• May 26, 2024

Essentra ‘Reviewing’ its Filter Business

 Essentra ‘Reviewing’ its Filter Business
Photo: Essentra

Essentra is reviewing strategic options for its tobacco filters business, as it looks to focus on its component-making division for other sectors, reports Reuters.

The company, which has supplied filters to cigarette manufacturers for more than 80 years, said the review is expected to finish in the second quarter of 2022.

According to Reuters, Essentra has concluded that it should become a pure play global components business over time and that the strategic review of the filter division was the first step to achieving that.

Essentra’s filter division reported a 2.8 percent rise in revenue in the three months to September.

The company said its components business, which makes plastic molded, vinyl dip molded and metal items used in equipment manufacturing, automotive and electronics, performed strongly in the quarter.

The tobacco industry is facing heavy scrutiny and mounting regulations due to the health risks of its products.

Essentra declined to speculate on whether the firm would divest it cigarette filters business. “As of now, we are unable to comment on the final outcome of the strategic review which is targeted to conclude by second quarter 2022 as it is still ongoing,” a company spokesman told Tobacco Reporter.