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

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 plant making personal care products 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.

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. (This story has been corrected to say that the plant in Canada makes personal care products, not tissues, in paragraph 5)