Ruqayyah Snyder
Sorbent is an Australian company that has been providing toilet paper to Australians since 1952. The company has maintained its retail market share over the years and is known for its memorable Gentlest Tissue jingle from its first advertisement in 1956. In 2018, Sorbent was acquired by Asia Pulp & Paper (APP), a global tissue giant. As a result of economic challenges, APP has made the controversial decision to reduce Sorbent's production workforce at its manufacturing facilities and move some production offshore to Indonesia, impacting local manufacturing and jobs in Australia. Despite this, Sorbent remains a beloved brand in Australia, known for its softness and thickness, and continues to be a household name.
| Characteristics | Values |
|---|---|
| Owner | Asia Pulp & Paper (APP) |
| Year APP acquired Sorbent | 2018 |
| Location of manufacturing site | Melbourne |
| Size of manufacturing site | 85,000m2 |
| Location of sister company Solaris Paper's manufacturing site | Western Sydney |
| Size of Solaris Paper's manufacturing site | 18,000m2 |
| Number of job losses expected | 70 |
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What You'll Learn
Sorbent Paper Company is owned by Asia Pulp & Paper (APP)
The Sorbent Paper Company, an Australian icon, has been providing Australians with their toilet roll needs since 1952. Its memorable "Gentlest Tissue" jingle in 1956 marked the beginning of its familiarity among Australians, and its products have been a staple in Australian bathrooms ever since.
However, the Sorbent Paper Company is not Australian-owned. It is owned by Asia Pulp & Paper (APP), a global tissue giant with a significant presence in Indonesia and a unique capability that no Australian or New Zealand competitor can match. APP acquired the Sorbent Paper Company and its brands in 2018, and since then, some manufacturing has shifted to APP's main production centres in Indonesia.
This shift in manufacturing has resulted in job losses in Australia, with the Sorbent Paper Company reducing its workforce by around half at its Box Hill manufacturing facility in Melbourne, leading to approximately 70 job losses. The company has attributed this decision to challenging macroeconomic conditions, including surging energy costs, and the unreliable supply of gas in Australia.
Despite the ownership by APP, the Sorbent Paper Company remains dedicated to providing Australians with their beloved toilet rolls, as evidenced by their #SorbentAlwaysThere campaign. They continue to meet the needs of their customers by improving the softness and thickness of their tissue rolls, maintaining their long-standing relationships with retailers, and adapting to external challenges, such as those presented by the COVID-19 pandemic.
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APP's decision to move manufacturing to Indonesia
Sorbent is an Australian-owned company that was established in 1952. It manufactures toilet paper, facial tissues, and hand towels. Solaris Paper is Sorbent's sister company and has a manufacturing site in Western Sydney. Solaris Paper also sources products from its Indonesian mills, which adhere to stringent quality and accreditation requirements.
Indonesia has favorable conditions for labor-intensive manufacturing. It is the world's fourth most populous country, with a population of over 272 million, offering a vast labor pool. Indonesia's median age is 29, and 60 percent of the population is under 40. Wages in Indonesia are fairly low, with the highest monthly wage in the Special Capital Region of Jakarta at US$316 and the lowest in the Special Region of Yogyakarta at US$128. Indonesia's middle class has been growing faster than other groups, with at least 52 million Indonesians now considered economically secure.
Indonesia's economy has developed dynamically since the 1997-98 Asian financial crisis, achieving growth rates of approximately six percent. In 2020, Indonesia experienced a negative GDP of -2 percent for the first time in 20 years due to the COVID-19 pandemic. However, the decline was moderate compared to other countries in the region. Indonesia offers a viable option for businesses considering alternative markets in South Asia, particularly in consumer-related market opportunities such as retail, health, and financial services.
Indonesia is also experiencing rapid growth in its digital economy, which is expected to be valued at US$124 billion by 2025. The country has one of the highest concentrations of startups in the world, with over 2,100 startups as of 2020. Indonesia is embracing the Internet of Things (IoT) and Industry 4.0, which involve the integration of IoT and the adoption of new technologies, respectively. These technologies allow Indonesian manufacturers to stay ahead of the curve, minimize downtime, and ensure that products meet the highest standards of quality and precision.
In summary, APP's decision to move manufacturing to Indonesia is likely influenced by the country's favorable labor conditions, dynamic economic development, alternative market opportunities, and the potential for digital and technological growth. By leveraging Indonesia's advantages, APP can access a large and young labor force, reduce labor costs, tap into a growing middle class, and benefit from the country's economic growth. Additionally, Indonesia's digital economy, startups, and adoption of IoT and Industry 4.0 enhance the country's manufacturing sector, making it a key player in the latest manufacturing industry trends.
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Sorbent's commitment to Australian customers
Sorbent has been a staple in Australian households since 1952, when it set out to fulfil customers' toilet roll needs. The brand's commitment to its customers is evident in its long history of providing soft and comfortable tissue products, from toilet paper to facial tissues and hand towels.
Sorbent understands the importance of a reliable and trusted brand, especially in challenging times. During the COVID-19 pandemic, they faced raw material, labour, and truck shortages due to panic buying. Despite these challenges, Sorbent remained dedicated to providing Australians with their toilet roll needs, demonstrating their commitment to being "#SorbentAlwaysThere".
The company's campaigns, such as "Our Favourite Down Under" in 2019, showcase their understanding of the Australian market and their commitment to delivering the perfect toilet experience to homes across the country. Sorbent's products have become a familiar presence in Australian bathrooms, with their memorable "Gentlest Tissue" jingle from 1956, marking the beginning of their softness and quality becoming synonymous with Australians' daily lives.
Sorbent's commitment to its Australian customers extends beyond its products. The company has a strong presence in the local community, with manufacturing sites in Melbourne and Western Sydney. These sites not only provide jobs for Australians but also contribute to the development of the local communities.
However, recent developments have caused concern among Australians. The announcement of job losses and the shifting of some manufacturing operations offshore to Indonesia has raised questions about Sorbent's continued commitment to local manufacturing. Despite these changes, Sorbent assures its customers that it remains dedicated to providing for Australians, with toilet paper production remaining in Box Hill, Victoria. Sorbent's presence in Australian homes and communities continues to be a testament to its long-standing dedication to its customers.
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Solaris Paper, Sorbent's sister company
Solaris Paper is Sorbent's sister company. Solaris Paper is an Australian-operated and managed company that distributes high-quality toilet and tissue products throughout Australia. Solaris Paper was established in 2010 and has a state-of-the-art manufacturing site in Western Sydney, covering 18,000m2. The company is committed to supporting local community development and provides innovative kitchen and bathroom hygiene solutions for both businesses and households. Solaris Paper supplies businesses with its global brand, Livi, which is distributed in 37 countries across 5 continents. Livi is well-known in world-class establishments such as hospitals, resorts, restaurants, cafes, government institutions, corporate offices, and schools. In addition to Livi, Solaris Paper also offers Sorbent® Professional, a premium range of toilet paper, facial tissues, and hand towels that brings a touch of home to businesses.
Sorbent Paper Company, as Solaris Paper's sister company, provides consumers with tissue products for bathrooms and kitchens. The company has an established manufacturing site in Melbourne, covering 85,000m2. The Sorbent brand has been a familiar name among Australians since its establishment in 1952, with its memorable "Gentlest Tissue" jingle first airing in 1956. The company introduced a new product category, facial and towel, in 1990, and has since constantly improved the softness and thickness of its tissue rolls to meet customer needs.
Both Solaris Paper and Sorbent Paper Company have a strategic alliance with APP (Asia Pulp and Paper), a vertically integrated tissue business that owns the complete supply chain from tree to finished goods. This business model provides tremendous flexibility and management control, ensuring a sustainable supply chain with improved margin opportunities without compromising quality. Solaris Paper and Sorbent Paper Company adhere to stringent Australian and international environmental laws and only source fibre from internationally certified suppliers. The companies also have extensive independent auditing across all aspects of their supply chain, including PEFC, the largest global forest certification program.
In 2019, Sorbent created the “Our Favourite Down Under” campaign to demonstrate its product’s quality, capturing the perfect toilet experience at home with a roll of Sorbent. Despite challenges during the COVID-19 pandemic in 2020 due to raw material, labour, and truck shortages, Sorbent remained dedicated to providing Australians with their toilet roll needs. This led to the creation of the #SorbentAlwaysThere campaign, showcasing Sorbent's commitment to never cease to roll for Australia.
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Sorbent's campaigns, including #SorbentAlwaysThere
Sorbent is an iconic Australian brand of toilet paper, facial tissues, and hand towels. The company was established in 1952 and has since become a household name in Australia, known for its soft and thick tissue rolls.
In 2019, Sorbent launched the 'Our Favourite Down Under' campaign, which showcased the perfect toilet experience at home with a roll of Sorbent. The campaign highlighted the product's quality and softness, which has been constantly improved since its establishment.
In 2020, Sorbent faced significant challenges due to the COVID-19 pandemic, including raw material, labour, and truck shortages caused by panic buying. Despite these difficulties, the company remained dedicated to providing Australians with their toilet roll needs. This led to the creation of the #SorbentAlwaysThere campaign, reinforcing their commitment to never cease to roll for Australia.
In 2024, Sorbent launched a brand relaunch campaign, 'Behind Every Great Australian', created by the Melbourne independent agency Akkomplice. The campaign positioned Sorbent as a brand that is always there for Australians, no matter the occasion. The creative director of Akkomplice, Kenny Hill, described the campaign as a passionate embrace of the idea that Sorbent is behind the nation, just like their soft and strong 3-ply tissue.
The #SorbentAlwaysThere campaign serves as a testament to Sorbent's resilience and dedication to its customers, ensuring that Australians always have access to their favourite down under dunny rolls.
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Frequently asked questions
No, Sorbent is owned by the Asia Pulp & Paper (APP) giant.
APP acquired Sorbent Paper and its brands in 2018.
APP has a history of acquiring established brands and moving manufacturing to its main production centres, including Indonesia.
The acquisition has resulted in a reduction of Sorbent's production workforce at its manufacturing facilities in Box Hill, Melbourne, with around 70 job losses expected. Some manufacturing has also been moved offshore to Indonesia.
Yes, Sorbent continues to operate in Australia, with a focus on providing Australians with their toilet roll needs.
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