September 23, 2022
18:34
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Not only the explosion in the price of gas, but also significantly more expensive paper is leading to a deep crisis among toilet and kitchen paper manufacturers. “We don’t benefit from panic.”
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German toilet paper manufacturer Hakle put his books aside earlier this month and asked for protection against his creditors. The family business is a name like a watch in the industry. It succumbed to the high prices of raw materials and energy that it couldn’t deliver quickly enough.
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The essence
- The high costs of energy and paper are plunging toilet paper manufacturers into a serious crisis.
- German manufacturer Hakle has already sought protection from its creditors.
- In our country, toilet paper manufacturers regularly turn off their machines.
- The industry does not rule out the possibility of shortages occurring here and there.
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In our country the situation is slightly less critical, but there is certainly a crisis. ‘This is hell. For us and for our customers “, says an insider on condition of anonymity. In our country, the Italian Sofidel is the largest seller of toilet paper with brands such as Nalys and Cosynel. The group has a production plant in Duffel. American Kimberly Clark is number two in Belgium, followed by Essity, which is the largest in Europe with brands like Edet and Okay and has a paper mill in Stembert, Liège.
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The manufacturing costs of paper handkerchiefs, handkerchiefs and toilet and kitchen paper are usually half the price of the paper pulp. It has increased by about half in the past year.
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Paper machines
At the same time, making toilet paper is an energy-intensive activity. Paper machines blow hot air at a temperature of 350 degrees to get the water out of the paper pulp. This continuous process runs on gas and is stopped for maintenance a maximum of once or twice a year.
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In a normal situation, energy determines 10 to 15 percent of the cost of a roll of toilet paper, “but due to the explosion in the price of gas, it has risen to 50 percent. We have no control over most of the cost price of toilet paper, pulp and energy, ‘it seems.
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Since the summer of last year, we have already reached our fifth price increase.
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Furthermore, the added value is small and there is enormous price pressure from the private labels of supermarkets, which are also produced by the large toilet paper producers. “If you can save a lot on costs now, you haven’t done your homework well in recent years,” says the specialist, noting that the only way to survive is substantial price increases. “Since the summer of last year we have already reached the fifth price increase”.
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Vod
Consumers regulate their behavior. They are opting even more massively for private labels. And in the case of kitchen towels and paper handkerchiefs, supermarket customers are leaving them more and more on the shelves. The rag and the cloth handkerchief become an alternative. Sales of kitchen towels fell 30 percent from last year. Toilet paper is considerably less price sensitive. There are no alternatives to this.
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Manufacturers run their machines a little slower than usual, making production more energy efficient. ‘Compare that to driving at 100km / h on the highway instead of 120km. It’s much cheaper. “
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As a result, less toilet paper is produced. Some manufacturers go a step further and close their paper machines up to ten days a month, even in our country. And if Hakle actually fails, that production capacity must also be absorbed.
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If everyone produces slower or stops the machines for a few days a month, we will have shortages.
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This makes production tighter than ever. “If everyone produces slower or stops the machines for a few days a month, shortages arise,” says the insider.
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‘We have no interest in panic, because then you end up in hamster situations. It’s bad for everyone. ‘Toilet paper is a very local product. You rarely transport it more than 300 or 400 kilometers from the factory. Because you mainly transport air. But if everyone turns off the machines, I do not rule out that in some regions there will be shortages at certain times “, says the expert in the sector.
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