Arbex has officially launched operations in Peru after taking over the tissue paper and personal care business of multinational Kimberly-Clark on July 1. The new company was created through a joint venture between Brazilian producer Suzano and American firm Kimberly-Clark, valued at nearly US$ 3.4 billion.
The transaction was originally announced in June 2025 and finalized after securing antitrust approvals in Europe and other markets. Suzano paid US$ 1.7 billion to acquire a 51 percent controlling stake in the business, according to Marina Negrisoli, Latin America president for Arbex, in an interview with Gestión.
Arbex starts operations with a presence in 70 countries, 22 manufacturing plants, and approximately 9,000 employees worldwide. Negrisoli said the corporate separation process required nearly a year of complex planning before the launch.
Corporate origin and brand strategy
The deal builds on a long commercial partnership in Brazil, where Suzano served for decades as the primary pulp supplier for Kimberly-Clark tissue production. Suzano previously purchased Kimberly-Clark operations in Brazil in 2023.
Negrisoli explained that the global hygiene industry is undergoing deep structural changes, prompting the companies to expand their joint model worldwide. The agreement combines Suzano manufacturing capacity with Kimberly-Clark consumer insights, innovation pipeline, and established brand portfolio, targeting high-growth markets across Latin America and Asia. She added that Arbex aims to build new market opportunities and consumer experiences.
The company created the Arbex name this year and revealed it on July 1. Negrisoli said the name blends the Latin root for tree with the letter X found in portfolio brands such as Scott, Kleenex, and Suave.
Consumers in Peru will not see visible changes on store shelves because Arbex serves purely as a corporate parent brand. Negrisoli confirmed that products, packaging design, manufacturing facilities, and workforce remain identical, with the strategy focused entirely on operational continuity.
Packaging updates and market segments
The only planned packaging modification will appear on the back of product wrappers, where the manufacturer name will change to Arbex. Timelines for updating packaging vary between three, six, and nine months across different countries based on local regulations, with the specific schedule for Peru to be announced later.
Arbex plans to invest heavily in its existing consumer brands rather than bringing international brands into the Peruvian market. Negrisoli noted that regional brands like Andrex, Hakle, and Scottex are not in short-term plans for Peru because building consumer familiarity with new names would require excessive investment.
Arbex categorizes the tissue market into best, better, and good tiers based on price, innovation, and packaging. Negrisoli highlighted Peru as a priority Latin American market with high growth potential and openness to product innovation.
The company seeks to expand its presence in the mid-tier better segment, where its current product line remains incomplete. Arbex is also developing product launches and innovation projects to increase market share in the premium best segment, particularly for toilet paper and paper towels.
Competition and local plant operations
Product changes will feature smaller package sizes and reduced item counts to lower out-of-pocket costs for buyers. Negrisoli stated that consumer choices depend on pricing options, noting that some shoppers prefer four-ply rolls and pay more, while others choose two-ply rolls for lower costs. For entry-level buyers, Arbex offers products such as Scott Basic.
The company faces rising competition from supermarket private labels across the consumer goods sector. Negrisoli said many consumer goods companies failed to invest adequately in the entry-level good category, allowing store brands to gain ground in emerging markets.
In professional and institutional sales channels, cheap imported products create price pressure against local manufacturing. Arbex plans to revise its regional distribution networks and design targeted programs for major retail chains. Negrisoli added that Peru presents a unique market split between large supermarket chains and small neighborhood corner stores, requiring customized sales strategies.
At its manufacturing facility in Puente Piedra, Lima, Arbex is prioritizing maintenance over capacity expansion. Negrisoli stated that operational efficiency and factory automation remain key priorities to eliminate product defects and maintain market competitiveness.
Investment criteria and economic outlook
Global resource allocation across Arbex facilities depends strictly on regional competitiveness. Negrisoli warned that if Latin America maintains strong competitiveness, global investment capital will flow into the region, including Peru, whereas lower performance would redirect funds elsewhere. She described Latin America as having medium competitiveness compared to European markets with higher retail prices.
Asian imports along South America's Pacific coast represent another competitive pressure across multiple consumer industries. Negrisoli stated that defending market position requires simultaneous efforts in operational efficiency and continuous product innovation.
Arbex holds a positive outlook for Peru through the end of the year, supported by favorable economic conditions, local plant improvements, and new product rollouts. Negrisoli noted that household tissue consumption aligns closely with disposable income, making sales sensitive to inflation, currency exchange rates, and political conditions.
Commenting on the political landscape, Negrisoli remarked that proposals from the incoming government appear attractive to businesses due to emphasis on reducing bureaucracy. She added that Peru has strong potential to regain momentum in attracting foreign investment and expanding exports.
Looking toward year-end and 2027, regional priorities focus on maintaining strong consumer relationships, brand equity, operational reviews, and talent development. Negrisoli concluded that the region serves as a talent exporter to support global operations across the company.
