Insolvent tissue company CEL, Spain, is having significant financial difficulties and has announced drastic measures, including the closure of three tissue plants, according to a report this week by EUWID Pulp and Paper.  

Basque trade union ELA reported that the company, which has been bankrupt since July 3, 2017, had submitted a redundancy scheme, 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 In May this year, two major shareholders, which held a stake of 40% and 45%, respectively, have reportedly withdrawn their capital from the company.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 July 3. 

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