Suzano joins forces with Kimberly-Clark to forge US$3.4B global tissue powerhouse

NETHERLANDS — Brazilian pulp giant Suzano has partnered with U.S. tissue manufacturer Kimberly-Clark to establish a US$3.4 billion joint venture focused on manufacturing and distributing tissue products across more than 70 countries.

The deal, announced Thursday, marks a major move by both companies to strengthen their global reach and long-term growth strategies.

Suzano will acquire a 51% stake in the new Netherlands-based entity for US$1.7 billion, while Kimberly-Clark will retain 49%.

The venture encompasses 22 manufacturing facilities and 9,000 employees spread across Europe, Asia, the Middle East, South and Central America, Africa, and Oceania.

Kimberly-Clark’s operations in the U.S., along with existing joint ventures in Mexico, South Korea, and Bahrain, will remain independent of the deal. The transaction is expected to close by mid-2026.

More than 40 regional brands from Kimberly-Clark’s international family care and professional segments will be transferred into the new company.

Suzano will also license well-known global brands such as Kleenex, Scott, Cottonelle, Viva, WypAll, and Kimberly-Clark Professional to the joint venture.

The move builds on Suzano’s 2023 acquisition of Kimberly-Clark’s Brazilian tissue assets and fits with its strategy of expanding into scalable, cost-efficient businesses. Suzano says the deal enhances its operational efficiency and global footprint in consumer tissue markets.

For Kimberly-Clark, the partnership is a key component of its long-term growth and productivity plan unveiled last year.

The strategy aims to generate over US$3 billion in savings while focusing on expanding its core personal care brands.

After the joint venture closes, nearly two-thirds of Kimberly-Clark’s net revenue will come from personal care, strengthening its profit margins and return on investment.

The company is also looking to reduce its exposure to volatile global input costs. Kimberly-Clark expects to incur US$300 million in tariff-related costs this year, driven mainly by U.S. duties on Chinese goods.

CFO Nelson Urdaneta noted that 80% of U.S. production costs are domestically based, cushioning the impact.

However, he said the company is already working to restructure supply chains to mitigate tariff effects, aiming to offset one-third of the costs this year and fully adapt by 2026.

This venture follows Kimberly-Clark’s recent pledge to invest over US$2 billion in modernizing its North American operations, signaling a dual focus on both global expansion and domestic resilience.

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