Dieffenbacher will supply its Formwood preparation and pressing system while Werzalit will provide the process engineering for manufacturing the pallets and blocks.

Some machine components such as the moulding and the dryers could also be manufactured directly by Dieffenbacher’s subsidiaries.

The company said new opportunities were now opened up for marketing an entire production system.

”The principal growth markets are in South America, the Middle East and China,” said a spokesperson

“Solid wood pallets have to be chemically or thermally treated to be allowed into international channels. All pests are reliably killed by the pressure and heat involved in our manufacturing process.”