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K-C To Make Debut In Russia

September 13, 2007

K-C to construct its first manufacturing facility in Russia.

Yesterday Kimberly-Clark Corporation, Dallas, TX, announced plans to construct its first manufacturing facility in Russia to support its growing consumer business there and in Eastern Europe. The multi-million dollar facility will be built in phases and will produce personal care and tissue products under the well-known Huggies and Kleenex brands.

Accelerating growth in Developing and Emerging markets is one of Kimberly-Clark's targeted growth initiatives. The company has placed particular emphasis on Russia and five other key countries that it refers to as BRICIT—Brazil, Russia, Indonesia, China, India and Turkey.

"Russia is a strategically important market for K-C due to its rapid economic growth and the long-term potential of its health and hygiene categories," said Tom Davis, president of K-C’s Middle East, Eastern Europe and Africa group. "Local manufacturing is a key element of our strategy."

Construction at the site will begin this month with start-up of the facility scheduled for early 2009. The first phase of development will provide for site preparation, construction of manufacturing buildings, offices, warehousing and roads. The facility will be located in Stupino, approximately 60 miles (100 km) southeast from Moscow, and will occupy an area of about 100 acres (40 hectares).

The project will create approximately 150 new jobs in Stupino by the middle of 2009, with additional jobs being added as increased manufacturing capacity comes on line over the next few years. Construction on the site and the need for local support services are also expected to boost employment in the Stupino area.

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