Kimberly-Clark profiting from the occupation

1 July 2010

Kimberly-Clark is one of the largest consumer companies in the world with nearly 56,000 employees in 35 countries, and a sales turnover of over $19 billion in 2009. Its family care brands include Kleenex, Scott, Andrex, Huggies, Pull-Ups, Kotex, Poise and Depend.[8]

Kimberly-Clark’s support for Israel is no secret. In 1998 Israel bestowed its Jubilee Award[1] on Kimberly-Clark. Awarded personally by Israeli Prime Minister Netanyahu on Israel’s 50th anniversary, the Jubilee Awards were given to those select companies in recognition of their investments and trade relationships which have done the most to strengthen the Israeli economy.

Hogla-Kimberly

In 1996, Kimberly Clark invested $49.9 million to buy a 49.9% stake in Israeli sanitary paper products manufacturer Hogla to form Holga-Kimberly Ltd. In 2000, in return for an additional $5 million, it increased it share to a controlling 50.1%. Kimberly Clark employs around 1400 people in Israel in its manufacturing plants in Nahariya, Afula and Hadera and offices in Tzrifin[7][2][9][11][14].

But perhaps what is not so well known is Kimberly Clark’s connection to the illegal Israeli settlements on the West Bank. Kimberly Clark has products manufactured in two factories located in the Barkan Industrial Zone (Barkan settlement) on the West Bank.

Plasto Polish Ltd

Plasto Polish Ltd[3] manufactures household cleaning products like scouring sponges and pads for Kimberly Clark. Interestingly, as with many companies located on the settlements, out of fear of boycott, its website lists a PO BOX in Petach Tikva (in Israel) as its address[4]. A quick look at the Israeli government exporters catalog reveals its true settlement location in Barkan[5]. Its website confirms that its products are sold worldwide under the Kimberly Clark label amongst others: “Plasto-Polish’s products are sold worldwide under its own Bianco label as well as private label for leading companies such as 3M, Kimberly Clark.”[6]

Ofertex Industries Ltd

Ofertex Industries Ltd, again located on the same industrial park in the Barkan settlement[3], manufactures cleaning cloths for Kimberly-Clark. Apart from Kiberly-Clark, Ofertex products are also sold under the following labels: Ilko(Latin America), Mr. Propre, Scotch-Brite 3M, Dollar general and Dollar tree[6][12].

Kimberly Clark Turkey is a wholly owned subsidiary of Israeli company Hogla Kimberly.

Turkish Connection

In 1999 Hogla acquired the Turkish diaper company Ovisan, today Kimberly Clark Turkey is a wholly owned subsidiary of the Israeli company Hogla Kimberly (49.9% owned by Israel’s Hadera Paper Group and 51% owned by Kimberly-Clark group). The company manufactures and markets Kimberly Clark’s brands in Turkey and serves as a regional manufacturing centre for Kimberly Clark diapers, and its products are exported to 22 countries throughout Europe and the Middle East.[10]

Related Items

* Boycott Kimberly-Clark original page on campaign to boycott Kimberly-Clark

Additional Information & References:

[1] JUBILEE AWARDS :
According to the Virtual Israel website on October 14, 1998, Israeli Prime Minister Netanyahu presented a select group of international business people with the highest tribute ever awarded by the “State of Israel”. The Jubilee Award, marking Israel’s fiftieth year of independence, recognizes those individuals and organizations, that through their investments and trade relationships, have done the most to strengthen the Israeli economy.
..
Mr. Robert P. Van der Merwe Kimberley-Clarke Europe
..
Source: http://www.inminds.co.uk/boycott-jubilee-awards.html

[2] UNITED STATES COMPANIES WITH INVESTMENTS IN ISRAEL :
src: Embassy of Israel website: http://www.israelemb.org/economic/uscompanies.htm
..
Kimberly Clark Corp – 49.9% interest in Hogla (6/96) through America-Israel PaperMills $49.9m
..
Source: http://www.inminds.co.uk/boycott-us-companies.html

[3] Ofertex Industries – Contact Information

Ofertex Industries (1997) Ltd.
P.O.B 30, Ind. Zone
Barkan 44820
Israel
Tel. 972-3-9366567
Fax. 972-3-9068296
info[at]ofertex.com
www.ofertex.com

Source: http://www.ofertex.com/SiteFiles/1/14/358.asp Source Snapshot

[4] Plasto-Polish Ltd. hiding settlements location

Contact details given on website:

Plasto-Polish Ltd.
P.O.Box 10383, Petach-Tikva, 49003, Israel
Tel: +972-3-9368830 Fax: +972-3-9368333
sales[at]plasto-polish.co.il

Source: http://www.plasto-polish.co.il/contact.asp Source Snapshot

Contact details given by Israeli Government Exporters Catalog

Plasto-Polish Ltd.
4 Inbar Street
Barkan, 44820
Telephone: 972-3-9368830 972-3-9312053
Fax: 972-3-9368333
Website: www.plasto-polish.co.il
Email: nir[at]plasto-polish.co.il

Source: http://www.export.gov.il/Eng/_Articles/Article.asp?ArticleID=4920&CategoryID=841&Page=1 Source Snapshot

[5] Also see ‘Who Profit from the Occupation’ page on Plasto Polish
Source: http://www.whoprofits.org/Company%20Info.php?id=572 Source Snapshot

[6] Ofertex Industries – Customers

Our products are packaged and marketed to distributors and large marketing chains locally and all around the world, including the leading companies: Dollar general, 3M, Kimberly and etc.

Source: http://www.ofertex.com/SiteFiles/1/4/4.asp Source Snapshot

[7] SECURITIES AND EXCHANGE COMMISSION report on AMERICAN ISRAELI PAPER MILLS LTD

Includes details on Kimberly Clark’s 50.1% acquisition of Hogla:
In 1996, KC acquired 49.9% of the shares of Hogla, a wholly-owned subsidiary of the Company and a leading Israeli consumer products company, which was then renamed Hogla-Kimberly Ltd. The partnership was intended to expand the local production base in Israel, in order to serve both local and regional demand, and to offer Hogla-Kimberly access to international markets. In March 1999, Hogla-Kimberly entered into an agreement to purchase Ovisan, a Turkish manufacturer and marketer of diapers and paper products.

In January 2000, AIPM and KC entered into an agreement pursuant to which AIPM granted KC an option to acquire from AIPM an additional 0.2% of the Hogla-Kimberly equity. On March 31, 2000, KC exercised the option thereby increasing its holdings in Hogla-Kimberly to 50.1%.

Also as a side note the report blames the intifada (‘security events’) for its bad performance: ‘the considerable reduction in incoming tourism, leading to lower demand in the hotel and restaurant sector.. this effected all the Group’s products”. It also blames ‘the decrease in demand from the Palestinian market’, showing the dependence of Israeli companies of Palestinian consumers.

Source: http://freerealtime.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=2356059&SessionID=lwR1HFAQq_SGeR7 Source Snapshot

[8] About Kimberly-Clark

Kimberly-Clark is leading the world in essentials for a better life. Headquartered in Dallas, Texas, with nearly 56,000 employees worldwide and operations in 35 countries, Kimberly-Clark posted sales of $19.1 billion in 2009. Kimberly-Clark’s global brands are sold in more than 150 countries. Every day, 1.3 billion people trust Kimberly-Clark products and the solutions they provide to make their lives better. With well-known family care and personal care brands such as Kleenex, Scott, Andrex, Huggies, Pull-Ups, Kotex, Poise and Depend, we hold the No. 1 or No. 2 share position globally in more than 80 countries.

Source: http://www.kimberly-clark.com/aboutus/company_profile.aspx Source Snapshot

[9] Dun’s 100 Israel’s Largest Enterprises 2009

Hogla Kimberly is ranked #39 over all, #1 in Wood & Paper Products Ranking

Source: http://duns100.dundb.co.il/ts.cgi?tsscript=2009e/e59a1_sector&sec_name=Wood%20%26%20Paper%20Products&order=sales%20desc&duns=600013478 Source Snapshot

[10] Kimberly-Clark Turkey
Wholly owned by Hogla Kimberly, Kimberly Clark Turkey (KCTR) was established in 2005 based on the Turkish diaper company of Ovisan, which was acquired in 1999 by Hogla.

The company manufactures and markets Kimberly Clark’s brands in Turkey: Huggies in the baby diapers market; Kotex in the feminine hygiene market; and the local brand of PEDO in the disposable diapers market.

Located in Istanbul, the company’s advanced manufacturing facility currently serves as a regional manufacturing center for Kimberly Clark diapers, and its products are exported to 22 countries throughout Europe and the Middle East. In 2009, the plant is expected to reach a manufacturing output of over 10 billion diaper units.

In tandem with the significant expansion of its export activities, the company is strengthening its competitive position in Turkey while increasing the market shares of the international brands in their respective categories.

KCTR has a strategic cooperation agreement with Uniliver for the distribution and sale of products to Turkey’s private sector.

Source: http://www.hadera-paper.co.il/en/companies/kctr-0 Source Snapshot

[11] Hogla-Kimberly invests NIS 80m in new logistics center
September 22, 2002

Hogla-Kimberly has invested NIS 80 million to establish a new logistics center in Tzrifin. Paper manufacturer Kimberly-Clark (NYSE:KMB) owns half of Hogla-Kimberly. The center will also be a regional base for Kimberly-Clark, through Hogla-Kimberly.

Source: http://www.accessmylibrary.com/coms2/summary_0286-26066943_ITM Source Snapshot

[12] Company Profile: Ofertex Industries (1997) Ltd

We are manufacturers of floor cloths, hand cloths, bath/kitchen mats, emergency blankets, geothecnic fabrics and more.
BRANDS: Kimberly Clarck, Ilko(Latin America) Mr. Propre, 3M, Dollar general, Dollar tree

Source: http://www.brushexpert.com/directory/company.asp?AccountID=2753 Source Snapshot

[13] Also see ‘Who Profit from the Occupation’ page on Ofertex Industries
Source: http://www.whoprofits.org/Company%20Info.php?id=813 Source Snapshot

[14] Kimberly-Clark Forms Joint Venture in Israel

June 10, 1996
Kimberly-Clark Corporation today announced that it has signed a joint venture agreement with American Israeli Paper Mills (AIPM) to manufacture and market consumer products in Israel. Under the terms of the agreement, Kimberly-Clark will invest approximately $50 million to purchase 49.9 percent of Hogla Ltd., a wholly owned subsidiary of AIPM.

The new venture will be called Hogla-Kimberly Limited and will be managed jointly by Kimberly-Clark and AIPM. A leading Israeli consumer products manufacturer, Hogla will bring its established sales and distribution network and market leadership position to the joint venture. Kimberly-Clark will provide global brand names, premium products and technological expertise in fibers, nonwovens and absorbency.

“This joint venture will give us a base for further expansion of our consumer products businesses in the Middle East,” said John A. Van Steenberg, President of Kimberly-Clark Europe. “Through Hogla-Kimberly Limited, we can strengthen existing Hogla brands based on Kimberly-Clark’s technologies and phase in Kimberly- Clark’s well-known trademarks.”

Founded in 1963, Hogla manufactures and markets a full line of tissue products, as well as disposable diapers and feminine and incontinence care products. The company has manufacturing operations in Hadera, Afula and Nahariya. In 1995, the Hogla business had net sales of $127 million. Hogla-Kimberly Limited will have about 650 employees.

Source: http://findarticles.com/p/articles/mi_m0EIN/is_1996_June_10/ai_18371333/ Source Snapshot

[15] Plasto Polish products for Kimberly Clark (Hogla-Kimberly) – photos
Source: http://www.plasto-polish.co.il/private.asp Source Snapshot

[16] Ofertex Industries products for Kimberly Clark (Hogla-Kimberly) – photos
Source: http://www.ofertex.com/SiteFiles/1/52/195.asp Source Snapshot
Source: http://www.ofertex.com/zoomer.asp?i=01042004190438@test1.jpg Source Snapshot

Source: http://www.ofertex.com/zoomer.asp?i=01042004191251@vel_B.jpg Source Snapshot

I'm a teacher, writer, and activist based in Bangalore. I am dedicated to various issues including #BDS and Palestine, living Zero Waste, and reversing the effects of climate change.

Posted in Boycott, Economic Boycott
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