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, as the company says in the press release received by Lesprom Network.
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 150 million ($17 million) which is expected to be recognized as an item affecting comparability in the 3Q 2018. Approximately SEK 30 million ($3.4 million) of the restructuring costs are expected to impact cash flow.
Essity is a leading global hygiene and health company. Essity used to be part of the SCA Group.
