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Kimberly-Clark (K-C) Brasil has closed its 36,000 tpy Cruzeiro tissue mill, in Sao Paulo state, southern Brazil.
The company will transfer some of the Cruzeiro plant’s equipment to its Mogi das Cruzes mill, also in Sao Paulo state, and will deactivate the rest of the machinery.
“We expect to transfer all equipment related to the production of Scott toilet paper, Kleenex facial tissue, Grand Hotel napkins and the K-C Professional line by the end of May and then start up production in June,” Marco Antonio Iszlaji, K-C Brasil's legal and corporate issue director, said.
The decision is part of a restructuring plan to optimize K-C Brasil's operations by concentrating production in Sao Paulo state. “The Cruzeiro plant has operated with losses in recent years, and the Mogi das Cruzes mill needed to be expanded and modernized,” Mr Iszlaji commented.
Currently, the Mogi das Cruzes mill can produce 46,000 tpy of tissue paper, including Neve and Scott toilet paper and Scott kitchen towel paper. With the equipment from the Cruzeiro mill, its capacity will increase to 70,000 tpy. K-C Brasil is to re-employ 60 percent of the Cruzeiro plant's employees at the Mogi das Cruzes mill and offer severance benefits to the remaining staff.
K-C Brasil is also building a distribution center in Mogi das Cruzes, which will be operating by the end of July. “This project aims to reduce costs and improve technology of distribution systems,” Mr Iszlaji said. The 60,000 m_ distribution center will centralize all of K-C’s logistics operations in Brazil.
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