Brazilian pulp producer Suzano has announced the acquisition of Kimberly-Clark’s tissue business in Brazil for an undisclosed sum. The company informs in a shareholder filing that the core component of the business is a tissue mill located in Brazil’s São Paulo state. The site has a capacity of around 130,000 tpy of tissue paper.
Suzano will float a new company to manage the business assets as well as produce and market tissue products such as toilet paper, paper towels, napkins, pocket tissue and other products. The company expects to conclude the transaction in the first half of 2023. The acquisition is part of Suzano’s strategy to grow in the Brazilian sanitary paper market. The company is currently building a new paper mill in the country’s Espíritu Santo state. Capacity of the new mill will be ramped up in the two years following its commissioning to 60,000 tpy of tissue.