The manufacturer of Kleenex tissues is the latest to be tied up in Donald Trump’s tariffs, with Kimberly-Clark, one of the world’s largest paper and pulp manufacturers—and also manufacturer of Huggies nappies—investing US$ $2 billion to ramp up US-made manufacturing.
It comes as the paper giant—trusted in 175 countries and essential to 25% of the world’s population—last week claimed that the tariffs would have a US $300 million hit on company profits – that is, despite less than 10% of US product imports coming from Canadia, Mexico and China.
In a statement provided by Kimberly-Clark on Friday, the investment, staggered over five years, is the largest of its type for over three decades – with ground to break later this month on two facilities: a new advanced manufacturing facility at Warren, Ohio, and a new distribution centre at Beech Island, South Carolina.
Kimberley-Clarke is looking to close loops in US supply chains
On the new Warren, Ohio facility, Russ Torres, president of Kimberley-Clarke North America, said the massive facility represents “a strategic bet” on the American consumer: “It (also) reflects the confidence we have in our long-term growth plans and complements a broad range of commercial and R&D investments we have been making throughout the business.”
It will be located close to 117 million consumers in the Northeast and Midwest and spread across more than 1 million square feet of manufacturing space, helping to drive the company’s fastest-growing personal care categories. “We welcome Kimberly-Clark’s first investment in Ohio,” said Ohio Governor Mike DeWine. “Kimberly-Clark has advanced production facilities worldwide, and the fact that they are now coming to Trumbull County says a great deal about the area’s workforce and Ohio’s leadership in rebuilding manufacturing supply.”
Creating a Simpler, Faster and More Hi-Tech Logistics Network of the Future
At the same time, a new regional distribution centre in Beech Island, South Carolina, will create the infrastructure necessary to support future scale and unlock network efficiencies. Located next to the company’s largest manufacturing facility, the automated DC will significantly increase the site’s ability to direct-ship and streamline its distribution footprint it will leverage advanced robotics, AI-powered logistics systems, and high-density automated storage to dramatically improve operational efficiencies and fast-track speed to market.
“Thanks to South Carolina’s exceptional business climate, global leaders like Kimberly-Clark Corporation are finding lasting success in our state,” South Carolina Governor Henry McMaster said. “The company’s commitment to investing in South Carolina is worth celebrating, and we congratulate Kimberly-Clark and Aiken County on this milestone.”
“These investments in North America represent the strong progress we are making on our end-to-end supply chain transformation, specifically in network optimisation,” said Kimberly-Clark Chief Supply Chain Officer Tamera Fenske. “By bringing together manufacturing and distribution under one automated roof, we are building a more agile, responsive, and resilient manufacturing network to enhance service levels for our retail partners and contribute to our gross productivity plan. Beech Island is the largest site in our network, so this new investment will drive impact at scale,” she added.
The two announcements come one year after Kimberly-Clark launched its company-wide transformation initiative – its most comprehensive in its 150-year history. The company said the investment underscores how it is executing against its strategy to deliver on global growth targets, with North America positioned as a key growth driver. Construction for both facilities is scheduled to begin in May 2025 and is expected to be completed over the next two to three years.
- To learn more about the impact of Donald Trump’s tariffs on the global supply of timber, paper and forest-based products, click here for Wood Central’s special feature.
