European plastic pallet manufacturers Cabka and Innova Packaging System (IPS) have merged under the newly-founded Cabka Group, in a bid to improve their market positions.

According to IPS, the Cabka and IPS labels will remain intact, until a joint brand is announced.

Cabka Group director and management spokesperson Ramon Hole said they aim to grow together organically by way of a range and continuous expansion.

"For example, we are going to set up a production line complete with recycling plant for mixed plastics in the vicinity of Ypres (Belgium)," Hole said.

Cabka has a presence in Germany (Weira, Berlin), North America (St Louis) and Spain (Valencia), while Belgium-based IPS (Ypres) serves the Benelux countries with its focus on logistics, as well as the UK, Ireland, France and Spain (Zaragoza).