EMCC European Monitoring Centre on Change

Zirconio

Company/Organisation:
Zirconio

Geographic Location

Country: Spain
Region: Castellón / Castelló; Comunidad Valenciana; Este
Location of affected unit(s): Villareal

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
23.31 - Manufacture of ceramic tiles and flags
Number Employed: 169
Group: Niro Cerámica España

Employment Effects

Announcement Date: 18-04-2018
Planned Job Reductions min: 125
Type of Restructuring: Outsourcing
Employment Effect Start: 01-04-2018
Direct Dismissals: 125

Additional Information

Ceramic tile manufacturer Zirconio, located in Villareal (Spain), decided to stop its manufacturing operation (closing furnaces facilities), and to outsource its production. As a result, 125 employees will be dismissed. However, the company will maintain its marketing and logistics operation departments with 44 employees.

The company was purchased in 2013 by Niro Group of Malaysia. The layoff was implemented after several years of financial losses. The decision comes at a time when the company had to decide between outsourcing production or to undertake an important investment to modernise its production plant, an option not accepted by the Malaysian group. The layoff package includes compensation payments of 25 working days for each year in the company up to a maximum of 15 years and agreements with Social Security to ease pre-retirement plans for workers over 55 years old.