Kimberly-Clark Transfers Tissue Paper Business to Joint Venture with Suzano

Global personal care giant Kimberly-Clark has spun off its tissue paper operations into a joint venture named Arbex, co-owned with Brazilian pulp producer Suzano. Kimberly-Clark holds 49% of Arbex, while Suzano owns 51%. Arbex will now market Kimberly-Clark’s tissue brands in Israel, including Kleenex, Lily, Molt, Nicol, and Nature Reserve, which Kimberly-Clark previously distributed directly. Kimberly-Clark will continue to market its personal care products in Israel, such as Huggies diapers, Kotex feminine hygiene, and Depend adult care products.

Arbex was established in 2025 and began global operations in July 2026, with an estimated $3.4 billion in annual revenue. Liat Kider Feigin, formerly CEO of Osem-Nestle’s food division, will lead Arbex. Kimberly-Clark’s three Israeli factories in Nahariya, Hadera, and Afula, employing hundreds, will now also serve Arbex.

Kimberly-Clark’s strategic shift focuses on personal care, its largest division, as the tissue paper segment faced profitability challenges due to volatile pulp prices and lack of competitive advantage. Suzano, the world’s largest pulp producer, leverages its operational strengths through this venture. Prior to the joint venture, Kimberly-Clark separated its tissue business internally to prepare for the partnership. Suzano paid $1.73 billion for its 51% stake and holds a call option to acquire Kimberly-Clark’s share in the future. Arbex operates in 70 countries, specializing in manufacturing, marketing, and distributing toilet paper, napkins, and kitchen towels.