NANJING - The US-based paper products producer Kimberly-Clark is establishing in Nanjing a new world-class manufacturing center, which will begin production at the beginning of next year, to meet the rising demand of the world's fastest growing consumer market.

More than $100 million has been invested in the Nanjing facility. It will bring together research in production, quality control, as well as project and logistics management, said Mike Zhang, managing director of Kimberly-Clark China.

"The establishment of the Nanjing facility demonstrates our confidence in China and our commitment to Chinese consumers," Zhang said.

In recent years, Kimberly-Clark has seen an annual sales increase of more than 10 percent, and China has become one of its most important markets, said the company.

It added that Huggies, one of its most valuable brands, has gained more momentum with the introduction of high-quality diaper products into the Chinese market.

According to China Paper Association, the country's baby diaper market has exceeded 18 billion yuan ($2.85 billion), with an annual increase of 15 to 20 percent.

Though China's baby diaper market has developed rapidly, considering Chinese parents' acceptance and the average expenditure on baby diapers, there is still huge market potential, said Kimberly-Clark.

"Between the year 2010 and 2015, there are about 110 million Chinese women of childbearing age that are aged 20 to 29," said Jiang Manxia, secretary-general of the diaper paper and disposable paper department under the China Paper Association. "The consumption of baby diapers will increase greatly."

The association also said that by 2010 China had 500 baby diaper manufacturers, but foreign brands topped in both sales and revenue.

According to China's Baby and Infant Product Research Center, the top 10 manufacturers occupied 72 percent of the baby diaper market in 2010.

Kimberly-Clark said that in the Chinese market, it competes fiercely with the Chinese brand Anerle and foreign brands such as Pampers, Kao and MamyPoko.

Kimberly-Clark said that with the establishment of Nanjing facility, manufacturing cost and delivery time of orders will both be reduced greatly, because East China, in which Nanjing locates, is the most important market of baby diapers.

The inventory management, product development and techniques used will also be improved to help increase market share, said the manufacturer, adding that Kimberly-Clark USA has designed and produced a fully-automated production line to ensure the efficiency of the Nanjing facility.

Entering the Chinese market in 1994, Kimberly-Clark now has three manufacturing facilities in Beijing, Nanjing, and Shanghai respectively, producing and selling brands such as Kotex, Huggies, Kleenex, and Depend.

Contact the writers at cangwei@chinadaily.com.cn and songwenwei@chinadaily.com.cn