Arbex Targets Global Tissue Market Share Growth Backed by Suzano and Kimberly-Clark
Arbex’s Strategy for Expanding Market Leadership in the Tissue Sector
By Alexander Marrow
LONDON, July 9 (Reuters) - Kleenex owner Arbex is counting on Brazilian pulp giant Suzano's 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 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 and Essity.
Leadership and Independence
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.
Parent Companies’ Perspectives
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".
Market Share Ambitions and Growth Plans
Ambition to Exceed a Third of Global 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.
CEO’s Vision for Market Leadership
"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.
Investment and Innovation
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."
Cost Management and Consumer Impact
Efficiency Over Price Increases
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)
