Taking advantage of its existing manufacturing infrastructure, Litco International, Inc. is jumping into the wood block market with what it believes is a better block due to the unique properties of its process.
Since its beginning in 1962, Litco International, Inc. has been guided by Christian principles and has emphasized environmentally sustainable, quality products. The company’s Inca™ process specializes in the processing of wood fiber and forming it into 3-dimensional shaped products made with a resin binder, under high heat and pressure. The first plant opened 40 years ago in Dover, Ohio. A second plant opened in 1989 in Sardis, Mississippi, to expand its geographic reach.
“Until this year, we have compression-molded all of our products,” explained Gary Sharon, executive VP, Litco. The company’s products include engineered nestable wood pallets for one-way and export shipping, as well as core plugs for rolled goods industry applications such as paper, film, and foil. “We have had a desire to expand our capabilities by adding an extrusion process for a number of years, but had not found any opportunities that fit our expertise.”
Domestically produced wood composite pallet blocks offer ease of automated pallet assembly
During 2018, however, Litco experienced an increase in phone calls. Customers were looking for composite wood blocks for manufacturing one-way, and export solid-wood pallets. Those calls prompted the company to dig deeper to understand the opportunity.
“Based on our market study, we found that the demand for composite blocks in the U.S. market is enticing, but not large enough to justify a new, expensive facility with all the necessary support equipment, and the land to make them in North America,” he said. “However, it makes perfect sense for us to add extrusion lines to make the blocks in our existing facilities. This is because we already have the infrastructure and 40 years of “know-how” to process the wood fiber efficiently.”
Litco decided to add an extrusion line to make Engineered Extruded Wood™ blocks because extruded wood blocks offer advantages over compression molding for making this product. Full-time production of the blocks is expected to begin at the Dover, Ohio plant in the second quarter of 2020.
A point of performance differentiation from other composite wood blocks is that the company intends to produce denser pallet blocks. The blocks will exceed the density typically available from international sources. The higher density will reduce flaking while improving durability and nail retention.
Engineered wood blocks eliminate some issues associated with timber blocks, explained Page Clayton, packaging sales engineer. “Wood has a different strength property in each direction,” he said. “So being able to re-orient the wood grain or wood fiber in a more uniform configuration allows us to improve select mechanical properties.”
Engineered wood blocks offer many other benefits. Because they come “ready for assembly,” there is no waste, and no additional labor or equipment is required to size them. Dimensional accuracy and consistent quality also facilitate automated assembly.
Litco’s Inca engineered molded wood pallets provide worry-free one-way shipping, distributor programs available
Litco’s engineered molded wood pallets are ideal for one-way domestic and export shipping. They are typically priced in between new and rebuilt used pallets and have been performance tested at the Virginia Tech Center for Unit Load Design. A variety of attributes make them an excellent fit for specific markets. Attractive features include certified sustainability, nest-ability, uniformity, size options, lack of fasteners, high stiffness, low moisture content, and ISPM-15 compliance.
“When the high performance is considered, they are a great value when compared to both new and rebuilt one-way pallets,” Clayton said. “At the moment, even with the increased tariffs, we have seen demand for a pallet that is export ready and trouble-free. There has been an increase in demand for a consistently uniform pallet or a pallet with no deck board gaps. The pallet as a material handling unit is only as limited as the supply chain it travels through.”
Litco sells the majority of its pallets and core plugs directly to the end-user. However, the company offers a distributor program for its pallets. “We will drop ship to the distributor’s customer,” Sharon said. “However, the most successful distributors are those that purchase in full truckloads, receive into their inventory, and resell and deliver in LTL lots to regional customers.”
Environmental certifications help address sustainability concerns of customers
Litco addresses the needs of customers looking for sustainable products. The company holds certifications for being both sustainable and USDA Biobased preferred. In addition, and all of its engineered wood products are ISPM-15 compliant.
“When we searched for a company to certify our products as sustainable, we chose the “Cradle to Cradle Certified™ Sustainable” certification by MBDC because of its international reputation as an expert in the field,” Sharon explained. Litco was also persuaded by the variety and reputations of other companies certified under the Cradle to Cradle program.
“At Litco, we believe that God created the Earth, men and women were created in the image of God and He calls on us as stewards to protect it,” Sharon continued. “Therefore, our focus is on offering products that are environmentally sustainable.”
People are critical to Litco’s manufacturing excellence, a company guided by Christian principles
Litco’s manufacturing process relies on a high level of automation and lean manufacturing techniques. “Our manufacturing model stresses the priorities of safety, quality, production, shipping accuracy, and on-time deliveries,” said Dale Hart, executive VP, Inca Manufacturing. “It is according to this model that all members of the manufacturing teams are hired, trained and developed.”
Hart emphasized, however, that people are the reason for the company’s long-standing success. The plants are operated on the program of employee centered leadership, which focuses on each team member’s gifts and behaviors. The program works to create an environment that is ideal for each employee, and mentorship techniques are tailored to the individual’s needs. “We realize that as the workforce transforms due to generational differences, intensive training is required to accomplish understanding and development of both existing long-term employees and new hires,” he said.
The company has also introduced community outreach into its manufacturing culture. In 2018, Inca Manufacturing authored and developed an Industrial Manufacturing curriculum with the State of Mississippi for high school students. This program is now a reality and is in its second full year as a state-certified vocational education program at South Panola High School in Batesville, Mississippi.
While new products and advanced manufacturing capabilities continue to set Litco apart, it remains grounded in the Christian principles that have guided it since its inception in 1962. The company is led daily by its motto, “With God All Things Are Possible” – Matthew 19:26.
According to Gary Trebilcock, Litco’s President and COO, “Litco International Inc. was created on a foundation of faith. Stemming from our commitment to Godly principles, we begin every day in prayer and recognize that this is not ‘our business,’ but it is God’s business.”
Trebilcock added, “It is our intent at Litco to bless our people, our suppliers, our customers and to be a lighthouse to everyone else that we touch personally or through the business. We come to work every day with a purpose, and we demonstrate by our performance that a company founded and operated on biblical principles can be highly successful.”
Pallet companies looking to offer additional packaging products, such as Inca pallets or plugs or use the new blocks in block pallet construction, should contact Litco today at 855-800-1833 or visit www.litco.com.
