International top 40

Nonwovens Industry, Sept, 2008 by Karen Bitz McIntyre, Ellen Wuagneux

The big news this year for the Partnership Products business centered on its incorporation into K-C Professional at the close of 2007. "The move has helped our business quite a bit," stated Mr. Sneyd. "We are much bigger and part of a global business now." He went on to describe the consolidation as a very positive move for both businesses due to a variety of beneficial synergies.

When it comes to manufacturing facilities, all of the company's nonwovens plants are running at full capacity levels without downtime. The decision to close its Neenah mill was reversed last August as a result of continued demand. "We plan to keep this mill running, as it meets too much demand that can't be taken up by other mills," Mr. Sneyd said. K-C had announced in July 2006 that it would sell or close the facility by the end of 2008. As planned, the mill continues to operate those assets used in the production of synthetic materials for K-C's consumer and B2B products.

K-C's core roll good market sales, driven by unique nonwoven processes, all reported satisfactory performance and solid year-over-year growth. In filtration and delivery systems, K-C saw both organic and new customer growth while the sorbents and personal care areas expanded mostly as a result of customers' rapid growth. "All four of these market segments are a true joy to work in," commented Mr. Sneyd.

K-C has also been busy recently targeting new markets with its external nonwovens business. "We are working on novel concepts that are quite impressive," he said. "We have already created proto-type products that are going through the patent protection process." Mr. Sneyd declined to offer any other details on the innovations.

In terms of its global assets, K-C has kept busy on several fronts. In South Africa, the company plans to purchase the remaining stake in its South African subsidiary, Kimberly-Clark of South Africa, from The Lion Match Company (Proprietary) Limited, a wholly-owned subsidiary of FASIC Investment Corporation Limited. K-C currently owns slightly more than 50% of K-CSA. The transaction, which is subject to approval by the Competition Commission, is expected to close in 2008. K-CSA has operated as a joint venture between K-C and Lion Match, or predecessor companies, since 1955.

"Our increased ownership in this successful affiliate bolsters K-C's presence in the country and enhances our growth potential in sub-equatorial Africa," said Tom Davis, president of Kimberly-Clark Middle East, Eastern Europe and Africa. "We have an excellent leadership team in place and this transaction gives us greater flexibility in how we execute our strategies for this region."

On the South American front, K-C plans to invest $60 million in Peru, becoming the first big U.S. company to say it will expand in the country since it signed a free-trade pact with the U.S. in December. K-C expects to double production in the country by expanding existing diaper and paper plants, making Peru a regional center, supplying Chile, Bolivia and Ecuador. Peru's economy, one of the fastest growing in the world, grew some 8.5% last year.