Views: 0 Author: Site Editor Publish Time: 2026-10-14 Origin: Site
As a manufacturer of palletised containers and racking systems, we are seeing first-hand how the European automotive supply chain is undergoing a packaging revolution. Customers no longer simply ask, ‘Will it fit? Is it sturdy?’, but are increasingly asking: Can it be recycled? Can it be pooled? Can it be tracked? Can you help us comply with PPWR? These questions are reshaping our product design, choice of materials and delivery models.
With regard to pallet boxes, we primarily promote a structure made entirely of PP honeycomb panels. The pallet units utilise high-strength honeycomb panels, which are formed through processes such as heating and six-stage bending, as well as high-frequency ultrasonic vibration welding. Having passed the VDZ certification—a test specified by Volkswagen of Germany—they offer excellent compressive strength, a long service life, good sealing properties, dust and water resistance, low weight, flexible configuration options and the ability to be folded for return transport. The return ratio can reach 1:5. Compared to standard hollow-core panels, reinforced PP honeycomb panels offer a 30 per cent increase in bending strength and can withstand over 20,000 bending cycles. Each crate can bear a load of 300–350 kg, and the number of dynamic stacking layers can be designed according to customer requirements.
Compared to wooden crates, corrugated board crates do not require fumigation or quarantine and are 100 per cent recyclable, ensuring smoother customs clearance when exporting to Europe. For precision components in electric vehicles, we can provide anti-static liners and customised dividers to maintain battery cell positioning accuracy to within ±0.2 mm.
With regard to pallet racks, we manufacture strictly in accordance with the VDA 4500 standard. Developed by the German Association of the Automotive Industry, this standard employs a modular design compatible with two base dimensions—1200 × 800 mm (European standard) and 1200 × 1000 mm (ISO)—forming a universal and poolable system. Its aim is to achieve resource conservation and improved logistics efficiency through standardised, automatable and ergonomically designed containers, whilst ensuring safe transport and load protection. Furthermore, it facilitates flexible and space-saving return transport of empty containers through pooling and cross-manufacturer compatibility.
The containers we manufacture are compatible with mainstream ranges. One model features a single-wall design, offering up to 25 per cent more loading capacity than traditional containers. Reinforced with polypropylene, it is fitted with an ergonomic bottom handle and side handles, has a stacking depth of 15 mm, and features vertical grooves and positioning holes to ensure compatibility with automated conveyor systems. All containers include designated areas for card pockets and labels, and support electronic identification.
For heavy components, we utilise a combination of thick-walled thermoformed liners and foldable metal frames for packaging. This solution incorporates technologies such as a load-bearing and rotational support design for the insert structure, three-dimensional positioning and contour-matching recognition for components, and a Z-axis positioning mechanism to prevent component movement. It fully utilises the flexibility of the thermoformed insert units and the load-bearing capacity of the steel frames to transport large, heavy components, achieving a packing ratio of up to 1:3. Typical applications include transmission assembly racks, front subframe racks and door racks. The labelling system complies with the ODETTE protocol, facilitating automated identification by customers.
The EU’s Packaging and Packaging Waste Regulation (PPWR, Regulation (EU) 2025/40) came into full force in 2026. This regulation replaces the 1994 Packaging Directive and applies directly to all 27 EU Member States, leaving no scope for differing interpretations by individual countries. For the automotive sector, the PPWR makes no distinction between consumer packaging and industrial packaging – the same set of rules applies whether to goods on supermarket shelves or to protective packaging for gearbox housings shipped from Tier 2 suppliers to OEMs. In 2023, the B2B sector in Germany generated approximately 9.5 million metric tonnes of packaging waste, with the automotive sector accounting for a significant proportion of this.
The key dates are as follows: 11 February 2025 – the PPWR comes into force; 12 August 2026 – the first set of binding requirements, including EPR registration, material labelling and compliance with design standards; from 2023, all packaging must be recyclable, and specific plastic packaging must contain a minimum proportion of recycled material; requirements are to be progressively tightened in phases by 2040.
For the ‘other plastic packaging categories’—including transport packaging such as corrugated plastic crates and plastic pallets—a 35 per cent recycled content requirement will apply from 2030 onwards. Transport packaging must also meet requirements such as being at least 40 per cent reusable, having a void ratio of no more than 50 per cent, and meeting Grade A/B/C recyclability standards.
For us, this is both a challenge and an opportunity. We are currently focusing on three areas:
1. Promoting single-material design. Using all-PP or all-PE in place of composite materials facilitates disassembly and recycling. The PPWR’s requirements regarding recyclability are making it increasingly difficult to justify the use of complex mixed-material packaging; this trend is forcing us to consider disassembly and recycling pathways right from the product design stage.
2. Increasing the proportion of recycled content. We are developing bio-based HDPE solutions and recycled PP formulations to meet the mandatory requirement for a 35 per cent recycled content by 2030. At the same time, in line with the EU’s target of a 90 per cent recycling rate for collapsible pallet boxes by 2027, we are optimising material formulations and recycling processes.
3. Incorporate QR codes/RFID tags into the packaging. PPWR requires that reusable packaging be fitted with standardised, open digital data carriers that meet regulatory requirements for such carriers. For customers, choosing us means securing a compliant packaging solution in advance.
European OEMs are placing increasing emphasis on pooling and recycling. Approximately 90 per cent of packaging waste from Renault Group’s factories is recycled, and some five million standardised, reusable packaging sets are currently in use across Europe, Turkey and Morocco. Over the past nine years, Volkswagen’s Autoeuropa plants have implemented 724 packaging optimisation measures, reducing cardboard waste by 30 per cent and plastic waste by 47 per cent per vehicle, resulting in cumulative savings of 454 tonnes of cardboard and 69 tonnes of plastic, and cost savings of approximately 7 million euros. The reusable packaging management system deployed by CEVA Logistics for the automotive supply chain has eliminated 22,000 tonnes of cardboard waste and reduced CO₂ equivalent emissions by 18,000 tonnes, representing a 59 per cent reduction in carbon emissions compared to single-use cardboard packaging. The CabFold Hybrid recycled plastic containers, developed by Cabka in collaboration with BMW, have helped reduce CO₂ emissions by approximately 3,000 tonnes through the use of over 10,000 containers.
In terms of digitalisation, we have established capabilities for RFID/NFC integration. Current industry solutions involve installing devices on racking and pallet cages, which, in conjunction with beacons, enable seamless indoor and outdoor positioning. These devices feature built-in vibration and impact sensors, as well as tamper-proof designs, and report any anomalies immediately; RFID or QR codes can be optionally configured as unique identifiers for each container, facilitating rapid near-field stock-taking and forklift container verification. The platform software supports functions such as location tracking, asset inventory, geofencing, route tracking and retrieval, and an alarm centre. It also integrates with other systems to enable closed-loop coordination between asset management, work orders and production line operations.
Packaging is no longer a passive carrier, but a data node in the supply chain. Customers can use it for predictive maintenance, dynamic scheduling and asset inventory. For metal carriers such as parts racks, the deployment of metal-resistant RFID tags is particularly crucial—by scanning the VIN code on the outbound delivery note and the RFID tag data on the parts rack using a handheld scanner, the two are linked; this linked information is then transmitted via Wi-Fi to the WMS system’s backend, thereby establishing a correlation between the parts information and the RFID tag data.
Market data indicates that the European market for reusable packaging is on a steady growth trajectory. In 2025, Europe accounted for approximately 27–30 per cent of the global automotive packaging market, with a projected CAGR of 4.0–4.6 per cent between 2026 and 2034. Within the reusable packaging segment, Europe holds approximately 35 per cent of the global market share, with Germany leading the way with a regional share of 24.6 per cent, closely followed by the United Kingdom and France. Automotive manufacturing is the largest application sector for reusable packaging, accounting for 28 per cent of the market value in 2025. Just-in-time (JIT) production protocols require precise sequencing of components, and standardised reusable containers are the key means of achieving this.
The global pallet box market is projected to reach US$698 million by 2032, with Europe being the key growth region. Our competitors include IPL Schoeller, Loscam, Georg Utz, Cabka and ORBIS, whilst the European company KRONUS dominates the pallet box manufacturing sector. Our strengths lie in: Chinese manufacturing costs, compliance with European standards and rapid customisation. We currently supply the L-GLT series of pallet boxes and VDA racks to overseas automotive OEMs and Tier 1 suppliers.
It is worth noting that PPWR is changing the rules of the game in the export market. From 12 August 2026, the total content of the four heavy metals—lead, cadmium, mercury and hexavalent chromium—in packaging must not exceed 100 mg/kg when subject to random checks by EU customs; from 2030, all packaging placed on the EU market must meet recycling classification requirements. This means that packaging suppliers lacking the capacity to comply will gradually be phased out of the market, whilst manufacturers who have proactively established compliant production capacity will gain a structural advantage.
Looking ahead, we will continue to develop in three areas:
Bio-based and high-recycled-content materials. The use of recycled PP and bio-based HDPE in the manufacture of pallet boxes will accelerate in order to meet the PPWR’s strict requirements regarding the proportion of recycled content. We are working with materials suppliers to develop formulations that meet the 35 per cent recycled content requirement without compromising mechanical properties.
Expansion of pooling services. Extending from high-volume powertrain components to a wider range of interior parts and electronic components, the predictable per-shipment costs offered by pooling services continue to hold appeal for Tier 1 logistics managers.
The integration of smart packaging and AI. Pallet boxes and racking systems will become key data sources for predictive maintenance and dynamic scheduling within the supply chain. By deploying IoT sensors and AI analytics, we can help our clients transition from ‘passive stock-taking’ to ‘proactive scheduling’.
Palletised containers and material racks are no longer mere consumables, but strategic assets within the automotive supply chain. We are committed to being the manufacturer behind our European customers who ‘gets the containers right’—not only by producing products that meet VDA standards, but also by delivering packaging solutions that comply with PPWR requirements, support the circular economy and incorporate digital capabilities.
