Toilet paper, as we call it in the US, is made in much the same way that it always has been made (it's been manufactured for roughly 120 years).
There have been innovations in the types of toilet paper -- rolls that are scented, or colored or such. But the process has remained pretty much the same.
The toilet paper itself is made from paper, not directly from wood, the way writing paper is, for example. The paper is pulped up and run through a series of rollers to dry it, soften it, and put it on rolls.
Please refer to the link for a complete description of the process.
Paper is a thin layer of fiber, and, in the case of many sorts, composition presents wood fiber,too . Paper in continuous roll is produced in this way: wood fibers flow in a wire sieve, which causes the fibers to align parallel to the direction of shaking. As the water flows, "fabric" is able to stand, then is passed through some drums, to remove excess water, then rolls over drying rollers which remove the remaining water. The paper obtained is then treated, smooth and wound.
Marketing of printed toilet paper experienced a real boom in the autumn of 2001, when a California company came on the market with rolls on which were printed the faces of some of dictators and terrorists. At the $ 5 price for a set of four reels, North American entrepreneur then sold more than 10,000 pieces, both through its own store and online. In 2002, a company in Germany imitated him somewhat, launching on market, printed toilet paper with the text of mysteries (the Germans went on the idea that the toilet is "one of the few areas where humans still read"). And then, several advertising agencies in UK began to use, mostly as a medium for messages of their clients, toilet paper.
Ink used for prints must have a special formula that would not attack the skin, to be organic, non-toxic, biodegradable and does not stain. In general, there are used water based inks, because of the possibilities of recycling waste water resulting from the process of printing.