LITHUANIA – Germany-based IFCO has announced the acquisition of Vilnius-based reusable packaging container (RPC) pooling services company PlasticPack, expanding its presence in the region.
PlasticPack is the current market leader in Lithuania providing reusable packaging in the meat and dairy supply chains.
Through this acquisition, IFCO aims to become the leading provider of RPCs for the fresh grocery supply chain in the Baltic region serving Lithuania, Latvia, and Estonia.
Commenting on the deal, Michael Pooley, CEO of IFCO noted: “Through this strategic transaction, we look forward to welcoming PlasticPack into IFCO’s global business portfolio.
“In addition, we are excited to apply our circular economy pooling model in the fresh grocery supply chain, which will bring much-needed cost and environmental savings in the Baltic region.”
PlasticPack will expand its product portfolio beyond meat and dairy to also include fruit and vegetable RPCs to growers and retailers, becoming the first company to offer foldable reusable packaging for fruit and vegetables in the Baltics.
By further expanding the use of reusable packaging in the region, IFCO takes another step toward fulfilling its purpose of making the fresh grocery supply chain sustainable.
Eugenijus Michalauskas, Managing Director of PlasticPack said: “We are really excited about the opportunity to join the IFCO team, allowing us to grow our thriving business and to expand into new verticals to complement our service offering.”
In addition to offering regionwide coverage in the Baltics, customers in the region will benefit from IFCO´s long-standing global expertise in the circular economy and providing reusable packaging.
Combining PlasticPack and IFCO will unite the best local and global operating expertise, providing an enhanced customer experience and the financial backing to scale the business.
PlasticPack will incorporate the highest customer service standards to reduce lead times, improve RPC availability, as well as streamline ordering and invoicing systems.
Further improvements in reverse logistics and transportation efficiency will also provide additional benefits and allow customers to reduce the environmental impact of their operations.
The move comes at a time when Lithuania is one of the leading countries in embracing the circular economy of plastics.
According to a European Environment Agency report, the country collects and recycles 92% of all packaging released to the market, reaching its 2030 targets.
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