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Essity continues optimisation program with closure of Arizona converting plant
To further increase the efficiency of the Professional hygiene business, Essity is closing its converting facility in Bellemont, Arizona, US. The closure will be completed in the second half of 2019 without any disruption to customers and production will be reallocated to other Essity production facilities in the US.
The measures are aligned with the company's strategy to optimise 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 150m which is expected to be recognised as an item affecting comparability in the third quarter of 2018. Approximately SEK 30m of the restructuring costs are expected to impact cash flow.
Headquartered in Stockholm, Sweden, Essity has about 48,000 employees and net sales in 2017 amounted to approximately SEK 109bn (EUR 11.3bn). Its products are used in approximately 150 countries.
20th September 2018