Essity could move more production into US if tariffs are introduced, CEO says (updated)

Essity AB (publ)

23/01/2025 10:34

(Adds details on production facilities in paragraphs 5-7)
    By Agata Rybska
       Jan 23 (Reuters) - Swedish hygiene product and tissue
maker Essity could move more of its production into the U.S.
from Mexico and Canada if tariffs are introduced by President
Donald Trump, but is not considering plant closures, CEO Magnus
Groth said on Thursday.
    Essity generates some 14% of its sales in the U.S. and 10%
of the products sold there are imported, mainly from Mexico and
Canada, Groth told Reuters in an interview.
    "We're looking at ways, if needed, to move production even
more into the U.S.," he said.
    Groth said, however, that the plants in Canada and Mexico
would not be impacted by U.S. production becoming more local, as
they would still cater to local needs.
    Essity has one tissue plant in Drummondville, Canada, and
five production facilities for tissue, personal care and medical
solutions in Mexico, located in Ecatepec, Monterrey, Reynosa,
Sahagun and Uruapan. Three of the Mexican plants produce tissue
paper, according to its latest sustainability report for 2023.
    It has eight production facilities in the U.S., operating in
the same business areas as the Mexican ones, a company
spokesperson said.
    Essity employs 404 people in Canada, 3,800 in Mexico and
3,200 in the United States.

 (Reporting by Agata Rybska in Gdansk; editing by Milla Nissi)
 ((gdansk.newsroom@thomsonreuters.com;))