Ence will transform its Huelva mill in an advanced renewable energy site, which will be an important driver of forest management in Andalusia. The company, on the other hand, will cease production of cellulose, since it drags heavy losses for three consecutive quarters due to its cost inefficiency and lack of domestic wood.
Given this unsustainable economic situation -which has resulted in a loss of € 48.6 million in the first half of 2014 for the company-, and in order to implement this transformation plan, Ence has reported to the works council its intention to initiate a collective lay-off procedure, which will be accompanied by a program of relocation for 100% of workers in other workplaces and company activities. Ence will also provide, upon request, an external relocation plan and compensation, with the support of a leading outplacement firm.
The company is ready for thorough and good faith negotiations with the representatives of the workers so that the impact on the workforce, consisting of 294 employees, is minimized.
The proposed measure responds to the need to ensure the viability of the company globally, due to the unsustainable increase in manufacturing costs and loss of competitiveness of the factory in a highly competitive pulp world market. All these factors have not been overcome despite the efforts made in recent years to achieve the viability of the factory.
