Kimberly-Clark Corporation Selects Avery Dennison As Gen 2 RFID Inlay Provider
DALLAS (February 28, 2006) ─ Avery Dennison RFID, a business unit of Avery Dennison Corporation (NYSE: AVY), and a leading provider of low cost, high quality radio frequency identification (RFID) inlays, today announced at the Fourth Annual RFID World Conference and Exhibition, that Kimberly-Clark Corporation (NYSE: KMB), has chosen the Avery Dennison AD-220 RFID Gen 2 inlay for their RFID program.
“This is a significant event in the development of Avery Dennison’s RFID business and for the progress of RFID implementation in supply chain systems,” said Mathew Mellis, vice president of Avery Dennison RFID. “This is not simply an end-user specifying our inlays for their RFID deployment. This is an opportunity for Avery Dennison to collaborate with one of the true thought leaders in the RFID arena who shares our vision of leveraging RFID to improve the return on investment throughout the global supply chain.”
As an active participant in EPCglobal, Kimberly-Clark worked with other industry leaders to establish the now-familiar Gen 2 standard, which offers significant advantages over earlier technologies, including multiple sources of supply, more consistent performance, and much faster write times.
“For Kimberly-Clark, implementing RFID technology into our supply chain operations is more than meeting customer needs. It’s about partnering with our customers to improve fundamental business processes and ensure we deliver the right product to the right customer at the right time,” said Mike O’Shea, director of Auto-ID Sensing Technology for Kimberly-Clark.
Kimberly-Clark established its own state-of-the-art RFID research lab in Neenah, Wis., which allows Kimberly-Clark to test RFID tags in an environment that very closely matches real-world supply chain conditions. This capability is key in facilitating Kimberly-Clark’s leadership in RFID deployment.
“Kimberly-Clark’s selection of Avery Dennison RFID for its Gen 2 implementation came after rigorous testing of the AD-220 inlay product on a variety of SKUs in our EPC-certified lab,” said Gary Clement, Auto-ID Sensing Technologies’ manager of Technology Development at Kimberly-Clark. “We were looking for a supplier who provided a quality and cost-effective product and had an in-depth understanding of the potential benefits RFID offers.”
Avery Dennison anticipates a rapid increase in sales of Gen 2 inlays in 2006. As previously announced, the Company is targeting approximately $10 million in revenue from RFID inlays this year, including sales related to Kimberly-Clark’s implementation plans, as well as those of other key end-users and converters expected to be announced in the coming months.
About Avery Dennison RFID
Avery Dennison RFID, a business unit of Avery Dennison Corporation (NYSE:AVY), manufactures and markets RFID tags through a network of label converters to serve the consumer packaged goods and pharmaceutical industries, as well as the U.S. Department of Defense. With design, testing and manufacturing facilities located in the U.S. and Europe, Avery Dennison RFID is a leading provider in the global RFID marketplace. For additional information about Avery Dennison RFID and the company’s complete portfolio of RFID tags, visit www.rfid.averydennison.com.
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people—nearly a quarter of the world’s population—trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80 countries. To keep up with the latest K-C news and to learn more about the company’s 134-year history of innovation, visit www.kimberly-clark.com.
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Certain information in this release may constitute “forward-looking” statements, which are subject to certain risks and uncertainties. Actual results and trends may differ materially from expected results depending on a variety of factors, including but not limited to supply chain strategies of customers; development, introduction and acceptance of new products; and the impact of economic conditions on demand for the Company’s RFID products.
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