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

NETHERLANDS – Brazilian pulp giant Suzano has partnered with U.S. tissue manufacturer Kimberly-Clark to establish a USD 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 USD 1.7 billion, while Kimberly-Clark will retain a 49% stake.

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 states that the deal enhances its operational efficiency and global footprint in the consumer tissue market.

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 USD 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 USD 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, which helps cushion the impact.

However, he said the company is already working to restructure its supply chains to mitigate the effects of tariffs, 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 USD 2 billion in modernizing its North American operations, signalling a dual focus on both global expansion and domestic resilience.

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