The world's leading tissue manufacturer
) inked a deal with the biotechnology company Booshoot, by virtue
of which the former will get access to the high-yield fiber
alternatives from Booshoot's proprietary bamboo propagation
technology for manufacturing tissue products.
Booshoot has promised to deliver huge quantity of bamboo starts
to Kimberly-Clark for testing. Initially, several species of giant
bamboos will be tested if they are scalable and sustainable tree
If the bamboo's are proved viable then Kimberly-Clark can save
several years that goes into growing trees before they become ready
for the manufacturing of tissue products.
Booshoot scientists claim that while the Northern Softwood trees
take more than 60 years to reach harvestable maturity, the new
breeds of bamboo starts become harvestable in less than a decade.
It is also capable of producing several times the fiber of
traditional timber. These bamboos consume more carbon dioxide than
normal trees, making them more eco-friendly
This technology will help Kimberly-Clark increase its
productivity as well as boost sales in the near future. It will
also shield the company from volatile price fluctuations in the
world fiber market.
With this initiative, Kimberly-Clark will be able to save huge
amount of primary wood fiber, which it sources from natural
forests. This agreement will also help Kimberly-Clark to cut down
usage of natural forest wood and will help it to go forward with
its commitment of substituting about 50% of wood fiber taken from
natural forests to alternate fiber sources by 2025.
Kimberly-Clark competes with
Procter & Gamble Co.
) and currently holds a Zacks #2 Rank (a short-term Buy rating).
Over the long term, we provide a Neutral recommendation on the
We are encouraged by the company's leadership in several
consumer products categories including diapers, paper goods, health
care products and female personal care. Moreover, Kimberly-Clark
focuses on improving its products through innovation in order to
remain competitive and drive growth. These innovations are expected
to help in improving brand position and market share in the
consumer categories, going forward.
KIMBERLY CLARK (KMB): Free Stock Analysis
PROCTER & GAMBL (PG): Free Stock Analysis
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