Pallet recycling: how to recycle pallets sensibly

For a company, pallet recycling is much more than just a way to get rid of surplus pallets. Done properly, it is a practical part of managing your warehouse, logistics and material flows. When used pallets are sorted in good time, with pallets in good condition sent for reuse and broken ones for recycling, warehouse space is freed up and usable material goes back into circulation.

At many companies, pallets gradually pile up in corners, in the yard or at the back of the warehouse. Some of them are still usable, some need repair and some are clearly ready to be scrapped. That is why pallet recycling is best seen as an ongoing practical process, not as an occasional clean-up operation.

What does pallet recycling mean in practice?

Pallet recycling does not just mean shredding an old pallet for its material. In practice, the most sensible order is often this: first assess whether the pallet can be reused as it is, then consider whether it is worth refurbishing, and only after that move on to actual material recycling.

Whether you are allowed to burn pallets and when an old pallet counts as waste is covered in a separate article.

This also makes sense from the company’s point of view. A pallet in good condition or one that can be refurbished may still be perfectly usable. Only when a pallet is no longer fit for use or repair is material recycling the next logical step. This way, wood is not taken out of circulation too early and usable pallets are used for as long as possible.

Why is pallet recycling worthwhile?

Pallet recycling pays off above all for practical reasons. When surplus, broken or unnecessary pallets are not left lying around in the warehouse or the yard, space is freed up for other uses. At the same time, the company gets a better view of which pallets it really needs to keep and which it does not.

Recycling also pays off because not all pallets are of equal value. Some used pallets can be sold, some can be refurbished and some can be sent for wooden packaging recycling. When this is done in a controlled way, the end result is far more sensible than treating all pallets as the same kind of waste.

When should a pallet be recycled?

A pallet should be sent for recycling when it no longer has any sensible use in the company’s own operations. This may mean, for example, that the pallet is broken, surplus pallets have built up in the warehouse, needs have changed or there are so many pallets that they start taking up space unnecessarily.

A decision to recycle does not automatically mean that a pallet is completely unusable, however. Many pallets may be of no use to one company but still fully functional in another application. That is why pallet recycling should always separate usable, repairable and end-of-life pallets from each other.

How does the pallet recycling process work?

A working recycling process usually starts with going through the pallets. The first step is to separate them by condition. One group consists of pallets in good condition that can be reused as they are or sold on. The second group consists of pallets that need repair or refurbishment. The third group consists of pallets that are no longer fit for use and are sent for material recycling.

Once the pallets have been separated, the next step is to decide whether the company handles the transport itself or uses a partner that buys used pallets, collects them or forwards end-of-life pallets for the right treatment. In practice, this is often the easiest way, because sorting, circulating and removing pallets then stay under control without overloading the company’s own day-to-day work.

Can used pallets be sold rather than just recycled?

Yes. This is often one of the most important things that companies realise too late. Not all surplus pallets are waste. Some of them may still be usable and have a buyer or a new application waiting for them.

Suomen Lavacenter buys used pallets, sells recycled pallets and collects pallets by agreement. This makes pallet recycling easier in practice, especially for companies that accumulate a lot of used EUR, FIN, one-way or other pallets.

When is a pallet worth refurbishing?

Not all broken pallets are ready for scrapping yet. If the pallet’s structure is mostly sound and the damage is limited, refurbishment can be a sensible option. This applies especially to a high-quality, widely used pallet type whose service life can be extended by repairing it.

EPAL, the European Pallet Association, stresses in its own material that for euro pallets, reuse and repair are an important part of the cycle before actual material recycling. This supports the practical idea that every pallet should be used for as long as possible before it is taken out of circulation completely.

What should you do with broken pallets?

Broken pallets should first be checked to see whether they can still be repaired. If a pallet is only partially damaged, it may well be suitable for refurbishment. If the structure is badly broken, the pallet is no longer safe to use or it is otherwise unsuitable for reuse, it belongs in material recycling.

Suomen Lavacenter’s website also has separate content on selling broken pallets, which fits well into this practical process: first assess whether the pallet can still be put to use, then consider selling or refurbishing it, and only after that remove it from circulation for good.

Do pallets count as wooden packaging for recycling?

Yes. SUMI, a Finnish packaging producer responsibility organisation, lists pallets, box pallets and other platforms as well as frames as recyclable wooden packaging. This is an important starting point when considering where end-of-life pallets belong as material.

At the same time, it is important to note that companies’ wooden packaging is not handled in the same way as household packaging waste. Rinki, the organisation that runs Finland’s Rinki eco take-back points for household packaging, points out that companies’ packaging does not belong in these household collection points; instead, companies arrange their own waste management. This is essential practical information for any company looking for the right way to handle pallet recycling.

How should a company organise pallet recycling?

The best solution is usually to make pallet recycling a regular part of managing the warehouse and yard. Instead of removing pallets only when space runs out, it is worth agreeing on a clear practice: where pallets are collected, how they are sorted and when they are sent on.

In practice, this can mean, for example, that intact pallets are kept in your own circulation, surplus but usable pallets are sold or collected, and end-of-life pallets are sent for wooden packaging recycling. When the process is clear, the company avoids usable and end-of-life pallets getting mixed up in the same pile.

How does regular pallet recycling benefit the warehouse?

Above all, regular pallet recycling brings order. When surplus pallets are not left in the yard or at the back of the warehouse, space is freed up for its proper use. Safety also improves, because broken or untidy pallet stacks are not left in walkways or work areas.

Pallet recycling also helps a company see more clearly how many pallets it really needs. At many companies, pallets start to accumulate unnoticed, even though actual use no longer matches the quantity. When recycling is handled in a controlled way, purchasing and circulating pallets also become more sensible.

Is pallet recycling just an environmental issue?

No. It is also a logistical and financial issue. Recycling is certainly part of responsible business, but from the company’s point of view it is often first and foremost a way to keep material flows in order. When usable pallets stay in circulation and end-of-life pallets are removed in good time, the warehouse works better and handling goods becomes easier.

This is an important reason why pallet recycling should be planned as part of everyday operations and not left as an occasional clean-up. In practice, well-managed recycling is part of efficient logistics.

When should you use a partner for pallet recycling?

Using a partner is often sensible when a lot of pallets build up, they accumulate regularly or the company has no sensible way of its own to handle sorting, collection and further processing. This is especially useful when some of the pallets can still be reused or sold, and it makes no sense to treat all of them simply as waste.

The advantage of an operator like Suomen Lavacenter is that the same partner can help both when you buy new and used pallets and when you want to sell your used pallets or have them taken out of circulation. This makes the process simpler for the company.

What should you remember about pallet recycling?

The key idea is this: not all used pallets should be treated the same way. Some can be reused, some refurbished, some sold on and some sent for wooden packaging recycling. The earlier these differences are recognised, the better pallet circulation works.

Pallet recycling is therefore not just an end point. It is a chain in which reuse, refurbishment, sales and material recycling complement each other. When the process is built sensibly, the company gets more out of the same pallets and warehouse management stays in better shape.

Summary: pallet recycling should be handled in a planned way

Pallet recycling should be seen as part of a company’s normal operations. When pallets are sorted by condition, usable pallets are kept in circulation and end-of-life pallets are sent for the right treatment, warehouse space is freed up and materials are put to better use.

If your company accumulates used, surplus or broken pallets, the most sensible solution is rarely to throw everything onto the same pile. A better approach is to find out which pallets can still be used, which can be sold and which should be recycled as wooden packaging.

Need help with pallet recycling or getting rid of used pallets? Suomen Lavacenter helps you assess which pallets are worth keeping in circulation, which ones it can buy from you and which should be sent for recycling.