Hygienic paper products may double in price by the end of the year compared to last September, Vajda-Papír Kft. told MTI, adding that there is no need to fear a supply shortage.
The hygiene paper company justified the change by saying that its procurement and energy costs will increase by about 100 percent this year as a result of the war in Ukraine and the energy crisis. However, only a part of the extra costs will be passed on to the consumers – they indicated, noting that the consumer price also depends on the traders.
The company’s founder and managing director, Attila Vajda, told MTI that they expect the company’s domestic and export volumes to grow only slightly this year.
He said that Hungary’s annual need for hygienic paper products is 90,000 tons, and the annual capacity of the Vajda-Papír group is 140,000 tons. Hungary’s supply of hygienic paper products is assured despite the unfavorable conditions, “there will be no shortage of toilet paper, tissues or wipes,” he declared.
He reminded us that the second factory unit was added to the paper factory of Vajda-Papír in Dunaföldvár this summer. Hungary has become capable of self-sufficiency in a new area, because the basic paper required for the production of hygienic paper products is already provided by the company – informed Attila Vajda.
He explained that the company’s raw material supply became complete with the capacity expansion. The fresh pulp, from which the basic hygiene paper is made, cannot be replaced by other raw materials, however, the price of the pulp has risen significantly. The availability of recycled paper as a raw material is limited. The pulp storage capacity completed during the factory expansion is suitable for storing 3 months’ buffer stock, and they have the option of storing 2 months’ stock of base paper. The company group achieves significant savings by producing a significant part of the hygiene base paper required for production at its Dunaföldvár plant since 2018, he explained.
Vajda-Papír was founded 22 years ago as a family business and employs around 650 employees at the group level. In addition to sales in Hungary, the company’s hygiene paper products are delivered to more than 30 countries around the world, 60 percent of the group’s total production of hygiene paper products is exported. In 2013, the company group also entered the market in Norway, and they employ more than 130 workers in their factory there.
The sales revenue of the Vajda-Papír Group increased to HUF 57 billion in 2021 from HUF 52 billion in the previous year, mainly as a result of the increase in production in Hungary. The Norwegian subsidiary contributed HUF 16.7 billion to the group’s performance
