Reports are surfacing that Kimberly-Clark Corp is planning to sell its tissue paper assets in Brazil and Latin America. Local newspaper Valor Economico reported last week that the company is in talks with JPMorgan  to reassess its business in the region.

Though a price tag has yet to be decided, market estimates suggest Kimberly-Clark’s assets are valued at between $800 million and $1 billion as a whole, with Brazil accounting for about $200 million, Valor said.

Brazilian pulpmaker Suzano SA, Chile’s CMPC-owned  Softys, Nine Dragons Paper, Oji Holdings Corp,, RGE and J&F Investimentos are reportedly among those interested in Kimberly-Clark’s Brazilian assets. The deal would not include the company’s Mexican operation.

Last week, Brazilian news sources reported that K-C continues to invest heavilty in its Brazilian hygiene assets in an effort to create an innovation hub and export center for the Latin American region. The company has been investing in capacity expansion equipment in Brazil since 2020. Efforts have included the installation of new technologies to increase diaper and wipe production as well as the construction of an increasingly local raw material supply network.

“Brazil is our most important market in Latin America. It is one pillar of the company’s organic growth,” says Gonzalo Uribe, chief executive for Latin America.

Brazil is one of Kimberly-Clark’s 10 largest operations worldwide, with 4000 employees. In the first quarter, sales of the Brazilian operation grew by double digits. Globally, the sales of the U.S-based multinational grew 7% year over year, to $5.09 billion, but operating income fell 10%, the same contraction as net income, which stood at $535 million.