Through its recently launched Project CORE capacity optimization and resource efficiency program, Magnera plans to save upwards of $20 million as it enters fiscal 2026. Magnera executives announced the initiative, which is intended to improve earnings growth, strengthen competitiveness and enhance operational efficiency by rationalizing and consolidating the company’s global capacity.

“The program represents a significant step forward in optimizing our global capacity and cost reduction and positioning us to deliver improved financial performance over the medium to long term,” says CFO Jim Till.

Amidst challenges in the global hygiene business, particularly in Latin America where Magnera operates several large spunmelt assets, the company has conducted a thorough evaluation of its portfolio and identified areas of opportunity for savings. From a capacity optimization standpoint, this will lead to an idling of approximately 5% of Magnera’s global production capacity.  The company will provide additional details on which of its 46 global sites are being impacted by this global program during its next quarterly earnings call.

”As we optimize the company for earnings growth, we have evaluated the business thoroughly and determined additional structural cost actions are appropriate to support sustainable profits,” says CEO Curt Begle. “We have launched Project CORE to accelerate capacity rationalization plans, including operational consolidation to more cost-efficient platforms.”

He adds that some of the capacity realignment efforts have already begun and additional measures will be implemented as the company identifies the greatest opportunities for cost savings.

For the third quarter, Magnera reported sales of $839 million and adjusted EBITDA of $91 million with stable demand in the Americas consumer solutions business and Asia personal care segment. Meanwhile, product mix challenges in South America contributed to a $9 million decline in EBITDA for the Americas division.

Highlights of the quarter included the introduction of a full suite of airlaid feminine care solutions, which achieved a new 2026 business award, as well as the expansion of food and beverage offerings through the development of an advanced food protection solution to increase the shelf life of a final product. Additionally, Magnera has expanded its business with a long-term U.S.-based global customer into the European wipes market.