Essity announces further closures in Spain

06 Apr 2018 − 

Essity's restructuring in Europe is progressing. The company has now announced the closure of its La Riba plant and of a TM in Allo.

Essity has again announced closures as part of the restructuring of its Consumer Tissue business. The measures envisaged this time relate to the activities in Spain. The Swedish company announced that it would close a tissue machine at the Allo plant as well as the entire La Riba site in the course of this year. Restructuring costs are expected to be approximately SEK245m (around €24m).

Essity is currently restructuring its European activities, which is having an impact on many of its plants. The company says it aims at optimising its production footprint and becoming more cost-efficient. In this context, the company has already announced several closures, production relocation projects and also new investments. One of the fundamental projects is the construction of a napkin production centre with eleven converting lines at the existing Altopascio plant in Italy. Essity plans to transfer its entire napkin production to the site. As a result, production capacities from the Ortmann plant in Austria or from Hondouville in France, for instance, will be relocated. According to French trade unions, there are also concrete plans to shut down the Saint-Étienne-du-Rouvray site in France. The Hlohovec plant in Slovakia is to be closed as well.

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