RM2 International SA Re Agreement (7540K)

TIDMRM2

RNS Number : 7540K

RM2 International SA

26 September 2016

26 September 2016

RM2 International S.A.

RM2 and Jabil collaborate on North American production of innovative pallets

RM2 (LSE-AIM: RM2), the sustainable composite pallet innovator, is pleased to announce that it has entered into a strategic manufacturing agreement with Jabil for the mass production of the RM2 BLOCKpal pallet in Mexico. The agreement with Jabil, a global leader in digital manufacturing and supply chain solutions, will allow RM2 to scale production more efficiently to market demand. Initial production is expected to be deployed in Q1 2017. Pallets produced at the facility will be deployed with RM2's customers in North America.

This agreement is complementary to the deal announced in April this year for the production of pallets by Zhenshi Holdings Groups Ltd in China, allowing RM2 to address more rapidly the growing volume demands of its clients. Production costs at the two facilities are expected to be similar.

John Walsh, CEO of RM2, commented: "When we announced the contract manufacturing agreement with Zhenshi, we re-affirmed our commitment to production in North America. Today's agreement means that RM2 will have a well-balanced manufacturing capability with efficient, low-cost and modern production bases in both Asia and North America. This will enable us to mitigate cost fluctuations and flex production more efficiently between two highly qualified contract manufacturers and better meet the demands of our customers.

"As previously stated, all production for 2017 is already earmarked to be deployed with our customers in North America. These deployments will include outright sales, rentals and long term lease agreements. We will update the market with regards to the specifics of these deals throughout Q4."

"In keeping with Jabil's pledge to positively impact the world in which we live and operate by addressing climate change and increasing resiliency, we are pleased to collaborate with RM2 in producing an eco-responsible pallet, thereby bringing an environmentally friendly solution to the logistics and supply-chains industry," said Keith Cochran, Vice President, Jabil Global Business Units.

For further information, please contact:

 
                                  [phone] 
 RM2 International S.A.            1412 
 John Walsh, Chief Executive 
  Officer 
  Jean-Francois Blouvac, Chief 
  Financial Officer 
 
                                  [phone] 
 RBC Capital Markets               4000 
 Tristan Lovegrove 
  Pierre Schreuder 
 Ema Jakasovic 
                                  [phone] 
 Citigate Dewe Rogerson            9571 
 Simon Rigby 
  Rob Newman 
  Ellen Wilton 
 

Notes to Editors

RM2 International S.A. specialises in pallet development, manufacture, supply and management to establish a leading presence in global pallet supply and improve the supply chain of manufacturing and distribution businesses through the effective and efficient use and management of composite pallets. It is quoted on the AIM market of the London Stock Exchange under the symbol RM2.L.

For further information, please visit www.rm2.com

Jabil is an electronic product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 28 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL". Further information is available on Jabil's website: jabil.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 26, 2016 02:01 ET (06:01 GMT)