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Kimberly-Clark cuts forecasts after Huggies claims hit sales. Manufacturer Kimberly-Clark, which has a site in Barrow, has said its second-quarter results for 2026 have been "negatively impacted by false allegations" surrounding its Huggies products in the China market. Chinese media reported in June that Huggies and two other brands - Babycare and Bibabebe - tested positive for formamide, a substance that can irritate the skin and eyes. Kimberly-Clark, which also produces Andrex and Kleenex, has labelled the allegations false - but said that sales have been impacted by the accusations which spread across social media. In its second quarter and first half 2026 results, published in August, the business cut its sales and profit forecasts - saying it now expects annual adjusted earnings per share growth in a high-single-digit rate on a constant-currency basis. This is down from earlier forecast double-digit growth. Kimberly-Clark (Image: Kimberly-Clark) An official statement from Kimberly-Clark reads: "The Company noted that its second-quarter results were negatively impacted by a discrete disruption stemming from false allegations regarding the quality of certain diaper brands in the China market. "Independent testing conducted by a government-certified third party confirmed the quality and safety of the Company's products, refuting the false allegations. "While the Company is effectively navigating the situation, the impact from the spread of false claims across social media significantly impacted the Company's diaper sales in China in the second quarter and is expected to further impact sales and profits in the near term." Despite the challenges, Kimberly-Clark reported a profit of $633 million for the quarter (compared to $592 million in 2025), while adjusted operating profit was $757 million, up 6.2 per cent versus the prior year. The company said results had been driven by one-time tariff refunds, strong productivity savings and favourable currency impacts, partially offset by business exits and social media disruption. One major local investment made by the business has been green energy - with the company proceeding with a £125 million hydrogen project in Barrow. Read More: In May, it was confirmed that the Carlton Power facility will supply the hydrogen to Kimberly-Clark's site - helping to reduce gas usage by 50 per cent. Around 200 workers are set to be employed in the construction phase of the power facility, and 10 to 15 full-time roles could be created once it is operational. The predicted opening date is 2028. More Stories

Kimberly-Clark turns away from 'natural' trees to make toilet paper. The maker of hygiene products under the Scott, Kotex, Kleenex and Huggies brands will source fiber from a low-water, native U.S. plant. Key Takeaways: * Kimberly-Clark has tested more than 70 regenerative natural fibers to replace wood pulp. * The company cut fiber use from "natural forests" by 50 percent from a 2011 baseline year. * Procter & Gamble and Georgia Pacific are also researching non-wood fiber alternatives. Two years after making a "natural forest-free" paper sourcing commitment, Kimberly-Clark is building a manufacturing plant to scale its use of hesperaloe, one of 70 regenerative natural fibers it has tabbed as an alternative to wood pulp. The consumer products company hasn't declared a deadline for its "natural forest-free" pledge - beyond saying it will be after 2030 - but it achieved a 50 percent reduction in fiber use from natural forests in 2025 compared with a 2011 baseline, according to its 2025 sustainability report. Kimberly-Clark's definition of "natural forests" encompasses old-growth trees and those that naturally generate, mostly in boreal or temperate climates. The company used pulp certified under Forest Stewardship Council (FSC) guidelines for 77 percent of its virgin fiber purchases. But, while FSC-certified sources will make up the bulk of the company's purchases for some time, it is also betting on hesperaloe, a low-water succulent that is native to the southwest United States. Kimberley-Clark is building a facility in Yuma, Arizona, to scale the supply of hesperaloe available for its toilet paper, tissues, diapers and feminine hygiene products, which it sells under the Scott, Kleenex, Huggies and Kotex brands. "While testing continues, we are optimistic about early results and believe this material will provide curve-bending performance in our products while strengthening our long-term growth and supply chain resilience and accelerating our journey toward a future less dependent on traditional fiber sources," said Craig Slavtcheff, chief research and development officer at Kimberly-Clark. The company is also developing alternative sources using fiber from wheat straw, sugar cane and sorghum, among other plants. It has spent roughly $250 million over the past decade on research. "This is just the beginning but signals a potentially market-shifting breakthrough," said Shelley Vinyard, director of global nature at the Natural Resources Defense Council, "If Kimberly-Clark can scale up production of this fiber sustainably and without displacing other native ecosystems, this could alleviate significant pressure on the forests currently used to make tissue products." Smaller hygiene product brands are already leaning into alternative fiber sources. One example: Paddy Paper, which launches Aug. 25 and uses leftover straw from rice, the world's third-largest food crop. Presently, an estimated 220 billion pounds of rice straw are burned annually. The big consumer products companies have been slower to embrace new sources. P&G talks up its forest certification initiatives and has tested limited bamboo versions of its products. More recently, it committed another $20 million to finding non-wood fiber alternatives. Georgia Pacific uses bast fibers including hemp and jute, although not for its bathroom tissue lines. Other progress. In addition to its 2025 paper sourcing milestone, Kimberly-Clark said it cut the absolute greenhouse gas emissions from its operations (Scope 1) and purchased electricity (Scope 2) by 46 percent since its 2015 baseline year, well on the way to the 50 percent reduction it has pledged to meet by 2030. These categories account for roughly 30 percent of the company's overall emissions. The footprint of indirect activities (Scope 3) was reduced by 16 percent. Kimberly-Clark's target for 2030 is 20 percent for emissions from two Scope 3 categories: purchased goods and services, and end-of-life treatment of sold products. Get real case studies, expert action steps and the latest sustainability trends in a concise morning email. Heather Clancy's articles have appeared in Entrepreneur, Fortune, The International Herald Tribune and The New York Times.

Vitas resigns as Moline city administrator. By: QCBJ News Staff | August 17, 2026 The City of Moline is looking for a new city administrator with the sudden resignation of Bob Vitas from that position. Mr. Vitas, who was administrator since 2021, resigned as of Friday, Aug. 14. He had been on paid administrative leave since Friday, Aug. 7, according to City of Moline officials. "We thank Bob Vitas for more than five years of consistent leadership and service to Moline, particularly in economic development and in building strong partnerships across the Quad Cities to move Moline forward," said Moline Mayor Sangeetha Rayapati in a news release. "Bob helped stabilize our workforce, negotiate significant development deals and worked closely with the city council to turn a shared vision for Moline into action through our Strategic Plan. We appreciate his contributions to Moline and wish him well in his future endeavors." When he was hired five years ago, City of Moline officials praised Mr. Vitas for his decades of experience in the municipal planning sector, including economic development strengths, business attraction and retention, and urban planning. They pointed out that some of his accomplishments were the restructuring of the tax increment financing (TIF) district in Lake Zurich, Illinois; attraction of Walmart Corporation's New England distribution center to Lewiston, Maine; and attraction of Kimberly Clark Corporation's research and development center and a new manufacturing facility in Menasha, Wisconsin. In the recent news release, the City of Moline had this statement regarding the resignation: "The City consistently conducts an annual evaluation process for administrative leadership. As with any employment relationship, that process can lead to a range of outcomes, including a change in leadership. The City followed its established process in this case. We won't be discussing additional details related to personnel matters." Assistant City Administrator Barry Dykhuizen will serve as interim city administrator. He has 19 years of local government leadership experience, including the past four years as Moline's assistant city administrator. He previously served as city manager of Guttenberg, Iowa, and city administrator of Morrison, Illinois. Mr. Dykhuizen holds a master's degree in public service management from DePaul University, is an ICMA Credentialed Manager and holds an executive certificate in public leadership from Harvard Kennedy School of Government. "City operations and services will continue without interruption under (Mr.) Dykhuizen's leadership," according to a news release. The Moline City Council is responsible for appointing Moline's next city administrator and will begin that process immediately. In fact, the council is expected to approve a resolution to accept Mr. Vitas' resignation. That resolution is on the council's agenda for its meeting at 6 p.m. Tuesday, Aug. 18.