Kleenex owner Arbex targets global market share gains with Suzano, Kimberly-Clark backing

Suzano SA

09/07/2026 07:00

    * Arbex, a Suzano and Kimberly-Clark JV, launched in July
    * $3.4 billion company competes with P&G, Essity
    * CEO wants tissue and hygiene firm to grow market share to
35%
    * Arbex not planning to pass higher costs on to consumers,
CEO says

    By Alexander Marrow
    LONDON, July 9 (Reuters) - Kleenex owner Arbex is counting
on Brazilian pulp giant Suzano's  SUZB3.SA  industrial expertise
to help it grow its global market share by around 10 percentage
points to consolidate its leading role in the tissue and hygiene
sector, it told Reuters. 
U.S. consumer goods firm Kimberly-Clark  KMB.O  finalised the
sale of a 51% stake in its international tissue business to
Suzano this month, forming a $3.4 billion joint venture, Arbex,
that will compete with rivals like Procter & Gamble  PG.N  and
Essity  ESSITYa.ST . 
    In his first interview as Arbex CEO, Ehab Abou-Oaf told
Reuters the company can run faster independently, through
prioritising resources and investment. 
    Arbex may need that mindset, as both of its parent companies
have suggested the venture is not a priority.
When the deal was announced in June 2025, Suzano said it had to
ensure that the new business would not generate any kind of
distraction to its core operations, while Kimberly-Clark noted
that the deal would "reduce its exposure to more volatile input
costs". 
     
AMBITION IS TO TAKE MORE THAN A THIRD OF MARKET SHARE
    To manage costs, Arbex is focusing on more regional
procurement, lowering its plastic consumption levels and finding
better ways to reduce waste, Abou-Oaf said. 
He plans for Arbex to grow revenues at 1-2% annually, faster
than the market, and sharply increase its global market share
from 24-25% currently. 
"To be the undisputed leader, we're going to need to cross 35%,
and that's our ambition, we think it's doable," Abou-Oaf said.
He did not give a timeframe for the target. 
Arbex will continue investing $100 million to $120 million each
year in production mills, product design and innovation,
Abou-Oaf said, and was bullish on coping with higher energy
prices due to the Iran war. 
    "Short-term crises, whether the increase in oil prices as a
result of what's going on in the Strait of Hormuz, or other
crises that arise, help actually sharpen the thinking in terms
of how to become best in cost."
    Passing costs on to consumers, he said, is not an option. 
    "It's not just simply easy to pass these costs on to
consumers," Abou-Oaf said. "They expect us to actually be more
efficient, even at times of crisis."

 (Reporting by Alexander Marrow; Editing by Jan Harvey)
 ((alexander.marrow@thomsonreuters.com; +447393253522))