Kimberly-Clark pumps in additional S$25m to double Tuas factory exports

KIMBERLY-CLARK is injecting fresh investments of over S$25 million in its Tuas manufacturing facility, with plans to double export volume and value by end 2022, the consumer giant told The Business Times on Monday.

The funds will be used to expand the production capacity for its premium Huggies brand diapers and pull-up pants, and improve value addition to 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 mill exports what it manufactures to markets across the Asia-Pacific, including Australia, New Zealand, Taiwan, China, and multiple Asean countries.

Achal Agarwal, president of Kimberly-Clark Asia Pacific, said this is the third investment the company 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. Thanks to Singapore's strategic location, excellent logistics capability, and support from the government, the Tuas Mill continues to expand its footprint and portfolio," Mr Agarwal added.

This is not the first time the baby products maker invested in its Singapore factory. Last year, it pumped S$18 million into the Tuas factory to double its output capacity for baby wipes, and also to set up a dedicated "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 2019.

Kimberly-Clark had previously invested some S$400 million into Singapore, which also houses its Asia-Pacific headquarters. The investment covered the expansion of its Tuas premises in 2016, introducing two advanced production lines.