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Dive Brief:
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Kimberly-Clark announced plans on Thursday to invest more than $2 billion over the next five years in its North America segment, expanding its U.S. manufacturing capacity and modernizing its supply chain.
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The investment includes approximately $800 million to establish an advanced manufacturing facility in Warren, Ohio, and $200 million to add an automated distribution center at its factory in Beech Island, South Carolina.
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The remaining funds will be put towards innovation and automation upgrades at Kimberly-Clark’s facilities in North America, according to a news release. The total investment is expected to create more than 900 jobs in industrial automation and advanced manufacturing.
Dive Insight:
The Warren facility will span approximately 1.2 million square feet, according to city trustees documents. The site will also be strategically located on an existing industrial development that’s close to a major airport and highways, serving as a hub for the Northeast and Midwest regions, according to a Jobs Ohio press release.
Kimberly-Clark added that the Warren plant will provide the manufacturing capacity for its personal care products, implementing technologies to develop and improve new processes and consumer products.
The new 1.1 million-square-foot regional distribution center at the Beech Island manufacturing plant will support future growth and refine supply chain network efficiencies, the company said.
The site will also have the increased ability to ship directly from the factory, as well as use robotics, artificial intelligence-powered logistics systems and optimize storage space to boost efficiency, according to South Carolina Gov. Henry McMaster’s press release.
“By bringing together manufacturing and distribution under one automated roof, we are building a more agile, responsive, and resilient manufacturing network that will enhance service levels for our retail partners and contribute to our gross productivity plan,” Tamera Fenske, Kimberly-Clark’s chief supply chain officer, said in a statement.
Construction for the Warren and Beech Island facilities is scheduled to begin this month and will take between two to three years to complete, the company said.
The investment is part of Kimberly-Clark’s strategy introduced last year to save more than $3 billion through improved productivity. The plan involves investing in research and development and technology to address unmet and evolving consumer needs, with a focus on growing 12 of its major brands.