Kimberly-Clark invests another $25m to double Tuas exports

An employee carrying out quality inspection at Kimberly-Clark's Tuas plant. Last year, the baby products maker pumped $18 million into the factory to double its output capacity and set up a lab to boost product innovation.
An employee carrying out quality inspection at Kimberly-Clark's Tuas plant. Last year, the baby products maker pumped $18 million into the factory to double its output capacity and set up a lab to boost product innovation.PHOTO: KIMBERLY-CLARK

Third investment in four years in bid to boost output, innovation

Consumer goods giant Kimberly-Clark is investing a further $25 million at its Tuas manufacturing facility to double export volume and value by the end of 2022.

The funds will be used to expand the production capacity for its premium Huggies diapers and pull-up pants and improve its Huggies baby wipes product.

The investment will also incorporate a number of Industry 4.0-related productivity enhancements, such as deploying automatic-guided vehicles and advanced warehouse management systems.

Kimberly-Clark's Tuas facility exports to markets across the Asia-Pacific, including Australia, New Zealand, Taiwan, China and multiple Asean countries.

Mr Achal Agarwal, president of Kimberly-Clark Asia-Pacific, said this is the third investment the firm has made in the past four years, which is "a testament to the excellence and success of the operation".

"Since 1981, Kimberly-Clark's manufacturing facility in Tuas has been a globally-leading, state-of-the-art export facility," he added.

"Thanks to Singapore's strategic location, excellent logistics capability and support from the Government, the Tuas Mill continues to expand its footprint and portfolio."

Last year, Kimberly-Clark pumped $18 million into the Tuas factory to double its output capacity for baby wipes and to set up a "formulation lab" to boost product innovation.

At the time, the three product types made in Tuas - Huggies diapers, pull-up pants and baby wipes - were evenly split across the factory's output.

The company said the plant makes about 2.4 million baby wipes a year - a capacity set to be raised to five million by the second quarter of this year.

Kimberly-Clark had previously invested about $400 million in Singapore, which also houses its Asia-Pacific headquarters. The investment covered the addition of two advanced production lines at the Tuas plant.

A version of this article appeared in the print edition of The Straits Times on May 28, 2019, with the headline 'Kimberly-Clark invests another $25m to double Tuas exports'. Print Edition | Subscribe