ECJ EUROPEAN Cleaning Journal

Suzano and Kimberly-Clark have announced a US$3.4 billion joint venture focused on manufacturing, marketing and distributing tissue products in over 70 countries.

The new business will include 22 manufacturing facilities located in 14 countries across Europe, Asia, the Middle East, South America, Central America, Africa and Oceania.

Tissue products to be produced by the new entity will include toilet paper, napkins, paper towels and facial tissues. Suzano will acquire a 51 per cent interest in the new entity, which will include the assets of Kimberly-Clark's International Family Care and Professional. Kimberly-Clark will hold the remaining 49 per cent.

Since creating IFP as a separate business in 2024 Kimberly-Clark claims to have enhanced its margins and improved market share. The combined capabilities of Suzano and Kimberly-Clark is expected to reduce total delivered product costs and will supply branded and private label offerings to consumers and customers.

Suzano will pay Kimberly-Clark US$1.734 billion in cash for its stake when the deal is complete, which is contingent to a number of conditions including approval from regulatory and other governmental authorities.

Kimberly-Clark will retain its consumer tissue and professional businesses in the United States and its interests in existing joint ventures in Mexico, South Korea and Bahrain among other countries.

Kimberly-Clark's chief strategy, business development and administrative officer Jeff Melucci said: "Suzano is a leader in its field, whose deep industrial manufacturing and fibre expertise complement Kimberly-Clark's leading brands and world-class commercial capabilities. We look forward to working closely with Suzano to ensure a smooth transition to this exciting venture for IFP, our customers and other stakeholders to deliver on the promise inherent in the business."