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Management Side
Essity to strengthen the Professional Hygiene business in Europe

ITALY (News release) -- To further strengthen the competitiveness of the Professional Hygiene business in Europe, Essity has decided to invest in creating a center for napkin production in the existing production facility in Altopascio, Italy. This will strengthen Essity's product offering, with the leading global brand Tork, and increase efficiency in the supply chain. The investment in Altopascio will lead to restructuring measures at multiple production facilities across Europe in the coming years.

The activities are aligned with the company's strategy to optimize the geographic production footprint to increase cost and capital efficiency and further increase value creation in the Professional Hygiene business area.

The restructuring measures include the closure of a converting production facility in Hlohovec, Slovakia, in 2020.

The total investments will amount to approximately SEK 590m, of which the majority is related to investments in Altopascio, Italy. The restructuring costs will amount to approximately SEK 580m, of which SEK 350m are expected to impact the first quarter of 2018 and the remaining costs are expected to impact the second quarter of 2018. The costs will be recognized as an item affecting comparability. Approximately SEK 410m of these costs are expected to impact cash flow.

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