Owners of Gwynedd paper towel factory accused of ‘betraying’ workers after announcing closure plans

The owners of a paper towel factory in Gwynedd have been accused of “betraying workers” after announcing plans to shut it.

Northwood Hygiene Products runs the facility in Penygroes and has today said it will start consulting with its 94 staff over the proposed closure.

The company blamed the economic impact of the coronavirus pandemic for the decision, but a leading union has criticised the move.

Unite, which represents over 40 members at the site, is calling on the firm to use the government’s Job Retention Scheme and other support to before coming to a final verdict over the factory’s future.

According to a representative, half of the workforce was furloughed three weeks ago and the union claims that the remaining employees will be registered with immediate effect.

Unite regional officer Daryl Williams said: “This proposal is a betrayal of a loyal and skilled workforce and if enacted will be a huge blow to the Nantlle Vale economy.

“Northwood’s plans to close the site are premature and need to be delayed until after the lockdown has ended and a clearer picture of the general economic situation emerges.

“The government’s Job Retention Scheme was designed to prevent unnecessary redundancies during this crisis and Northwood should wait before making any decisions relating to the site’s future.”

In a statement, Northwood said: “As part of a strategic review of business operations, given the rapidly changing landscape and market conditions, the directors of Northwood Hygiene Products Ltd regret to announce the proposed closure of the Penygroes manufacturing facility, located in North Wales. This proposal affects 94 employees.

“As part of the review, various alternative options were considered, but the contraction in market demand as a consequence of Covid-19, and the subsequent significant fall in current and forecasted sales volumes has led to this very difficult decision being made.

“The company is fully committed to following a consultation process with all employees and trade union representatives and will commence a collective consultation process which will last for a minimum of 30 days.

“The proposed closure will not have a negative impact on the service we provide to our customer base.

“Production will be absorbed, and customers will be serviced from other Northwood sites in Telford, Oldham, Birmingham, Lancaster and Bromsgrove.”