Mexico City, March 16th, 2005
During the meeting held on March 15th, 2005, the Board of Directors
of Kimberly-Clark de México, S.A. de C.V. (KCM) has authorized
management to evaluate alternatives by which the company will divest
the Industrial Products (PRODIN) business. This separation would
include the writing and printing papers, cigarette paper and notebooks
businesses as well as those for the production of wood and bagasse
pulp.
With this decision, the company recognizes that both Consumer Products
(PROCON) and PRODIN have become two different businesses within
the same company, that both have been and are very successful in
accordance with the parameters of their corresponding markets and
industries and that it is convenient for each one to operate separately
with its respective growth and improvement strategies.
KCM is convinced that this separation will reinforce both businesses
as each one will be totally focused on satisfying the particular
needs of their consumers and customers, thus consolidating their
market leadership.
The alternatives that will be evaluated are the spin-off or sale
of the business that constitutes the PRODIN group and is expected
to be completed in the next fifteen months.
The business group that will be divested represented approximately
20 percent of KCM´s sales, 13 percent of its operating profit
and 23 percent of its total assets in 2004.
Kimberly-Clark de Mexico is dedicated to the manufacture, marketing
and sale of personal use consumer and paper products.
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