The Global Demographic Tailwind

[DewDiligence]

KMB Cuts Ribbon on Russian Huggies Plant

http://www.reuters.com/article/idCNLDE64R1J120100528

›Fri May 28, 2010 11:12am EDT

MOSCOW, May 28 (Reuters) - Kimberly-Clark Corp (KMB) will next week open its first Russian personal care products plant, which will become its biggest in Eastern Europe and allow it to boost exposure to the high-growth market.

The company, known for Kleenex tissues and Huggies diapers, said on Friday its investments in the plant's first phase which will produce diapers has totalled $170 million.

Emerging markets are key for the consumer product makers, as they have largely saturated developed markets like the United States, and local manufacturing allows them to offer more affordable products as they are not subject to import duties.

Kimberly-Clark, whose main rival in the diapers category is Procter & Gamble (PG), said the plant will manufacture products for Russia, Belarus and Ukraine, and would supply other Eastern European markets in the future.

The company began to build the plant in 2008 to support its growing consumer business in Russia and in Eastern Europe, and a local ministry said overall investments in the plant would amount to $490 million.

The factory, which currently employs 200 people, is located in the town of Stupino southwest of Moscow.‹