Swedish Hygiene Giant Essity Considers Shifting Production to US Amid Tariff Concerns

Essity, a major hygiene and tissue manufacturer, is exploring options to move more production to the United States from Mexico and Canada in response to potential tariffs from the Trump administration.

Currently, Essity generates 14% of its sales in the US, with 10% of its products sold there being imported from Mexico and Canada. CEO Magnus Groth stated that the company is analyzing ways to increase domestic production in the US if necessary.

Despite the potential shift, Groth emphasized that Essity has no plans to close down its facilities in Canada and Mexico. These plants will continue to serve local markets and meet regional demand.

Essity's Canadian operation in Drummondville primarily focuses on personal care products, while its five Mexican facilities produce a range of products, including tissue, personal care solutions, and medical devices. Three of these Mexican plants are involved in tissue production.

In the US, Essity operates eight production facilities, covering the same business areas as its Mexican counterparts. The company employs approximately 404 people in Canada, 3,800 in Mexico, and 3,200 in the United States.