Why Plastic Pallets Are the Business to Understand at Manufacturing Stock Range International (ASX:RAN)

Sonal Goyal

18 September 2026 12:17 PM AEST

Why Plastic Pallets Are the Business to Understand at Manufacturing Stock Range International (ASX:RAN)

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Plastic pallets are central to understanding Range International Ltd (ASX:RAN) because they represent the company’s primary Manufacturing business.

Range produces Re>Pal branded plastic pallets using its proprietary ThermoFusion manufacturing process. The company manufactures pallets from recycled plastic materials and supplies customers across Indonesia and the broader Asia-Pacific region.

Manufacturing operations are conducted in Indonesia through PT Repal Internasional Indonesia. The company’s Business model combines industrial manufacturing with the use of recycled materials, positioning its products within the broader Circular Economy sector.

Plastic pallets are used across Supply chains for industries requiring durable transport and storage solutions. Compared with traditional timber pallets, plastic alternatives are often assessed based on factors such as durability, hygiene, reuse potential and operating efficiency.

The shift towards pallet rental

A key development for Range International has been its expansion from pallet sales into pallet rental.

The company began delivering rental pallets in 2026 as it sought to develop a Recurring Revenue stream alongside its manufacturing operations. A rental model allows companies to generate revenue from repeated use of the same Assets rather than relying only on individual product sales.

However, rental operations also require Investment in pallet fleets, asset tracking systems and logistics management.

The pallet rental industry globally operates through reusable asset models, where companies manage fleets of pallets through customer networks. For Range, building this capability requires balancing fleet expansion with Capital requirements and customer demand.

To support rental fleet growth, Range secured an AUD 454,000 Loan Facility in June 2026. The facility had a 24-month term, carried an Interest Rate of 18% per annum, and was secured against rental pallets and manufacturing equipment.

Funding and growth strategy

The loan facility was provided by professional and sophisticated investors, including existing shareholders. The company stated that related parties, directors and substantial shareholders did not participate in the funding.

Range allocated the funding towards expanding its rental pallet fleet and supporting the development of the rental business model.

The cost of funding is an important consideration for the company. An interest rate of 18% per annum represents a significant financing expense, meaning returns generated from the rental fleet will need to support both operating costs and financing obligations.

The Economics of pallet rental depend on factors such as utilisation rates, customer retention, fleet management costs and the useful life of each pallet. The company’s ability to generate consistent returns from rental assets will be a key Factor in assessing the success of this strategy.

Risks and what to watch

Range International faces risks associated with scaling a manufacturing and rental business.

Building a rental fleet requires upfront capital investment, while profitability depends on securing customers and achieving efficient asset utilisation. Financing costs, operational execution and market Demand will influence the performance of the rental model.

The company’s operations in Indonesia also involve exposure to local business conditions and currency considerations.

Key areas to monitor include growth in the rental pallet fleet, revenue contribution from rental activities, Debt management and overall pallet sales performance.

Future financial reports will provide insight into whether the rental strategy is translating into sustainable revenue growth and whether the company can successfully expand beyond traditional pallet manufacturing.

Key Insights

Range International (ASX:RAN) is focused on manufacturing recycled plastic pallets while developing a pallet rental business model. The company’s future progress will depend on rental fleet growth, customer adoption, operational execution and effective management of funding requirements.

FAQs

Q: What does Range International manufacture?

A:Range International manufactures Re>Pal branded plastic pallets using recycled plastic materials.

Q: Where does Range International operate?

A:Range International manufactures its products in Indonesia and supplies markets in Indonesia and the Asia-Pacific region.

Q: Why is Range International expanding into pallet rental?

A:The rental model aims to create recurring revenue opportunities by allowing customers to use reusable pallet fleets.

Q: What are the key risks for Range International?

A:Key risks include the capital requirements of fleet expansion, financing costs, customer adoption and operational execution.

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