Suzano and Kimberly-Clark Form $3.4 Billion Joint Venture in Global Tissue Market

Suzano, the world’s largest pulp producer, and Kimberly-Clark, a major player in consumer products, have announced plans to launch a joint venture valued at approximately US$3.4 billion. The partnership will focus on the manufacture, marketing, and distribution of tissue products—including toilet paper, facial tissues, napkins, and paper towels—across more than 70 countries.

The new company, which will target growth within the global tissue market, will be 51% owned by Suzano and 49% by Kimberly-Clark. Suzano plans to pay approximately US$1.734 billion in cash at the time of closing. The transaction is expected to finalize by mid-2026, pending regulatory approvals and customary conditions.

International Production and Reach

The joint venture will operate 22 manufacturing facilities in 14 countries across Europe, Asia, the Middle East, South America, Central America, Africa, and Oceania. Combined, these sites are expected to deliver an annual production capacity of roughly 1 million tonnes of tissue products.

In 2024, the businesses being integrated into the joint venture generated approximately US$3.3 billion in net sales. The transaction will also involve the transfer of approximately 9,000 employees from Kimberly-Clark’s Consumer Tissue and Professional business unit.

Brand Continuity and Licensing

More than 40 regional tissue brands will be transferred into the new entity, while globally recognized names such as Kleenex, Scott, Cottonelle, Viva, and WypAll will remain under long-term licensing agreements. This allows the joint venture to operate with strong brand equity while Kimberly-Clark retains ownership of its global brand portfolio.

Kimberly-Clark will continue to manage its tissue business in the United States and hold interests in existing joint ventures in markets such as Mexico, South Korea, and Bahrain.

Strategic Fit for Both Companies

The joint venture is a strategic step forward for both companies. Suzano brings its core strength in pulp production and operational efficiency, while Kimberly-Clark contributes expertise in brand development, commercialization, and international operations.

This move supports Suzano’s broader goal of expanding in the global tissue market with a disciplined, value-focused approach. The company recently acquired Kimberly-Clark’s Brazilian tissue operations and is currently building a new tissue paper mill in Espírito Santo, Brazil. That facility is expected to add 60,000 tonnes of annual capacity to Suzano’s growing consumer goods segment.

For Kimberly-Clark, the deal supports its business transformation strategy by focusing resources on key markets while maintaining a strategic interest in international growth through the joint venture structure.

Governance and Future Potential

The joint venture will be incorporated in the Netherlands and governed by a five-member board, with three members appointed by Suzano and two by Kimberly-Clark. The agreement also includes a call option that gives Suzano the right to acquire Kimberly-Clark’s remaining 49% stake in the future.

This partnership is designed to ensure continuity, scalability, and operational efficiency in a fast-changing global tissue market. By combining resources, talent, and industry expertise, both companies aim to capitalize on growth opportunities while maintaining a commitment to sustainability and innovation.

If approved and successfully executed, the deal is expected to reshape the global tissue supply chain and position the new company as a major competitor in the international tissue and hygiene product sector.

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