Essity could move more production into US if | Stock News

By Agata Rybska

(Reuters) – Swedish hygiene product and tissue maker Essity might transfer more of its manufacturing into the U.S. from Mexico and Canada if tariffs are launched by President Donald Trump, however shouldn’t be contemplating plant closures, CEO Magnus Groth mentioned on Thursday.

Essity generates some 14% of its gross sales within the U.S. and 10% of the merchandise bought there are imported, primarily from Mexico and Canada, Groth informed Reuters in an interview.

“We’re looking at ways, if needed, to move production even more into the U.S.,” he mentioned.

Groth mentioned, nonetheless, that the plants in Canada and Mexico wouldn’t be impacted by U.S. manufacturing changing into more native, as they’d nonetheless cater to native wants.

Essity has one plant making personal care merchandise in Drummondville, Canada, and 5 manufacturing services for tissue, personal care and medical options in Mexico, situated in Ecatepec, Monterrey, Reynosa, Sahagun and Uruapan. Three of the Mexican plants produce tissue paper, in line with its latest sustainability report for 2023.

It has eight manufacturing services within the U.S., working in the identical business areas because the Mexican ones, a company spokesperson mentioned.

Essity employs 404 people in Canada, 3,800 in Mexico and three,200 in america. (This story has been corrected to say that the plant in Canada makes personal care merchandise, not tissues, in paragraph 5)