No block in Sorbent toilet paper supply: Solaris

The owner of Sorbent toilet paper has ramped up production but says supplies can be maintained despite virus scare.

Paul Tonkin, chief executive of Sorbent owner Solaris

The chief executive of Solaris Paper, the group that owns the Sorbent toilet paper brand, has backed a commonsense approach by supermarkets and retailers of limiting customer purchases amid the current panic buying to help avoid any long-term shortages.

Paul Tonkin told The Australian Solaris had built up its supplies from last month when it heard through its affiliate companies in Asia of possible shortages in key personal hygiene products and was prepared for spikes in demand from Australian shoppers.

But he added there was no need for panic, with Solaris’s two factories in Australia as well as strong supply chains into New Zealand and Canada meaning the company was not completely exposed to any slowdown in pulp shipments from China or Asia.

“It is quite incredible to be frank, but we did see a bit of this bubbling a few weeks ago up in Asia so we had a bit of an eye on it and we were at least prepared as we amped up some of our production pre-emptively,’’ Mr Tonkin said. “But what has happening so far is unprecedented.”

Solaris is a private company and is partnered with the Indonesian multinational Asia Pulp & Paper, which is also a shareholder in the Australian arm. In 2018 it bought the Australian tissue business from Asaleo Care for $180m, handing it market-leading paper towels brands as well as No 3 toilet paper brand Sorbent.

Panic buying of toilet paper, hand towels and other personal hygiene products, that has seen products stripped from supermarket shelves by shoppers fretting over the spread of the coronavirus, has reached a fever pitch this week with Woolworths bringing in limits on customer purchases as supermarket shelves are stripped of toilet paper, paper towels and other items. It has placed huge demands on suppliers, with Solaris warning on Wednesday that the panic buying could threaten supplies.

“Concerns over the coronavirus contagion have resulted in widespread panic buying. Whilst Sorbent Paper is working to build and manage demand, its ability to maintain ample supply of its tissue products of toilet paper, facial tissues, paper towel and wipes to its retail customers will be dependent on retail offtake volumes,’’ Solaris said in a statement.

“Some products may have been depleted from shelves; replenishment should catch up, however any sustained panic buying in the volumes seen in recent days will be certain to stress supply. Stock shortage with allocations may in some cases be necessary.”

Stocks of tissues also running low.

Mr Tonkin said placing limits on the amount of toilet paper shoppers could buy was a wise move. “We certainly have been very proactive with Woolworths, Coles and Metcash the key retail partners, and we have ongoing and very senior supply-chain dialogue with them. We have all been able to mobilise very quickly a lot more product through the supply chain than was originally forecast.

“I think it is wise some of the retailers are placing limits on purchase numbers, and I think that is sensible.

“We tend to have quite a few weeks of pulp on hand that we can convert into a jumbo roll” for a finished product of tissues or kitchen towels.

“We are all running 24 hours a day at the moment and increasing our shift capacities to make sure we can be as responsive as we possibly can. It will be interesting to see how long this spike goes on for, but it will ultimately depend on whether people calm down. There is really no need to panic.”

He said Solaris’s supply chains outside China would help limit any supply issues for its production.

“We supplement a lot of that (supply from Asia Pulp & Paper) with pulp from all around the world, we have multiple sources of pulp which is helpful, we have some coming out of New Zealand, some coming out of Canada, some from Asia and these days I think the companies that (are) quite exposed are the ones really just with a China supply chain.’’