PGS Group, the global manufacturer of wooden pallets, has expanded its operations into the Middle East by setting up a subsidiary in the Ras Al Khaimah Free Trade Zone.

The French and Belgian-based company said it had selected the RAK Free Trade Zone after reviewing its strategic geographical location, top-notch facilities, award-winning business set-up services and substantially lower company set-up costs.

PGS Middle East said this move will allow the business to maximise its return on investment.

“We selected the Ras Al Khaimah Free Trade Zone because it is ideally located less than an hour’s drive from Dubai and between Mena, Europe and South Asia, giving us easy access to trade flows between East and West, as well as close interaction with our current clients, and an opportunity to attract more clients,” remarked Michael Modugno, the VP and founder of the PGS Group.

“By choosing to operate in a free zone that provides less expensive warehouse space but with the same quality as others in the region, with labour accommodation on site and a full range of business support services, all free of taxation, and by providing our customers around the world with innovative solutions on the management of their packaging flows, we have assured ourselves of strong potential for development in the coming years,” he added.

Peter Fort, the CEO of RAK FTZ, welcomed the latest entry into Ras Al Khaimah’s industrial sector.

“We are pleased to host PGS Middle East at the industrial park, which is specifically tailored to meet the needs of our clients such as PGS, which do heavy manufacturing,” noted Fort.

“RAK FTZ is the prime choice for investors because we offer a business-friendly investment environment, better services, world-class facilities, and 100 per cent foreign ownership, all for lower costs than our competitors,” he added.

Founded in France in 1993 with a share capital of €25 million, PGS, now has six factories, 13 manufacturing sites and 28 pallet reconditioning sites, with an annual production of over 25 million new and reconditioned pallets.-TradeArabia News Service