The spin-off involves the fine paper business of Neenah Paper, Technical Paper, its speciality paper business, and pulp and timber operations spread across Canada.
The group will now focus its development on its health and hygiene businesses.
As a result of the spin-off, a new publicly traded company called Neenah Paper Inc will be created. It produces a range of fine and technical paper grades and approximately 700,000 tons of pulp per year.
The combined businesses of Neenah Paper, Technical Paper and the pulp and timber operations had net sales of approximately 359m ($665m) in 2003. Kimberly-Clark will become one of the new company's largest customers through a long-term pulp supply agreement.
Kimberly-Clark to offload pulp and paper ops
Kimberly-Clark is to spin off its fine paper and speciality paper arms, along with its pulp and timber operations.
