Essity considers shifting part of its production to the U.S. in response to potential tariffs
Swedish manufacturer rules out closing factories in Mexico and Canada, but evaluates adjustments to serve the U.S. market
Essity, the Swedish multinational specializing in hygiene and tissue products, is considering transferring part of its production from Mexico and Canada to the United States if tariffs are introduced, according to CEO Magnus Groth. However, the company has ruled out closing its facilities in neighboring countries.
The United States accounts for 14% of Essity’s global sales, with 10% of the products sold there being imported primarily from Mexico and Canada. “We’re looking at ways, if needed, to move production even more into the U.S.”, Groth told Reuters.
Groth emphasized that the factories in Canada and Mexico would remain operational to meet local demand. Essity operates a personal care plant in Drummondville, Canada, and five facilities in Mexico – Ecatepec, Monterrey, Reynosa, Sahagun, and Uruapan – with three of them dedicated to tissue production, according to the company’s 2023 sustainability report.
In the United States, Essity runs eight factories in similar business segments to those in Mexico. The company employs 404 people in Canada, 3,800 in Mexico, and 3,200 in the United States.
