Essity Restructures Its Consumer Tissue Production in France
Essity announced plans to close a tissue converting facility in Saint-Etienne-du-Rouvray (France) during the fourth quarter of 2018.
July 31, 2018 - Essity announced plans to close a converting facility for retail branded products in Saint-Etienne-du-Rouvray as part of a restructuring of its Consumer Tissue production in France. The closure is expected during the fourth quarter of 2018.
Essity said it will, however, invest in the remaining integrated production facilities in France.
In a press release, Essity said, “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, of which approximately SEK 430 million is expected to be recognized as an item affecting comparability in the third quarter of 2018. The remaining costs are expected to be recognized as an item affecting comparability in 2019. Approximately SEK 320 million of the restructuring costs are expected to impact cash flow. Total investments will amount to approximately SEK 210 million.
Essity is a leading global hygiene and health company dedicated to improving well-being through our products and solutions, essentials for everyday life. To learn more, please visit: www.essity.com.