Suzano and Kimberly-Clark Announce $3.4 Billion Joint Venture Partnership

June 5, 2025 - Suzano, the world's largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, today announced the creation of a US$3.4 billion joint venture focused on the manufacture, marketing and distribution of consumer and professional tissue products, such as toilet paper, napkins, paper towels and facial tissues in over 70 countries. Suzano will acquire a 51 percent interest in the new entity, with Kimberly-Clark holding a 49 percent interest.

Suzano will pay Kimberly-Clark US$1.734 billion in cash for its 51 percent stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments.

Closing of the transaction is contingent on, among other things, approval by regulatory and other governmental authorities, fulfillment of customary conditions precedent for transactions of this nature, and completion by Kimberly-Clark of a corporate reorganization of its Consumer Tissue and Professional business unit.

The transaction is expected to close in mid-2026 and involves approximately 9,000 employees.

The new business will be a company incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue a year. The assets to be included in the new joint venture generated net sales in 2024 of approximately US$3.3 billion.

Kimberly-Clark will retain its consumer tissue and professional businesses in the United States and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.

Beto Abreu, CEO of Suzano, said, "This new company brings together two global players that are leaders in their respective markets, with complementary capabilities that combine Suzano's industrial expertise and operational management efficiency with Kimberly-Clark's know-how in brand management, marketing and commercialization of both regional and global brands, as well as its extensive experience in managing operations across multiple regions worldwide.

"Both companies share strong organizational cultures rooted in innovation and sustainability. We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers."

Marcos Assumpção, CFO of Suzano, said, "This transaction reflects Suzano's disciplined approach to capital allocation with value creation and fully in line with our financial policy. Moreover, the partnership with Kimberly-Clark ensures business operational continuity and an alignment towards operational efficiency opportunities, mitigating risks typically encountered during international expansion."

Mike Hsu, Chairman and CEO at Kimberly-Clark, said, "This transaction represents a powerful step forward in Kimberly-Clark's transformation journey. We are pleased to enter into a strategic partnership with Suzano, a leader in its field, and we look forward to working closely together to deliver on the significant opportunities ahead for our International Family Care and Professional Business."

More than 40 regional brands of Kimberly-Clark´s International Family Care and Professional portfolio will be transferred into the joint venture, that will also enter into a long-term license with the new company for use of its global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional.

The transaction is aligned with Suzano's long-term strategy of value-accretive growth with financial discipline, focusing on scalable businesses where the company can leverage its strength in operational efficiency.

Suzano is currently a leading player in toilet paper in Brazil, following the 2023 acquisition of Kimberly-Clark's Brazilian tissue assets and brands.

Suzano is also in the process of building a new R$650 million (approximately US$115 million) tissue paper mill at its site in Aracruz in the state of Espírito Santo, which will add 60,000 tonnes of annual capacity to the company's Consumer Goods Business Unit.

Luis Bueno, Executive Vice President of Consumer Goods and Corporate Affairs at Suzano, said, "We have an excellent understanding of Kimberly-Clark's culture and internal processes, thanks to our 2023 acquisition of the Brazilian tissue business. We have already been able to achieve significant efficiency gains in these operations, which we are confident can be replicated in other regions.

"Our ability to achieve this goal is intrinsically tied to the tremendous quality of the talent within Kimberly-Clark ´s team, who have helped develop and grow iconic, innovative and trusted brands that are a part of the everyday lives of hundreds of millions of people around the world."

At closing of the transaction, Suzano and Kimberly-Clark will enter into a joint venture agreement establishing certain rights and obligations related to the management, control, operation, shareholding, and other matters concerning the joint venture. It will have a Board of Directors with five members, three of whom will be appointed by Suzano and two of whom will be appointed by Kimberly-Clark. The Transaction also includes a call option for Suzano to acquire Kimberly-Clark's 49% interest in the new company.

About Suzano

Suzano is the world's largest pulp supplier, a major paper and packaging producer in the Americas, and one of Brazil's biggest employers. Founded in Brazil over 100 years ago, today Suzano operates across Latin America, North America, Europe and Asia.

About Kimberly-Clark

Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Its portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries.

SOURCE: Hawthorn Advisors (for Suzano)

Metsä Fibre Taking Temporary Downtime at Its Joutseno Pulp Mill in Finland

June 9, 2025 - Metsä Fibre is initiating a temporary production shutdown at its Joutseno pulp mill in Lappeenranta, Finland, starting today, June 9.

The shutdown is the result of low order volumes from Asia.

"Our Joutseno pulp mill will be shut down until further notice," said Ismo Nousiainen, CEO of Metsä Fibre. "This temporary production shutdown enables us to adjust our pulp inventory levels to match the low order volumes from Asia and the uncertain market situation."

The Joutseno pulp mill has the capacity to produce 690,000 tonnes per year of softwood pulp. The mill employs about 190 people.

"We are actively monitoring the development of the market situation, especially in the Asian markets, and will determine the duration of the shutdown and the timing of the mill's restart based on how the situation evolves. Wood supply and other operational conditions are well in place for resuming production." Nousiainen said.

Metsä Fibre, a member of the Metsä Group, is a leading producer of wood-based bioproducts, such as pulp, sawn timber, biochemicals and?bioenergy. The company produces pulp and bioproducts at four mills and sawn timber products at four sawmills in Finland.

SOURCE: Metsä Fibre

UPM Expands Its Baltic Sea Collaboration to Include Forestry Water Protection

June 10, 2025 - UPM is deepening its over 15-year collaboration with the Baltic Sea Action Group (BSAG) by developing forestry water protection. The new commitment focuses on research into sustainable forestry and the development of new practices in peatlands, among other areas.

"As part of our Forest Action forest responsibility program, we want to be at the forefront of promoting sustainable practices in forestry water protection," said Tuomas Kara, Environmental Manager at UPM Forest. "A lack of clear, research-backed information in certain areas is still holding back the development of effective practices. We want to offer research plots that can be used to find concrete ways to reduce environmental impacts on water and climate emissions in forests, for example."

Jussi Heinonsalo, Professor of Forest Sciences at the University of Helsinki, explained, "Research supported by companies can be a significant step forward in finding and mainstreaming more sustainable practices. The plots will be integrated into a wider network of plots coordinated by the University of Helsinki, which is open to all researchers to conduct scientific studies."

Taina Ihaksi, Director of the BSAG Forest Project, added, "According to studies, the impacts of forestry on water quality and carbon balance are significant, which supports the promotion of better practices. We will have the opportunity to explore with researchers, in particular open questions related to the regulation of groundwater level and to the carbon cycle, as well as impacts on water bodies."

New Operating Models for Water Protection in Forest Management

In addition to research, practical forestry measures are also being developed as part of the collaboration. New guidelines are being drawn up for water protection in forestry, both for UPM's own forests and privately owned forests. UPM is also committed to communicating the new operating models and guidelines to its forest owner customers.

"We aim to give greater attention to water bodies affected by forest management and to take into account their special characteristics," Ihaksi noted. "The impacts of forestry on water bodies are addressed through everyday decisions: Which type of regeneration or soil preparation methods are chosen? When to harvest? What kind of machines are used and where? This is already a part of everyday activities in forestry. However, there is still plenty of room for improvement in preventing environmental harm, and for that, we need more science-based information. Small changes in forest management methods can also help restore water conditions in forests towards a more natural state. Implementing research results requires commitment and continuous training of personnel."

Long-term Collaboration for the Protection of the Baltic Sea Continues

Sami Lundgren, Vice President, Responsibility, for UPM, said, "The collaboration between UPM and BSAG is a great example of long-term and multidimensional work that has succeeded in developing operating methods and finding new solutions. The commitments have covered topics that are central to the Baltic Sea, ranging from harmful chemicals to nutrient recycling and maritime emissions. It's only natural that the next theme was found in the forest sector."

Among others, UPM was the first Finnish shipper to commit to BSAG's Ship Waste Action initiative and to discharge its sewage from sea transport to land for recovery from spring 2022.

UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. The company operates globally and employs approximately 15,800 people worldwide, with annual sales of approximately EUR 10.3 billion.

SOURCE: UPM

CMPC Celebrates Official Launch of Forest Products Business Unit in Atlanta

June 10, 2025 - With the presence of key clients, CMPC on May 12 celebrated the official launch of CMPC Forest Products in Atlanta, Georgia (USA).

According to the company, the Atlanta office marks a new step in its internationalization strategy and closer relationship with the North American market.

"This step allows us to be closer to our customers in the United States and respond more quickly to their needs, offering first-class service right down to the last mile," said Francisco Ruiz-Tagle, general manager of CMPC.

The event brought together nearly 20 clients from the pulp, boxboard, sack kraft, and wood businesses, who participated in various meeting opportunities organized by the team. The event also featured an opportunity to unveil the newly remodeled offices.

CMPC Forest Products, operating since January 1, 2024, is the result of a joint venture with International Forest Products (IFP), and has a team of 24 people who manage sales and logistics services for CMPC's businesses.

Dan Kraft, President and CEO of IFP, commented, "We are proud to continue building a strong relationship with CMPC, which will allow us to offer comprehensive solutions to clients in the United States."

CMPC is a global company that produces and commercializes forestry products, cellulose, paper, and tissue products from its responsibly managed, certified plantations.

SOURCE: CMPC