Madrid, Spain 22 August 2013 -- Spain's dissolving pulp and viscose fibre manufacturer Sniace presents new redundancy plan, aims to cut 533 jobs.

Grupo Sniace has filed a new ERE (expediente de regulación de empleo) labour force adjustment plan which would see a collective dismissal of 533 employees. Negotiations with workers representatives about the new redundancy plan are scheduled to start on 23 August, according to the Spanish company. The consultation period will be running for one month until 23 September.

It was only at the end of July that Sniace, after weeks of negotiations with employee representatives, had withdrawn its previous ERE plan aimed at terminating contracts of 364 employees. Instead, the parties involved agreed to temporary lay off all Sniace employees for a period of two months and to continue looking for ways to ensure an economically viable future for the group.

Grupo Sniace is a chemical industrial group active in the pulp, viscose, renewable energies and biofuels markets. Among other things, the company can produce 66,000 tpy of specialty and dissolving pulp, 26,000 tpy of viscose fibres and 122,000 tpy of lignin sulphate. Sniace had stopped production of viscose fibres in mid-January this year. Dissolving production at Sniace’s Torrelavega industrial complex has been standing still since the strikes in early July.

According to Sniace management, the group has got into financial straits due the extra costs related to Spain’s energy market tax reform. On 26 June, the holding company Sniace S.A and its subsidiaries Celltech and Viscocel filed for the opening of pre-bankruptcy (preconcurso) proceedings with the Commercial Court of Madrid. Under the shield of preconcurso proceedings, the group has time until the middle of October to come to an agreement with creditors, restructure its debt and avoid bankruptcy.