Essity to Invest SEK 590 Million at its Altopascio Facility in Italy

To further strengthen the competitiveness of the Professional Hygiene business in Europe, Essity has decided to invest in creating a center for napkin production in the existing production facility in Altopascio, Italy. This will strengthen Essity’s product offering, with the leading global brand Tork, and increase efficiency in the supply chain. The investment in Altopascio will lead to restructuring measures at multiple production facilities across Europe in the coming years. 

The activities are aligned with the company’s strategy to optimize the geographic production footprint to increase cost and capital efficiency and further increase value creation in the Professional Hygiene business area.

The restructuring measures include the closure of a converting production facility in Hlohovec, Slovakia, in 2020.

The total investments will amount to approximately SEK 590 million, of which the majority is related to investments in Altopascio. The restructuring costs will amount to approximately SEK 580 million, of which SEK 350 million are expected to impact the first quarter of 2018 and the remaining costs are expected to impact the second quarter of 2018. The costs will be recognized as an item affecting comparability. Approximately SEK 410 million of these costs are expected to impact cash flow.

Essity is a leading global hygiene and health company. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as Jobst, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 48,000 employees and net sales in 2017 amounted to approximately SEK 109 billion (EUR 11.3 billion). The headquarters is located in Stockholm, Sweden.