Arbex Aims to Expand Global Tissue Market Share Following Suzano and Kimberly-Clark Joint Venture

Arbex, the tissue and hygiene company formed through a joint venture between Brazilian pulp producer Suzano and U.S. consumer goods company Kimberly-Clark, is targeting a significant increase in its global market share as it seeks to strengthen its position in the industry.

The venture was established after Kimberly-Clark completed the sale of a 51% stake in its international tissue business to Suzano in July, creating a business valued at approximately $3.4 billion. Arbex will compete with major global manufacturers including Procter & Gamble and Essity.

In his first interview as Arbex chief executive, Ehab Abou-Oaf told Reuters that operating as an independent company would allow the business to move more quickly by prioritizing resources and investment.

Abou-Oaf said Arbex currently holds an estimated 24% to 25% share of the global tissue market and aims to increase that figure to more than 35%, although he did not specify a timeline for achieving the target.

To improve efficiency and manage costs, the company is focusing on regional procurement, reducing plastic consumption, and minimizing waste across its operations. Arbex also plans to maintain annual investments of between $100 million and $120 million in production mills, product design, and innovation.

The CEO said the company expects to grow annual revenue by 1% to 2%, outpacing overall market growth. He also expressed confidence in the company's ability to manage higher energy costs resulting from geopolitical disruptions, including those affecting the Strait of Hormuz.

According to Abou-Oaf, improving operational efficiency will remain the company's primary response to rising costs rather than increasing prices for consumers.

The formation of Arbex follows statements from both parent companies emphasizing their strategic priorities. When the transaction was announced in June 2025, Suzano said the new business should not distract from its core operations, while Kimberly-Clark said the deal would reduce its exposure to more volatile input costs.