Essity is restructuring its production facility in Santiago, Chile, to further improve quality and cost for the Consumer Tissue and Professional Hygiene businesses in the country. 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 and Professional Hygiene business areas.
The restructuring measures include the closure of one tissue machine and two converting lines.
The restructuring costs amount to approximately SEK 140m, and will be recognized as an item affecting comparability in the first quarter of 2018. Approximately SEK 30m of these costs are expected to impact cash flow.
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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