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Essity Restructures in Chile

Plan affects tissue, professional hygiene businesses

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By: Karen McIntyre

Editor, Nonwovens Industry

Essity is restructuring its production facility in Santiago, Chile to further improve quality and costs 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 and increase cost and capital efficiency and further increase value creation in both business areas.

The measure includes the closure of one tissue machine and two converting lines. Costs amount to about SEK 140 million, $17 million, and will be recognized as an item affecting comparability in the first quarter of 2018. About SEK 30 million,  or $3.6 million, of these are expected to impact cash flow.

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