Gwynedd Council pledges to to support Northwood Hygiene employees following factory’s closure

Gwynedd Council has committed to “turn every stone” and help a community secure new employment for 94 people following the closure of a tissue paper factory.

Northwood Hygiene Products announced in May that it planned to close its Penygroes plant by the end of October, blaming  a drop in demand from key buyers during the coronavirus pandemic.

The company plans to move manufacturing to factories in England, but the move has been condemned locally.

Following a meeting with representatives from the local community, the cabinet member for the economy has underlined Gwynedd Council’s commitment to revitalise the site and secure new employment.

“Since the company’s announcement that they plan to close their factory, the council has been in discussions with partners to consider all options to ensure that this important site in Penygroes has a bright future,” said Cllr Gareth Thomas.

“This factory has been a key employer for many Dyffryn Nantlle families over the years.

“It is clear from the local discussions we’ve had with residents and community groups in the area that there is a strong desire to find a long-term option that can continue to offer good employment opportunities on the site.

“As a council, we will do everything we can to facilitate this work and support this desire from the Dyffryn Nantlle community to find a local solution.

“We will continue to work with any potential owners who are interested in taking over the factory. Our priority is to secure employment on site.

“The reality is that the Northwood announcement follows a pattern that can be seen of firms announcing sudden decisions to close production sites which are of real importance to local economies.

“In such cases, the decisions to close are taken by companies whose headquarters are far beyond Gwynedd.

“However, they have a far-reaching impact on the ability of our families here in Gwynedd to put food on the table every week.

“It underlines the importance of the need for us to think long-term about a model that will offer local ownership and control over our large employers.

“I am grateful to the Dyffryn Nantlle community for their willingness to discuss their vision with us.

“We agree that this site in Penygroes offers the opportunity to think innovatively together with the local community to offer sustainable and stable employment for the future.

“We will turn every stone in our efforts in working with the community on this goal.”

Hywel Williams MP and Siân Gwenllian MS have criticised the company, believing that they haven’t taken into consideration the impact of its closure on local workers and their families.

In a joint statement they said: “To rub salt in the wound, the company has come up with a paltry redundancy package which in no way reflects the years of commitment and hard work so many of the workers have given the company, not least in recent months when demand for its products soared.

“Some workers will receive very little and be immediately forced onto Universal Credit, whilst others who have given years of loyal service to the company will only get the very minimum pay-out allowed.”

Announcing the closure of the plant, Northwood Hygiene Products said “the subsequent significant fall in current and forecasted sales volumes has led to this very difficult decision”.

Production will continue at its other sites in Telford, Oldham, Birmingham, Lancaster and Bromsgrove.

By Gareth Williams – Local Democracy Reporter