Essity Closing Tissue Converting Facility in Arizona
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To further increase the efficiency of the Professional Hygiene business, Essity (Stockholm, Sweden) announced on Sept. 18, 2018 it is closing its converting facility in Bellemont, Ari., USA.
The closure will be completed in the second half of 2019 without any disruption to customers. Production will be reallocated to other Essity production facilities in the U.S. The measures are aligned with the company’s strategy to optimize the production footprint to improve cost and capital efficiency and further increase value creation in the Professional Hygiene business area.
The restructuring costs are expected to amount to approximately SEK 150 million which is expected to be recognized as an item affecting comparability in Q3 of 2018. Approximately SEK 30 million of the restructuring costs are expected to impact cash flow.
