Essity is closing a converting facility for retail branded products in Saint-Etienne-du-Rouvray and invests in remaining integrated production facilities in France. The closure is expected during the 4Q 2018, as the company says in the press release received by Lesprom Network.
These measures are aligned with the company’s strategy to optimize the production footprint to increase cost and capital efficiency and further increase value creation in the Consumer Tissue business area.
The restructuring costs are expected to amount to approximately SEK 480 million (54.6 million), of which approximately SEK 430 million (48.9 million) is expected to be recognized as an item affecting comparability in the 3Q 2018. The remaining costs are expected to be recognized as an item affecting comparability in 2019. Approximately SEK 320 million (36.4 million) of the restructuring costs are expected to impact cash flow. Total investments will amount to approximately SEK 210 million (23.9 million).
Essity is a leading global hygiene and health company. Essity used to be part of the SCA Group.
