Kleenex and Lily brands move to Arbex in Israel
Arbex, the new international corporation formed by Kimberly-Clark and Suzano, is launching operations in Israel. The company will now manage the marketing of Kleenex, Lily, Molt, Nicol, and Shmurat Teva, while Huggies, Kotex, and Depend remain under Kimberly-Clark.
Arbex, the new international corporation formed by Kimberly-Clark and Suzano, is launching operations in Israel. The company will now manage the marketing of tissue, hygiene, and toilet paper brands including Kleenex, Lily, Molt, Nicol, and Shmurat Teva. The brands Huggies, Kotex, and Depend will remain under Kimberly-Clark.
Arbex is a new global player in the Israeli market, replacing Kimberly-Clark, which holds a 49% stake in the joint venture. Kimberly-Clark will continue to market Huggies diapers, Kotex feminine hygiene products, and the adult diaper brand Depend in the country. The formation of Arbex was announced in 2025, and it was officially launched globally on July 1, 2026. Following the global launch, Arbex is now beginning its operations in Israel under the leadership of CEO Liat Keidar-Feigin.
The company's scope of activity is estimated at approximately $3.4 billion. The new company's headquarters is in the Netherlands, with operational offices in London. The CEO is Egyptian-Belgian businessman Ehab Abu Ouf, who previously managed the international division at Kimberly-Clark, and the Chairman of the Board is Brazilian businessman Walter Schalka, who served for about a decade as CEO of Suzano. The company has taken over 22 production sites in 14 countries and operates in more than 70 markets.
Arbex holds long-term licenses to produce and market Kimberly-Clark's super-brands such as Kleenex, Scott, Cottonelle, and WypAll everywhere except North America, alongside dozens of regional brands such as Lily, Nicol, and Molt in Israel or Andrex in the UK. The company's three production plants in Israel—located in Hadera, Afula, and Nahariya—as well as the logistics center in Tzrifin, will continue to operate under the management of Arbex and Kimberly-Clark.
For Kimberly-Clark, this move represents a strategic restructuring: the company spun off its international paper division (International Family Care & Professional) and sold a 51% stake to the Brazilian company Suzano. This allowed Kimberly-Clark to generate cash, transfer raw material production risks to the world's most efficient pulp producer, and remain a 49% partner in future profits. For Suzano, this move marks an expansion from commodity trading into finished consumer goods, providing greater financial stability and direct consumer contact.
