Kimberly-Clark announces plans to invest over $2 Billion to Expand US Manufacturing, Accelerate Innovation and Fuel Growth

Rhea-AI Summary

Kimberly-Clark (NYSE: KMB) has announced a $2 billion investment plan over the next 5 years in its North America business, marking its largest domestic expansion in 30 years. The investment includes two major projects: a new advanced manufacturing facility in Warren, Ohio, and an expansion of its Beech Island, South Carolina site with an automated distribution center. The initiative is expected to create over 900 new jobs in industrial automation and advanced manufacturing. The Warren facility, spanning over a million square feet, will serve the Northeast and Midwest regions, reaching approximately 117 million consumers. The Beech Island expansion will feature an automated Regional Distribution Center with advanced robotics and AI-powered logistics systems. Construction for both facilities will begin in May 2025, with completion expected within 2-3 years. This investment supports KMB's transformation initiative and aims to enhance manufacturing capacity for brands like Huggies, Kleenex, Depend, Scott, and Cottonelle.

Positive

• Major $2 billion investment demonstrates strong commitment to growth and market expansion
• Creation of 900+ new highly skilled jobs in industrial automation and manufacturing
• Strategic facility locations to serve 117 million consumers more efficiently
• Implementation of advanced robotics and AI-powered logistics systems to improve operational efficiency
• Enhanced manufacturing capacity for fastest-growing personal care categories
• Network optimization through combined manufacturing and distribution facilities

Negative

• Significant capital expenditure may impact short-term financial flexibility
• 2-3 year construction timeline means delayed return on investment
• Execution risks associated with large-scale facility construction and technology implementation

Insights

Financial Analyst

KMB's $2B domestic investment signals confidence in North American growth, enhancing production capacity, innovation capabilities and operational efficiency with strategic site placements.

Kimberly-Clark's $2 billion investment over five years represents its most significant domestic expansion in three decades. This capital allocation decision signals strong confidence in North American growth prospects amid rising demand for its consumer staples portfolio. The dual investment approach is particularly noteworthy: a new advanced manufacturing facility in Warren, Ohio will increase production capacity, while the automated distribution center in South Carolina will optimize supply chain efficiency.

The strategic placement of the Ohio facility provides access to approximately 117 million consumers across the Northeast and Midwest regions, which should reduce time-to-market and transportation costs. Meanwhile, the Beech Island expansion integrates advanced robotics and AI-powered logistics systems with the company's largest manufacturing site, creating a vertically integrated operation that will streamline distribution processes.

This investment aligns with the company's broader "Powering Care transformation journey" launched last year, indicating these projects are part of a cohesive long-term strategy rather than isolated expansion initiatives. The creation of over 900 jobs in industrial automation and advanced manufacturing points to significant operational scale-up, though the emphasis on automation suggests continued focus on operational efficiency.

The multi-year implementation timeline (construction beginning May 2025 with completion over 2-3 years) means investors should expect gradual rather than immediate impact from these investments. However, the commitment to both capacity expansion and efficiency enhancement positions Kimberly-Clark to support growth in its fastest-growing personal care categories while potentially improving operational metrics over the medium term.

Supply Chain Strategist

KMB's $2B investment modernizes its supply chain with strategic facility placements, advanced automation, and AI-powered logistics to boost efficiency and innovation.

Kimberly-Clark's $2 billion supply chain transformation represents a sophisticated network redesign that addresses three critical operational dimensions simultaneously: geographic optimization, vertical integration, and technological advancement.

The Warren, Ohio manufacturing facility exemplifies proximity-based strategy by positioning production capabilities within reach of 117 million consumers across the Northeast and Midwest. This geographic optimization will likely reduce outbound logistics costs while enhancing service levels through faster fulfillment. More importantly, the facility's focus on "proprietary manufacturing technologies" suggests it's designed as both a production and innovation hub for the company's faster-growing personal care categories.

Meanwhile, the Beech Island distribution center expansion demonstrates vertical integration excellence by co-locating an automated distribution operation with their largest manufacturing site. This eliminates transfer steps between production and warehousing, reducing handling costs and improving inventory velocity. The implementation of "advanced robotics, AI-powered logistics systems, and high-density automated storage" represents a step-change in operational sophistication that will drive both efficiency and flexibility.

The integration of manufacturing and distribution under "one automated roof" is particularly significant as it creates a more responsive supply network capable of adapting to volatile demand patterns. By eliminating traditional handoffs between production and fulfillment operations, Kimberly-Clark is removing friction points that typically slow responsiveness while increasing costs.

This comprehensive approach to supply chain transformation positions Kimberly-Clark to achieve both innovation-led growth and operational excellence simultaneously – a difficult balance that few consumer products companies successfully maintain.

Largest Domestic Investment in Three Decades expected to create over 900 jobs

CHICAGO, May 1, 2025 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today announced plans to invest over $2 billion over the next 5 years in its North America business, marking the company's largest domestic expansion in more than 30 years. Amid rising demand for its consumer brands, which include Huggies^® diapers, Kleenex^® tissue, Depend^® incontinence products, Scott^® kitchen towels, and Cottonelle^® bath tissue, these investments will significantly enhance its US manufacturing capacity, accelerate its innovation plans and support its ambitious growth targets.

This broad-based investment program centers on two transformative projects: a new advanced manufacturing facility in Warren, Ohio, and an expansion of its Beech Island, South Carolina, site with a state-of-the-art automated distribution center. It also includes additional capital expenditure linked to innovation and automation upgrades across its North America supply chain network.

These projects are expected to create more than 900 highly skilled jobs in industrial automation and advanced manufacturing.

"This landmark investment represents a strategic bet on the American consumer and our ability to drive innovation-led sustainable growth for Kimberly-Clark," said Russ Torres, Group President, Kimberly-Clark North America. "It 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 as part of our Powering Care transformation journey."

Better Products, Closer to Consumers
The new facility in Warren, Ohio, strategically located in geographic proximity to roughly 117 million consumers will serve as a vital hub for the Northeast and Midwest regions.

Spread across more than a million square feet, the Warren facility will provide the capacity needed to unleash future growth for Kimberly-Clark's fastest growing personal care categories. Its proprietary manufacturing technologies will enable the creation of new and improved next-generation consumer products, rooted in material invention, product engineering, and manufacturing process innovation.

"We welcome Kimberly-Clark's first investment in Ohio," said Ohio Governor Mike DeWine. "Kimberly-Clark has advanced-production facilities all over the world, 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 the domestic manufacturing supply."

"Kimberly-Clark's decision to make its first Ohio investment in Trumbull County would not have happened without close collaboration from our partner at Lake to River as well as at the state and local level to establish a site that is attractive for both rapid development and long-term growth," said JobsOhio President and CEO J.P. Nauseef. "We all look forward to working closely alongside Kimberly-Clark as it launches its new cutting-edge manufacturing facility," he added.

Creating a Simpler, Faster and more Hi-Tech Logistics Network of the Future
Meanwhile, a new Regional Distribution Center (DC) 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. The facility will leverage advanced robotics, AI-powered logistics systems, and high-density automated storage to dramatically improve operational efficiencies and fast-track speed to market.

South Carolina Governor, Henry McMaster, said, "Thanks to South Carolina's exceptional business climate, global leaders like Kimberly-Clark Corporation are finding lasting success in our state. The company's commitment to investing in South Carolina is truly something 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 terms of network optimization," said Tamera Fenske, Kimberly-Clark Chief Supply Chain Officer. "By bringing together manufacturing and distribution under one automated roof, we are building a more agile, responsive, and resilient manufacturing network that will 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 announcement comes one year after Kimberly-Clark launched its company-wide transformation initiative – the most comprehensive in its 150-year history. The investment underscores how the company is executing against its strategy to deliver on global growth targets, with North America positioned to be a key growth driver. Construction for both facilities is scheduled to begin in May 2025 and expected to be completed over the next 2-3 years.

About Kimberly-Clark
Kimberly-Clark (NYSE: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries. Fueled by ingenuity, creativity, and an understanding of people's most essential needs, we create products that help individuals experience more of what's important to them. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. We use sustainable practices that support a healthy planet, build strong communities, and ensure our business thrives for decades to come. We are proud to be recognized as one of the World's Most Ethical Companies^® by Ethisphere for the seventh year in a row and one of Fortune's Most Innovative Companies in America in 2024. To keep up with the latest news and to learn more about the company's more than 150-year history of innovation, visit the website.

Forward Looking Statements
Certain matters contained in this news release concerning the business outlook, including our future planned investments, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them.

The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including the risk that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative and the planned future investments described in this press release (including risks related to disruptions to our business or operations or related to any delays in construction, hiring and implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets, counterparty defaults (including customers, suppliers and financial institutions with which we do business), failure to realize the expected benefits or synergies from our acquisition and disposition activity, impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing, changes in customer preferences, severe weather conditions, regional instabilities and hostilities (including the war in Israel), potential competitive pressures on selling prices for our products, energy costs, general economic and political conditions globally and in the markets in which we do business, as well as our ability to maintain key customer relationships, could affect the realization of these estimates.

The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.

[KMB-C]

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SOURCE Kimberly-Clark Corporation

FAQ

What is the size of Kimberly-Clark's (KMB) new investment in US manufacturing?

Kimberly-Clark is investing over $2 billion over the next 5 years in its North America business, representing its largest domestic expansion in 30 years.

How many jobs will KMB's new manufacturing expansion create?

The investment is expected to create more than 900 new highly skilled jobs in industrial automation and advanced manufacturing.

Where are Kimberly-Clark's new facilities being built?

Kimberly-Clark is building a new advanced manufacturing facility in Warren, Ohio, and expanding its Beech Island, South Carolina site with an automated distribution center.

When will Kimberly-Clark's new manufacturing facilities be completed?

Construction will begin in May 2025 and is expected to be completed over the next 2-3 years.

What technologies will KMB implement in its new distribution center?

The new Regional Distribution Center will feature advanced robotics, AI-powered logistics systems, and high-density automated storage for improved operational efficiencies.