Solaris Claims Lockout from Pulp Mill Bidding

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Solaris Paper, an Australian operated and managed distributor of toilet and tissue paper products and an affiliate of Asia Pulp & Paper (APP), reportedly is accusing Kimberly-Clark Australia (KCA) of locking it out of the bidding for KCA’s Tantanoola Pulp Mill in Australia. KCA earlier this year announced that it would close the pulp mill by the end of this year and lose 65 employees if it is unable to sell the troubled operation before New Year 2012. Acting chief executive of Solaris Paper, Steve Nicholson, said the pulp mill could have potential but KCA is refusing to allow Solaris into negotiations.

"I think it's competitive ego gone crazy, but anyhow I don't wish to create any angst, but we would certainly like to have a look at the assets and as we do have aspirations in Australia, maybe there's a fit for us," Nicholson was quoted in an ABC News report.

KCA spokesman Dr. Ross Hearne said in an AdelaideNow report that the accusations are misinformed. "We were approached by third parties on behalf of Solaris and at this stage though we intend to complete negotiations with some other possible bidders," he said in the report.

Dr Hearn denied Solaris Paper's claim it had been "eliminated" from the process. He said that KCA had not had any direct contact with the company but had advised its brokers it was not interested in proceeding with an offer.. In a statement, Solaris Paper's acting chief executive Steve Nicholson said the company was not given a reason "for being eliminated from negotiations before the talks progressed to the point of an actual financial offer" and it had not been given a chance to submit a competitive bid.

Meanwhile, according to the ABC News report, the forestry union has welcomed the move by KCA to not negotiate with Solaris Paper. According to the news report, the union said that Solaris' parent company, Asia Pulp and Paper, has a history of slashing jobs and would not have the best interests of Australian workers at heart.