Norrlandspall is a leader in Sweden when it comes to trade and repair of used wooden pallets, the company handles more than 3 million pallets per year.

Norrlandspall AB is a company that has its market all over Sweden and is headquartered in Umeå. The company was created in the early 90s by CEO Henrik Morén. Since the start in 2006, Retursystem Byggpall* has contributed to reducing the amount of construction waste by more than 160,000 containers. This corresponds to just over 6 million pallets that have been reused instead of being burned for energy!

The EU Waste Directive states that by 2020, at least 70% by weight of non-hazardous construction and demolition waste must be reused, recycled or otherwise utilized.

The fixed repurchase price of the construction pallet is an important explanation for the high proportion of reuse, currently close to 70%. The fact that full compensation is paid regardless of whether the pallet is intact or broken means that it is rarely thrown in the container.

The business concept includes buying leftover or broken pallets from companies and then repairing them and selling them back to a material supplier. The main customers are Swedish construction companies and traditionally these organisations have sent leftover pallets for incineration and energy recovery. Norrlandspall offers them a more sustainable and flexible alternative where they can have a milder impact on the environment but also save money. Today approx. 50% of all pallets at construction sites in Sweden are part of Retursystem Byggpall* construction pallet.

Norrlandspall offers a fixed repurchase price for a pallet of SEK 70, no matter how broken it is. Pallets are picked up from customers regardless of geographical location in the country. In order not to get inefficient transports, there are procured transporters who drive the pallets as backfill, ie they take advantage of extra spaces that are in trucks that are driving the same route back anyways.

At the start of the company in 1991 in Luleå, there was no thought of starting a circular and sustainable company, of course. It all started with Henrik Morén seeing a profitable business opportunity. Through collaboration and listening to customers’ needs, the idea came up in 2002 to sell a service, instead of a product – and so the return system became a profitable and environmentally friendly business concept. The right incentive for reuse, which simplifies handling and provides less wear and tear. This clearly shows that circular business models generate value on many different levels and there is profitability to be gained.

CEO Henrik Morén points to the circular business model as an important factor and in recent years growth has been good due to increased awareness and a holistic view of the construction industry.

“Today, it is almost exclusively sustainability managers you talk to in the construction industry, previously it was purchasing managers and logistics managers.”

A good working environment has also been a top priority. He quickly realized the importance of retaining skills within the company and therefore invested in a good work environment that generates low staff turnover. Automation of certain tasks facilitates so more people can complete the work and that expands the recruitment base. In addition, they invest in work rotation, to reduce the risk of stress injuries. Only in Umeå are there traditional repair stations left, in the largest facility in Örebro much more is automated – but so far an experienced pallet repairer is faster at carrying out assessment and repair than the machines. Experienced staff repair 250 pallets per day, beginners start at approx. 70 pallets per day. Here it is clear that repair and reuse creates more jobs, compared to energy recovery.

* Since 2006, the construction industry, through the industry organizations Sveriges Byggindustrier, Byggmaterialhandlarna and Byggmaterialindustrierna, has been running a system for the reuse of standardized pallets in wood; Retursystem Byggpall = Return system for Construction pallets. Norrlandspall has been procured as a supplier to carry out the service.