Suzano and Kimberly-Clark have announced a US$3.4 billion joint venture focused on manufacturing, marketing and distributing tissue products such as toilet paper, napkins, paper towels and facial tissues in over 70 countries.
Suzano will acquire a 51% interest in the new entity, with Kimberly-Clark holding a 49% interest. Suzano will pay Kimberly-Clark US$1.734 billion in cash for its 51 percent stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments.
Closing of the transaction is contingent on approval by regulatory and other governmental authorities; fulfillment of customary conditions precedent for transactions of this nature; and completion by Kimberly-Clark of a corporate reorganization of its Consumer Tissue and Professional Business unit, among other things. The transaction is expected to close in mid-2026 and involves approximately 9,000 employees.
The new business will be a company incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue a year.
The assets to be included in the new joint venture generated net sales in 2024 of approximately US$3.3 billion. 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.
In similar news, Toscotec and Essity recently announced the completion of the ‘world’s first’ tissue machine running solely on geothermal steam at their Kawerau site in New Zealand, seeking to enable the tissue industry’s transition from fossil-based to renewable energy. The rebuilt tissue machine has apparently achieved a significant reduction in carbon emissions associated with its production, due to replacing natural gas burners with a geothermal drying system.
Earlier this year JUNG invested in HP’s Indigo 200K digital printing press, claiming to save on time and setup costs for short-run, customizable collections of its branded tissue paper and gift wrap for luxury applications. The machine can reportedly print up to seven colours in ‘vibrant’ colour quality with ‘sharp’ detail and a ‘premium’ finish.
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