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Kimberly-Clark plans to build its first plant in Russia

Dallas-based Kimberly-Clark Corp., a leading global health and hygiene company, the maker of Kleenex tissues and Cottenelle toilet paper, plans to start manufacturing in Russia.

Accelerating growth in Developing and Emerging markets is one of Kimberly-Clark’s targeted growth initiatives. The company has placed particular emphasis on Russia and five other key countries that it refers to as BRICIT – Brazil, Russia, Indonesia, China, India and Turkey. The factory will make personal-care goods and tissues sold under the Huggies and Kleenex brands, the company said yesterday.

Construction at the site will begin this month with start-up of the facility scheduled for early 2009. The first phase of development will provide for site preparation, construction of manufacturing buildings, offices, warehousing and roads. The facility will be located in Stupino, approximately 60 miles (100 km) southeast from Moscow, and will occupy an area of about 100 acres (40 hectares). The project will create approximately 150 new jobs in Stupino by the middle of 2009, with additional jobs being added as increased manufacturing capacity comes on line over the next few years. “This facility will allow us to increase speed of delivery and service to our rapidly-growing consumer base and maintain a leadership position in this market. We chose Stupino for its developed infrastructure, highly qualified work force and excellent location for accessing the major cities of Russia and Eastern Europe.”

Kimberly-Clark, which gets more than half its sales in the United States, is hoping to get more revenue from faster-growing economies close to Russia. Kimberly-Clark, described the plant as a multi-million dollar project, without being more specific. Huggies diapers have been sold in the region since 1996, and Kleenex sales began in 2005. The company already has factories in Germany, Italy, Poland and the UK to help serve Europe, spokesperson Dave Dickson said. (