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, as the company says in the press release received by Lesprom Network.
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 ($7.35 million), of which the majority is related to investments in Altopascio, Italy. The restructuring costs will amount to approximately SEK 580 million ($7.25 million), of which SEK 350 million ($4.4 million) are expected to impact the 1Q 2018 and the remaining costs are expected to impact the 2Q 2018. The costs will be recognized as an item affecting comparability.
