**United States:** Kimberly-Clark is committing $2 billion over five years to create a high-tech plant in Ohio and an automated distribution centre in South Carolina, aiming to generate 900 jobs and streamline supply chains across the Midwest and Northeast through regionalisation and AI-driven logistics.
Kimberly-Clark has announced a significant investment plan totalling $2 billion over the next five years to enhance its operations within the United States, marking the company’s largest domestic investment in over thirty years. This strategic move encompasses the establishment of a high-tech manufacturing facility in Warren, Ohio, and an automated distribution hub in Beech Island, South Carolina, in addition to wide-ranging automation upgrades throughout its North American network. The initiative is projected to generate over 900 new jobs and streamline operations designed to better cater to approximately 117 million consumers across the Midwest and Northeast regions.
At the core of this expansion is Kimberly-Clark’s goal to regionalise its production and integrate logistics operations. This approach aims to reduce operational complexity, enhance service levels, and increase the resilience of the supply chain. The new facility in Warren, Ohio, represents a key component of this strategy, with an investment of $800 million earmarked for a manufacturing hub covering 1.2 million square feet. This site will produce crucial items from the company’s personal care portfolio, such as Huggies and Depend, and its advantageous location—near major transportation links—provides Kimberly-Clark with increased access to the densely populated Northeast and Midwest markets.
In South Carolina, the company is allocating $200 million to develop a 1.1 million-square-foot automated distribution centre adjacent to its existing manufacturing plant in Beech Island. This facility will feature capabilities for direct shipping, artificial intelligence-driven logistics, and advanced automated storage systems. These innovations are aimed at reducing lead times and manual handling while improving inventory flexibility. Tamera Fenske, Chief Supply Chain Officer at Kimberly-Clark, noted in a 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.”
The broader modernization initiative reflects Kimberly-Clark’s commitment to evolving its operations beyond traditional manufacturing systems, focusing on creating a digitally-enabled supply chain infrastructure that can withstand future challenges. This strategy highlights a shift from reliance on established legacies towards a focus on innovation and responsiveness within the supply chain.
However, while this investment underscores Kimberly-Clark’s dedication to its U.S. operations, it has raised concerns in Wisconsin, where the company originated over 150 years ago. The state has experienced a consistent trend of divestment from Kimberly-Clark in recent years, prompting questions about the company’s long-term commitment to its birthplace. Despite these concerns, Kimberly-Clark maintains a robust workforce of over 2,500 employees in Wisconsin and continues to promote a U.S.-first manufacturing ethos.
For business leaders and industry observers, the implications of Kimberly-Clark’s strategy are clear: traditional competitive advantages based on scale and history are rapidly evolving. The ability to remain close to consumers, embrace automation, and adapt physical networks will increasingly define leadership in supply chain management. Kimberly-Clark’s integration of high-tech manufacturing with regional responsiveness may serve as a model for companies facing similar challenges. As advancements in artificial intelligence, robotics, and real-time logistics progress, the key question for global manufacturers may soon shift from where to locate facilities to how effectively those locations can adapt to disruptions.
Source: Noah Wire Services
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