Kimberly-Clark restructures pulp, tissue business
Jan 25, 2011. Kimberly-Clark Corp plans to get out of the business of making the pulp used in its paper products, closing several plants, as it copes with rising costs for oil, fiber and other commodities.
Jan 25, 2011. /Lesprom Network/. Kimberly-Clark Corp plans to get out of the business of making the pulp used in its paper products, closing several plants, as it copes with rising costs for oil, fiber and other commodities, as Reuters informed Lesprom Network.
Kimberly-Clark said the restructuring, the latest in a string of overhauls at the Dallas-based company, mainly affects the $6.5 billion consumer tissue business, which makes goods such as tissues, paper towels and toilet paper.
Getting out of pulp manufacturing should improve the profitability and return on invested capital of its consumer tissue and K-C Professional units, the company said.
Kimberly-Clark will streamline, sell or close five or six manufacturing facilities, including a pulp and tissue plant in Everett, Washington, and its two Australian facilities that make pulp and tissue. It will also move some production to lower-cost locations.
The company also plans to stop making certain products, mainly nonbranded ones.
Kimberly-Clark did not say how many jobs it would cut in the overhaul.