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

By Agata Rybska

(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.

© Reuters. FILE PHOTO: Essity products are seen on display at the venue of a presentation to investors by the hygiene product  company in Stockholm, Sweden May 23, 2019. REUTERS/Anna Ringstrom/File Photo

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.

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