Penygroes tissue factory closure plan puts 94 jobs at risk

The factory is based at Penygroes, near Caernarfon

A total of 94 factory jobs are at risk with the proposed closure of a tissue paper plant which has been blamed on the coronavirus pandemic.

Northwood Hygiene Products said it was holding talks with staff and unions on closing its site at Penygroes, Gwynedd.

The company said its decision was the result of a "contraction in market demand as a consequence of Covid-19".

The Unite union said the decision was "premature" and should be "delayed".

• Big jump in number claiming out-of-work benefits

• More than 2,000 deaths in Wales with Covid-19

It said about half the workforce had been furloughed and it understood the firm was planning to register more staff to receive UK government financial aid.

"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," said Unite regional officer Daryl Williams.

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.