Panrico said it has signed a preliminary agreement for the continuation of production at the plant

Panrico said it has signed a preliminary agreement for the continuation of production at the plant

Spanish baker Panrico has reached an agreement with unions that will safeguard the future of its Valladolid facility in north-central Spain.

Panrico said it has signed a preliminary agreement for the continuation of production at the plant, which has involved the agreement of a 12.5% reduction in wages and longer working hours for its 200 staff employed at the facility.

"Panrico again reiterates that its primary objective remains to ensure the survival of the group, at a time of consumption market downturn, which has directly affected sales of the company's brands," the company said today (31 October).

The request is part of a restructuring plan being undertaken by the firm in order to gain profitability. In May, Panrico announced plans to close its production facility in Seville in a bid to "remain competitive", resulting in 197 job losses.

In July the firm closed a bakery in Stantiago, and last month announced plans to restructure the group's industrial operations and reduce its cost structure, focus on higher value-added brands and improve management at the point of sale.