Probe finds toilet paper 'dumping'

Probe finds toilet paper 'dumping'
Ian McIlwraith
January 2, 2009


Millions of dollars were at stake in the row. In 2007, Australians spent $728 million, or about 10¢ a day for each of us, buying 120,000 tonnes of the stuff, and that market has grown by 25 per cent in just four years.
Makers, like most users, rate toilet paper on a comfort basis. About two-thirds of toilet paper sold is premium grade — thicker and softer — and Woolies' brand grew from nothing to 6 per cent of the market in just two years.
Kimberley-Clark and SCA are also foreign-controlled, but the anti-dumping investigation found they make a sufficient amount of their toilet paper product here to qualify as locals — SCA has a factory in Box Hill that employs 460 people.
Kimberley-Clark would be better known to consumers as the maker of Kleenex and Woolies' rival "You'll Love Coles" brand in the premium market, and Wondersoft in the mid-range. SCA makes Sorbent at the premium end and Purex in the mid-range.
The investigation found that PT Pindo Deli's products were coming in about 33 per cent to 38 per cent below "normal" prices and Gold Hong Ye's at between 5 and 10 per cent below.
Those companies, and other importers, have until late this month to appeal against the decision before penalties are applied to the toilet paper brought in. A spokesman for APP in Australia said it was likely they would appeal against the decision.
The dumping penalties mean a likely higher cost of supply to Woolworths, and the probability that prices on the shelves will rise.

------------------------------------------------------------------

Just a small item, but the story behind the issue is fascinating.