line complete with recycling plant for mixed plastics in the vicinity of Ypres, Belgium."
The companies are also a good geographical fit. While CABKA has a strong presence in Germany (Weira, Berlin), North America (St. Louis) and Spain (Valencia), Belgium-based IPS (Ypres) serves the Benelux countries, as well as the UK, Ireland, France and Spain.