Essity Considers Shifting Production to U.S. Amid Tariff Concerns

Hygiene and paper products manufacturer Essity is exploring the possibility of increasing its production in the United States and reducing its reliance on imports from Mexico and Canada in light of potential tariffs imposed by President Donald Trump. However, the company has no plans to close any facilities.

Essity derives approximately 14% of its revenue from the United States, and approximately 10% of the products it sells there are imported, primarily from Mexico and Canada, CEO Magnus Groth told Reuters.

"We are looking into ways, if needed, to move even more of our production into the U.S.," Groth said.

However, Groth emphasized that the company's plants in Canada and Mexico would not be affected by the increased localization of production in the United States, as they would continue to cater to local demand.

Essity operates a personal care facility in Drummondville, Canada, and five tissue, personal care, and medical solutions production sites in Mexico located in Ecatepec, Monterrey, Reynosa, Sahagun, and Uruapan. Three of the Mexican plants produce tissue, according to the company's latest sustainability report for 2023.

In the United States, Essity has eight production sites operating in the same business areas as its Mexican counterparts, a company spokesperson said.

Essity employs approximately 404 people in Canada, 3,800 in Mexico, and 3,200 in the United States.