Stockholm, Sweden 18 September 2018 -- To further increase the efficiency of the Professional Hygiene business, Essity is closing its converting facility in Bellemont, Arizona, United States.
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 United States. 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 150m which is expected to be recognized as an item affecting comparability in the third quarter of 2018. Approximately SEK 30m of the restructuring costs are expected to impact cash flow.
Essity is a leading global hygiene and health company dedicated to improving well-being through our products and solutions, essentials for everyday life. The name Essity stems from the words essentials and necessities. Our sustainable business model creates value for people and nature. 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 109bn (EUR 11.3bn). The headquarters is located in Stockholm, Sweden, and the company is listed on Nasdaq Stockholm. More information at www.essity.com.