Kimberly-Clark to Increase Production Capacity in Europe for Huggies Diapers

Business Wire, Nov 27, 1996

DALLAS--(BUSINESS WIRE)--Nov. 27, 1996-- Kimberly-Clark Corporation today announced a multimillion dollar investment in its diaper manufacturing facilities at Barton-upon-Humber, England, to meet growing demand for Huggies diapers in Europe.

The investment in new production equipment is the largest since the $250 million plant first began operations in late 1993. The facility's production capacity will increase by more than 30 percent, with start-up expected within the next 15 months. The expansion also will add about 80 jobs to the plant's present employment of more than 550.

John A. Van Steenberg, president of Kimberly-Clark Europe, said, "We are delighted with the way Huggies diapers have been received in Europe. In less than three years, Kimberly-Clark has gone from having no presence in the European diaper market to being the number two diaper producer.

"Compared with last year, our sales volumes have increased more than 70 percent," Van Steenberg said. "In the U.K. and France, for example, our market share now accounts for more than 25 percent of the $1.2 billion in diaper sales in those countries."

Kimberly-Clark entered the diaper market in Western Europe in January 1994 and now markets Huggies diapers in the United Kingdom, Holland, France, Belgium, Ireland, Finland, Russia and Israel. With last month's acquisition of Zisoft Bobi a.s., a Czech Republic diaper company with a manufacturing plant in Jaromer, Kimberly-Clark also markets Bobi economy diapers in the Czech Republic and Slovakia and Huggies Standard economy diapers in Russia, Romania, Croatia, Slovenia and the Baltic states.

Within the last year, Kimberly-Clark has made two major product improvements to Huggies diapers in Western Europe that have helped drive sales there to record highs. First was the introduction of a cloth-like outer cover and stretchable tabs, and secondly, the addition of a new fastening system.

The improved product's success in the United Kingdom was recognized recently when Mother and Baby magazine, Britain's leading parenting publication, presented the Huggies brand its Gold Award for the best diaper line.

Kimberly-Clark is a leading tissue and personal care products manufacturer. The company is the European market leader in both consumer and away-from-home tissue products with such well-known brands as Kleenex facial tissue and Scottex and Andrex bathroom tissue. Its personal care products include Huggies diapers, Kotex feminine care pads, Pull-Ups training pants and Depend incontinence care products. In 1995, European sales of consumer products accounted for $2.7 billion of Kimberly-Clark's more than $13 billion in revenues.

CONTACT: Kimberly-Clark

Tina Barry, 972/281-1481

or

Mike Masseth, 972/281-1478