Diaper Production Resumes at Former K-C site in Calatayud, Spain

K-C announced plans to close the Calatayud tissue converting facility within the framework of the strategic changes in its western and central European businesses it initiated in 2012 and which aimed at exiting the diaper category in the region, with the exception of the Italian market, and divesting or exiting some lower-margin businesses, mostly in the consumer tissue segment. Around 200 people lost their jobs when the site shut up shop in May 2013.

In April last year, the municipality of Calatayud announced that Hygiene Care Company was planning to invest some Euro 2.5 million ($2.7 million) and create new jobs at the former K-C site. Hygiene Care Company looks back at a history of more than 15 years in the nappy and personal hygiene markets in Syria and Lebanon and has expanded its presence in northern Africa in recent years.

Following the closure of the Calatayud plant in 2013, the company acquired one of the converting lines of the former K-C facility and relocated it to Libya. 

However, due to the instability in the country, it was later decided to move the operations back to Calatayud. The move was reportedly also motivated by the incentives offered by the city of Calatayud. The latter agreed to provide Euro 75,000 per year during the first five years in lease support as well subsidize the installation of some initial equipment with Euro 225,000.

"The installation of the initial machinery involves an investment of Euro 2.5 million and, according to [Hygiene Care Company’s] forecasts, will be completed within three months. From this time on, the site will be operated in a one-shift mode, creating jobs for around 18 people," the municipality said in April last year. "The first production will be destined for Morocco, Ghana, Libya and Lebanon. Subsequently, operations will be extended to a second and third shift, while increasing investment in new machinery. All in all, Hygiene Care Company intends to generate 80 jobs in five years," it added.

In December, the municipality of Calatayud announced that diaper production had been restarted. "Right now, the company is in a trial phase during which it provides jobs for nine people. More will be incorporated progressively during the next few months until the stated goal of 18 jobs in the first phase of the project implementation has been achieved," it said in a statement, adding that the Calatayud site is currently able to produce more than 500 diapers per minute.