Artziniega, Spain 07 August 2017 -- Spain's insolvent tissue products company CEL is in difficulties and has announced drastic measures. The company plans to close three production sites, eliminating more than 230 jobs.

Spanish tissue products manufacturer CEL Technologies & Systems (CEL) is in financial difficulties and has announced drastic measures. The company plans to close down three of its four production sites in Spain.

Basque trade union ELA reported that the company, which has been bankrupt since 3 July, had submitted a redundancy scheme (expediente de regulación de empleo - ERE) which provided for the elimination of all jobs at the plants Ecofibras Aranguren, Celulosas Aranguren and CEL Technologies & Systems Issue.

More than 230 employees would be affected by the measure, the trade union added. In case of implementation, the plant Dermo Products Development would remain the company's only site.

According to ELA, CEL has been in financial difficulties for quite some time. In May this year, two major shareholders, which held a stake of 40% and 45% respectively, have reportedly withdrawn their capital from the company. CEL had not been able to pay its electricity bills and, lacking energy supply, had had to stop production, said the trade union. Insolvency procedures were then opened on 3 July.

ELA explains that potential investors have shown interest in the company. "This is not the right time to present a redundancy plan", the union complained, adding that it requested the plan to be revoked. Instead, an industrial plan for the future should be established.

CEL manufactures deinked pulp, parent tissue rolls as well as tissue products such as kitchen rolls, toilet paper and couch rolls. The company also produces liquid and foam soaps for professional use. Its sites are located in Artziniega and Aranguren in northern Spain.