Kimberly-Clark to build 1st manufacturing plant in Russia

Kimberly-Clark Corporation, a leading global health and hygiene company, on September 12 announced plans to construct its first manufacturing facility in Russia to support its growing consumer business there and in Eastern Europe. The multi-million-dollar facility will be built in phases and will produce personal care and tissue products under the well-known Huggies and Kleenex brands.

Accelerating growth in Developing and Emerging markets is one of Kimberly-Clark's targeted growth initiatives. The company has placed particular emphasis on Russia and five other key countries that it refers to as BRICIT – Brazil, Russia, Indonesia, China, India and Turkey.

"Russia is a strategically important market for K-C due to its rapid economic growth and the long-term potential of its health and hygiene categories," said Tom Davis, president of Kimberly-Clark's Middle East, Eastern Europe and Africa group. "Local manufacturing is a key element of our strategy."

Construction at the site will begin this month with start-up of the facility scheduled for early 2009. The first phase of development will provide for site preparation, construction of manufacturing buildings, offices, warehousing and roads. The facility will be located in Stupino, approximately 60 miles (100 kilometers) southeast from Moscow, and will occupy an area of about 100 acres (40 hectares).

The project will create approximately 150 new jobs in Stupino by the middle of 2009, with additional jobs being added as increased manufacturing capacity comes on line over the next few years. Construction on the site and the need for local support services are also expected to boost employment in the Stupino area.

"We are excited to announce the building of this manufacturing facility," said Jonathan Tarr, Kimberly-Clark managing director for Eastern Europe. "This significant investment demonstrates Kimberly-Clark's long-term commitment to the Russian market.

"This facility will allow us to increase speed of delivery and service to our rapidly growing consumer base and maintain a leadership position in this market. We chose Stupino for its developed infrastructure, highly qualified workforce and excellent location for accessing the major cities of Russia and Eastern Europe."

Consumer spending and retail sales in both Russia and Eastern Europe have been growing at double-digit rates for the past several years and are projected to grow at high single-digit rates for the next decade. The region has a burgeoning middle class that shows strong appreciation for high-quality branded products.

Kimberly-Clark entered the diaper category in the region in 1996 with its Huggies brand and followed with a major launch of Kleenex branded tissue products in 2005. Today, K-C's brands are among the market leaders in the countries of Eastern Europe.