Mill move is part of a plan, Tejidos Royo says
Denim fabric manufacturer Tejidos Royo has said concentrating its production at its Alcúdia de Crespins site is part of “an ambitious transformation plan”.
Its plan is to move its fabric mill and finishing operations from Picassent, 50 kilometres away, to Alcúdia de Crespins, where it already runs its spinning and dyeing operation.
Tejidos Royo has said the plan will involve an investment of €13 million and that this is part of a strategy aimed at “ensuring continuity and competitiveness in a sector facing serious challenges”.
It also explained that Alcúdia de Crespins is the town where the company was founded in 1903 and that concentrating its production there represented a return to its roots.
It will renovate the site and build new facilities “to adapt to the challenges of the twenty-first century”. The plan will help the manufacturer become more flexible and more efficient, company president, José Royo, said.
The company acknowledged that the decision had caused some disquiet among its workforce, but explained that a planned two-day strike in mid-July had not gone ahead because the management team had reached an agreement with a workers’ representative committee in time.
“Change brings uncertainty, but we have tried to respond to concerns without losing sight of the economic reality we are facing,” Mr Royo said. “Many of our employees believe in this project and have expressed their support.”
He explained that the current economic climate was “particularly adverse” for the textile industry. He insisted the sector had not yet recovered from the effects of the covid-19 pandemic. “Everything has changed,” he added, “including consumer preferences, access to finance and demand.”
He concluded that Tejidos Royo offered a level of quality that some sectors no longer value, but that the company had decided to focus on customers that do value quality. “We believe that we still have a lot to offer,” he said. “This company has a soul and we are determined to keep it aliv
