Spanish baker Panrico has declined to comment on reports it has asked staff at its Valladolid facility in north-central Spain to accept a pay cut in order to avoid closure of the plant.

According to local reports, the company has told the 200 employees of the facility they must accept a 15% reduction in wages and an increase in their working day in order to avoid closure of the plant.

The request is part of a restructuring plan being undertaken by the firm in order to gain profitability, according to La Informacion.

A spokesperson for the company, however, declined to comment on the reports. He said: “The company neither confirm nor deny this information.”

It is understood staff members have agreed to take time to consider the offer.

In May, Panrico announced plans to close its production facility in Seville in a bid to “remain competitive”, resulting in 197 job losses.

The company said the closure, which saw production move from Seville to Panrico’s Puente Genil-based facility in Andalusia, was in keeping with its strategic plan to “optimise production units and remain competitive in the current economic crisis”.