German toilet paper production is under such pressure from the European gas crisis that the country may face a shortage of the product. Some companies have already declared insolvency or cut production due to skyrocketing energy prices, as industry leaders call on the government to introduce price caps.
“From what we hear, this crisis is likely to be more severe for manufacturing industries than Covid was,” Carsten Rolle, the head of energy and climate policy at the BDI business association, told the Financial Times on Friday.
With mounting fears of power shortages and rising energy costs amid reduced gas deliveries from Russia, Essity – which owns brands such as Zewa, Libresse, and Lotus – says it has already had to raise prices by as much as 18% and is considering alternative sources of fuel.
Meanwhile, other toilet paper makers, such as the Dusseldorf-based Hakle, which has operated since 1928, have started declaring insolvency, claiming that soaring energy prices, high pulp costs, and transportation expenses have made their businesses financially unviable. Read more…