Kimberly-Clark Corporation announced yesterday that, due to increased demand for the company’s Huggies and Pull-Ups brand products, it will continue to operate a portion of its Neenah Nonwovens mill. K-C had announced in July 2006 that it would sell or close the facility by the end of 2008.

“We have experienced excellent growth in both diapers and training pants,” said Bob Stargel, Kimberly-Clark vice president of global nonwovens. “Moreover, we anticipate additional growth from our recent product innovations.” The mill will continue to operate those assets used in the production of synthetic materials for K-C’s baby and child care products and will move other production to its nonwovens facilities elsewhere in the U.S.

Correspondingly, the mill will reduce its current workforce of nearly 130 to approximately 110 early next year through attrition and voluntary retirement.

“I’m pleased we will be able to continue operations in the Fox Valley as a result of the demand for materials produced here,” said Stargel. “In addition, I commend our employees for their success in reducing manufacturing costs, making Neenah Nonwovens cost-competitive with our other facilities.”