Kimberly-Clark announces US$2 billion investment to expand manufacturing in the U.S.

Kimberly-Clark, the company behind brands such as Huggies, Kleenex, Scott, Cottonelle, and Depend, has announced a US$2 billion investment over the next five years to expand its manufacturing capacity in the United States. The initiative is part of a strategic effort to strengthen the company’s domestic supply chain, in line with policies promoting local production encouraged by the U.S. government.

The plan includes two major projects: the construction of a new advanced manufacturing facility in Warren, Ohio, and the expansion of the distribution center in Beech Island, South Carolina. Additionally, the company will invest in automation, technological innovation, and modernization across its entire North American supply chain. Construction is scheduled to begin in May 2025 and be completed within three years.

With the expansion of its production and logistics capabilities, Kimberly-Clark expects to create more than 900 jobs focused on industrial automation and advanced manufacturing. These new roles will add to the company’s global workforce, which currently includes approximately 38,000 employees.

The new plant in Ohio, covering more than one million square feet, will serve as a strategic hub for the Northeastern and Midwestern regions of the U.S., which together are home to about 117 million people. The facility will focus on high-growth categories such as baby diapers and incontinence products, using proprietary technologies centered on materials engineering and manufacturing process innovation.

Meanwhile, in Beech Island, Kimberly-Clark will build a highly automated distribution center equipped with AI-based logistics systems, advanced robotics, and high-density storage. The center will be located next to the company’s largest manufacturing plant, allowing for the integration of production and distribution in a single location – boosting operational agility and delivery speed to retailers.

“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, President of Kimberly-Clark North America.

The move also reflects the broader trend of reinforcing local manufacturing in the United States, driven by factors such as tariff policies and shifts in the global supply chain landscape. While most of Kimberly-Clark’s products are already manufactured domestically, this initiative aims to further optimize the company’s industrial footprint and reduce reliance on imports.

According to Tamera Fenske, Kimberly-Clark’s Chief Supply Chain Officer, the changes will generate significant gains in productivity and resilience. “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”, she stated.

The plan is part of the company’s global Powering Care strategy, launched in 2024, which is considered the most comprehensive in Kimberly-Clark’s 150-year history. With this new investment cycle, the company reinforces its position as a global leader in disposable personal care products and prepares to further enhance its competitiveness in the coming years.