AUSTRALIA
Asians dump tissue government decides

The Australian government has found certain Asian exporters of tissue paper guilty of dumping it in the 120,000 ton Australian market at up to 40% below "normal" prices, thus causing damage to local manufacturers. The finding follows a year-long investigation by the Australan Customs Service.

Two local makers, Kimberly-Clark Australia and SCA Hygiene Australasia, say that after Woolworths awarded a tender in May 2006 to a local importer, Paper Force, their prices on supermarket shelves were undercut by up to 20% in the A$700 million ($500 million) market. Woolworths declined to give Customs full details of its toilet paper tender arrangements and says the success of its brand reflects a superior product at an acceptable price.

Most of the toilet paper used by Woolworths comes from two APP plants, Gold Hong Ye Paper in China's Suzhou and PT Pindo Deli in Indonesia. A Woolworths spokeswoman said yesterday the toilet paper supply contract ended in August and a new one was being devised to include environmental sustainability specifications.

The Customs investigation found that Pindo Deli's products are 33-38% below "normal" prices and Gold Hong Ye's 5- 10% below.

The targeted importers had until late January to appeal against the decision before penalties are applied to the toilet paper they bring in. A spokesman for APP in Australia says it is likely it will appeal the decision.

The dumping penalties mean it is likely that prices on supermarket shelves will rise.