The cost of pallet hire could soon be on the way down following the entry of a new competitor into the UK market. Chep had been the only pallet pool operator in the UK for more than 20 years, but French multinational LPR has now set up operations in the UK, as first exclusively revealed by The Grocer (March 9, p14). It claims that it is at least 10% cheaper than current market rates, as well as providing a more convenient service. It has teamed up with logistics firm Taylor Barnard and is already supplying a number of grocery companies with pallets, including Jordans, and others are trialling the system. It has won acceptance for its red pallets from all the major multiples. It says it is planning to invest more than £50m in the UK over the next five years, and is aiming for a market share of 20-25%, similar to its share in France, Spain and Portugal. Olivier Pages, LPR Group deputy general manager said: "We expect Chep will react and that is part of our argument to clients." Pages said that from his experience of competing with Chep in markets on the continent, LPR expected the other operator would reduce its prices. But he warned that LPR was well placed should a price war result: "We have the weapons to fight this type of war. "We have lower fixed costs, we are customer driven, and we can exploit synergies in our operation." CHEP marketing manager Gwenda Bason said: "CHEP does not wish to comment at this time." {{NEWS }}