Thursday, September 27, 2018

Essity invests US $ $160 million in expansion of its plants until 2019

The Mexico is the first Latin America's most important market and the seventh in the world in terms of sales of Swedish company Essity, owner of brands such as Saba, Regio and Tena. The group goes to invest 160 million dollars by 2019 for the expansion of its factories and distribution centers in the country. "Once we present our five-year plan where we want to double the size of the company (sale price) and tripling profits, we need increased investment to improve and increase infrastructure in the Mexican market," says Atilano Sanchez, CEO of Essity consumption in Mexico and Central America, in an interview. This investment is intended to three projects, one of which was announced in 2017 for the factory in Ciudad Sahagun, Hidalgo, where allocated $ $105 million to increase the production capacity of paper. The second investment is 45 million, to increase the categories of personal care, sanitary infrastructure and female incontinence, with its brands Saba and Tena, who had double-digit growth over the past five years. And 10 million dollars to improve the logistics distribution centres. What moves the business? The Manager explains that the absorbent feminine category, where they have a presence with your mark Saba, recorded a significant growth in the last four years, as your category of tissue paper (toilet paper, kitchen rolls, handkerchiefs and napkins brands such as Regio) and the portfolio of products for treatment of incontinence (Tena). "We have consolidated our brands on the market and we believe in the country for the demographic bonus that we have, because we're an emerging market and have strong institutions, while we have people with experience and youth" Atilano shared Sanchez. The Executive explained that some categories, like incontinence, have been driven by the growth of the elderly population. "In the next few years, the average age of the population will increase and this will cause the size of the category grow," he added. According to data from the National Institute of statistics and geography (INEGI), cited by the National Institute of older persons (INAPAM), Mexico has 12.4 million people with more than 60 years, representing approximately 10% of the population. the country's total. The company was formed 15 months ago as a result of the merger of the Swedish company SCA, which kept the forest business and left Essity with the Hygiene Division, the moment in which a new business doctor was added through the acquisition of BSN Medical. The company has five factories, as a legacy of Division of SCA, including Ciudad Sahagun, Hidalgo, where the paper is produced for the tissue brand categories Regio and Tork, once in Uruapan, Michoacán, another in Monterrey, in addition to a factory in Ecatepec , which is the second largest of the Group and produces the brand names Saba and Tena, and one in Reynosa, Tamaulipas, where are manufactured medical products. The Essity invests between 4% and 5% of their total sales in the area of innovation, which includes the Division of research and development, as well as the adequacy of the factories and communication by releases made in the market.
Tissue on line - 25/09/2018 News Item translated automatically
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