KIMBERLY-CLARK ANNOUNCES OUTSOURCING OF ITS TRUCKING OPERATIONS.
Under the agreement, Schneider National will sublease tractors and trailers currently used by Kimberly-Clark Integrated Services Corporation (ISC) to ship the company's products. Schneider National will also acquire ISC terminals in Beech Island, S.C., and New Milford, Conn., and will form a dedicated fleet to serve Kimberly-Clark's truck transportation needs.
"The shift to a national trucking firm will result in substantial cost savings for Kimberly-Clark and will allow us to continue to provide our customers with a high-quality delivery service," said Timothy E. Hoeksema, president of Kimberly-Clark's Transportation Sector. "The growth of outside, dedicated carrier operations has changed the economics of transportation, making it more difficult for private fleets such as ISC to remain competitive, while creating greater efficiencies for major fleets such as Schneider National, the largest truckload carrier in North America."
In a related move, Allied Van Lines has agreed to sublease ISC's household moving vans.
"Schneider National and Allied Van Lines have committed to offering jobs to ISC drivers, maintenance personnel and salaried employees who meet their requirements," Mr. Hoeksema said.
ISC, established in 1981 to transport Kimberly-Clark products throughout the country, has 700 employees in 14 cities.
The new operations are expected to begin in July and will have virtually no effect on the more than 40 other carriers that also provide trucking services for Kimberly-Clark.
Kimberly-Clark, a Fortune 100 company, is a manufacturer of household, personal care and health care products, as well as newsprint and premium business, correspondence and specialty papers. Its well-known consumer products include Huggies diapers, Huggies Pull-Ups training pants, Pull-Ups GoodNites underpants, Huggies baby wipes, Kleenex facial tissue, Kleenex premium bathroom tissue, Kotex and New Freedom feminine care products, Hi-Dri household towels and Depend and Poise incontinence care products.
CONTACT: Kimberly-Clark Corp.
Colleen B. Berman, 214/830-1485
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|Date:||Apr 24, 1995|
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