Corrugated manufacturers have long paid others to move their product. One machine wants to change that arithmetic.
For a long time, corrugated board manufacturers paid third-party companies to transport their products. One machine is set to change this economic equation.
“Tell me honestly: will I really save any money?”
This question was asked by a visitor to the ixs-pal®️ demonstration center in Leitershausen—a small Bavarian town where ixs-pal, together with its partner PCA Roboter- und Verpackungstechnik GmbH, has established a permanent site to showcase the Pallegator system in action under real-world conditions.
Rustem Karimov, CEO and founder of ixs-pal®️, hears this question often. And, it seems, he genuinely enjoys it.
“I really like that question,” he says. “It was precisely that question that drove us, ten years ago, to create the Pallegator system.”
Video: The ixs-pal corrugated pallet is tested on a strapping and pallet insertion line, showing reliable performance, stability and the ability to handle demanding packaging operations.
First, the numbers
A mid-sized European corrugated board plant ships products on tens of thousands of pallets annually. A new wooden Euro-pallet costs between 5 and 15 euros, depending on specifications, the market, and order volume. In addition to standard pallets, the plant also has to purchase non-standard pallets, which are several times more expensive.
A corrugated board plant consuming 50,000 or more pallets annually spends between €250,000 and €750,000 on purchasing them. That sum quietly dissolves into the logistics budget, rarely undergoing rigorous analysis or scrutiny.
A corrugated board pallet from ixs-pal costs roughly one-third to one-half the price of a comparable wooden pallet. And it can be produced on-site, in the required quantities and dimensions, using material the company already has on hand.
However, Mr. Karimov does not view this merely as a cost-cutting exercise. He frames the issue differently: who exactly reaps the profit?
The answer turned out to be far more significant than the question itself.
“The money pallet manufacturers used to make from your business,” he says, “is money you can now earn yourself.”
A corrugated board manufacturer that installs the Pallegator system gains the ability to offer pallets not only for its own logistics needs but also as a standalone product, thereby creating an entirely new revenue stream.
That is just the first aspect. There is a second one.
Over time, some of the corrugated plant’s customers may decide to use board pallets instead of wooden ones in their own operations and install the same equipment themselves. That same customer then becomes a steady consumer of additional corrugated board. Demand stabilizes and becomes predictable, and the supplier’s revenue shifts from one-off transactions to a stream of regular income. In other words, helping a client set up their own pallet production does not undermine existing business relationships—it strengthens them.
This model is well known to industry professionals. It underpins the “Box on Demand” concept, where the equipment remains the property of the corrugated board manufacturer while the client pays only for the material used. Pallegator applies a similar, franchise-like approach to pallet production.
“The question isn’t how much you save,” says Mr. Karimov. “The question is what kind of new business can be built around a single unit like this.
The green argument nobody asked for
There is another advantage that is rarely mentioned. Instead of storing finished pallets, a company using the Pallegator stores only flat corrugated board blanks—significantly reducing the need for warehouse space and simplifying pallet management considerably.
The Pallegator’s compact footprint also allows it to be integrated directly into the packaging process, automating not only the formation of the shipping unit but also the pallet’s assembly—enabling a “Palletizer + Pallegator” workflow.
Using wood to manufacture pallets intended for transporting corrugated packaging never quite made sense. Corrugated board is already available on-site, is recyclable, and fits naturally into any sustainability strategy.
“Companies usually have to spend money to become more eco-friendly,” notes Mr. Karimov. “With the Pallegator, that isn’t necessary.”
The obvious question is cost
The load-bearing capacity—up to 1,000 kg—is documented. But the full picture on profitability: unit production costs in a serial manufacturing setup, return on investment for a specific enterprise, sales margins—depends on volumes, board specifications, and the requirements of the transport and warehousing infrastructure. For these figures, it is best to consult the company’s representatives in Leitershausen directly.
That is precisely the purpose of the demonstration center.
For generations, corrugated board manufacturers have defined their business by what they load onto trucks. Yet, as it turns out, a far more interesting question concerns what lies beneath that load—and who profits from its placement.
corruga.expert
