In Germany, the toilet paper industry is sounding the alarm this winter

In Germany, the toilet paper industry is sounding the alarm this winter

In Germany, the toilet paper industry is sounding the alarm this winter

One of the most famous toilet paper manufacturers in the country, Hakle, is struggling to survive. The sector is bearing the brunt of rising gas and transportation prices.

Toilet paper could end up in Germany. The German paper industry warns of possible bottlenecks in the supply of this essential product for all families. The main cause of this concern is to be found in the decline in Russian gas supplies to Germany.

In the event of a gas shortage, it would no longer be possible to produce enough toilet paper“, clearly warns Martin Krengel, vice president of the association”The paper industry“, Explaining to the German weekly Focus That “it takes a lot of gas to produce it“. Energy accounts for 30% of the cost of producing this product. Germany had already experienced a shortage of toilet paper at the start of the Covid-19 health crisis and, in the face of the rush on this product, distributors were were forced to ration the sale, with the possibility of buying a package per person.

The famous German toilet paper manufacturer Hakle is the industry’s first victim today. The Düsseldorf-based company, which is nearly 100 years old, applied in early September to undergo self-administered insolvency proceedings. Under discussion, the sharp rise in the prices of raw materials and energy. The company underlines thisthe massive increase in the cost of raw materials, energy supply and transportit was not sufficiently passed on to consumer prices in supermarkets or pharmacies. Beyond the concern about a possible shortage of gas, the explosion of its price is therefore already weighing on the sector, with the difficulty for operators to pass this cost on to the final consumer. Added to this is the explosion in the price of paper pulp and transport.

“Huge cost pressure”

The paper industry has been sounding the alarm on this delicate situation since March. “The entire paper industry is under enormous cost pressuresaid Gregor Geiger, chief executive of the paper industry association. “In this situation, it is important for paper producers to be able to pass on their higher costs to retailers.“, He warns, adding that producers have regularly temporarily stopped production in recent months since”production no longer paid“.

As for Hakle, in the implementation of this procedure, the management of the company remains on board but is temporarily supported by restructuring experts. The general manager of the company Volker Jung wanted to be confident, in an exchange with the German newspaper Lebensmittelzeitung: “Self-management gives us the flexibility and speed to sustainably reorganize our business and reposition it entirely in the interest of our employees, customers and creditors. We are convinced that this repositioning will be successful in this difficult situation of energy crisis which can be defined as historic. “The salaries of the 225 employees are covered by the Federal Employment Agency’s insolvency allowance for the months of September to November 2022 inclusive. Important customers and partners of the company have already shown their support.

In terms of company size, Hakle, with its recent annual turnover of almost 80 million euros, is behind other large suppliers such as Wepa, Essity or Kimberly-Clark. In total, there are nearly ten manufacturers in Germany producing around 750,000 tons of toilet paper per year across the country, the Paper Industry Association reports.

In France, the situation does not seem much more encouraging. Toilet paper has been among the most inflationary products for several months. In August the price of this product increased by 12.43% compared to August 2021. Paul-Antoine Lacour, General Delegate of the French Union of Cardboard, Paper and Pulp Industries (Copacel), had already alerted in the middle June, the threat of a shortage of toilet paper, but also paper towels and handkerchiefs. “For lack of sufficient energy, factories should then stop producing”he warned.

Leave a Reply

Your email address will not be published.