Fife-based pallet producer Scott Timber Group has taken a giant step towards its turnover target of £50m by 2008 with the acquisition of long-established, south-east England manufacturer Combine Pallet Co Ltd for around £5m.

Managing director John Scott also confirmed to TTJ this week that his company hopes to announce two further acquisitions before the end of April.

The purchase of Combine Pallets makes Scott Timber “one of the top pallet-making companies in the world”, it claimed. The deal increases the group’s annual turnover from £20m to more than £32m, while taking its production capacity for new and recycled pallets to 9.3 million per year and its total workforce to 430.

Combine Pallets will continue to service what Mr Scott described as “a fantastic cus-tomer base” built up over 35 years. At the same time, the company’s two manufacturing operations at Grays and the Isle of Sheppey would strengthen Scott Timber’s presence in an English market currently accounting for 70% of its business. It would allow the group “to look at adding to the product range, including other packaging products”, although Mr Scott also stressed the importance of “consolidation and improving service”.

&#8220It’s about volume and increasing efficiency.
”

Scott Timber managing director John Scott.

Through the deal, Scott Timber acquires Combine’s UK licence to manufacture EU-standardised pallet sizes “which are favoured by ex-porters”, thus helping to “drive future expansion into Europe”.

The group’s other pallet-making operations are in Ro-syth, Fort William, Barry, Flint, Burton-upon-Trent and Gravesend. Mr Scott acknowledged pressure on pallet prices but said his plants were running “flat out” and “trading well”. He added: “It’s about volume and increasing efficiency.”