The acquisition of Kimberly-Clark’s tissue assets will increase Suzano’s Brazilian tissue operations to a manufacturing capacity of around 280,000 TPA.
October 28, 2022
Kimberly-Clark has decided to divest its tissue paper operations in Brazil. Suzano SA, the Brazilian pulp maker, has signed a deal to acquire the tissue assets. In a filing, Suzano informed that the main asset in the deal is a tissue production plant located in São Paulo state. The facility has a production capacity of around 130,000 Tonnes Per Annum (TPA).
According to the agreement, a new company by Suzano will manage the assets, as well as manufacture and distribute the tissue products, such as paper towels and napkins of Kimberly-Clark (KC Brazil). The value of the deal has not been disclosed.
The acquisition will increase the Company’s Brazilian tissue operations to a manufacturing capacity of around 280,000 TPA. As per the deal, Suzano has also taken over the brand “Neve” along with the rights to use international brands currently managed by KC Brazil.
Suzano is the world’s leading producer of market pulp, with 11 million tonnes of BEKP market pulp capacity. Also, the pulp maker is the leading manufacturer of writing & printing paper in Brazil, as well as paperboard, with a total production capacity of 1.4 thousand tonnes of paper.