On January 23 (Reuters) - Essity, a Swedish company specializing in hygiene products and tissues, may potentially relocate more production operations from Mexico and Canada to the United States following potential regulatory changes by President Donald Trump. However, Magnus Groth, the CEO, emphasized that the company is not currently considering shutting down any plants.
Groth mentioned to Reuters that around 14% of Essity's sales come from the U.S., and about 10% of the products sold there are currently imported, primarily from Mexico and Canada. "We are exploring options to shift production further into the U.S. as needed," he stated.
Nevertheless, Groth clarified that the plants in Canada and Mexico would remain unaffected by the localization of U.S. production, as they would continue to serve local markets.
Essity operates one facility manufacturing personal care products in Drummondville, Canada, and five production sites in Mexico handling tissue, personal care items, and medical solutions, located in Ecatepec, Monterrey, Reynosa, Sahagun, and Uruapan. As per its 2023 sustainability report, three of the Mexican plants specialize in tissue paper production.
In the U.S., Essity has eight production facilities that mirror the business areas of the Mexican plants, according to a company spokesperson.
Across these locations, Essity employs 404 individuals in Canada, 3,800 in Mexico, and 3,200 in the United States.