Intermoney | Ence (ENC) (Buy, Target Price £4 per share) announced on Friday that it has reached an agreement with the company’s employee representatives to implement a collective redundancy plan (ERE) that will affect its Navia plant (Asturias). The agreement between the company and the workers provides for the elimination of 44 jobs by 31 December 2027, as well as the relocation of another 40 people to other companies in the group (probably in the sustainable packaging manufacturing business); these relocations will take place throughout 2026 and 2027, and may be extended until mid-2028.
Assessment: The measure is part of the Efficiency and Competitiveness Plan launched by ENCE last October, which, between 2025 and 2027, will involve the implementation of artificial intelligence solutions, as well as process re-engineering and automation measures and the optimisation of its production processes.
The aim of the plan is to achieve annual savings of €22/tonne of cellulose, with an estimated cash outflow of €26 million over the entire plan (approximately 60% in 2026 and the remaining 40% in 2027). The redundancy plan announced now is in addition to the one agreed in December for its Pontevedra plant, which envisages the loss of up to 57 jobs between 2026 and 2027. Together with the new plan for Navia, this will mean the loss of 101 jobs, 8% of its workforce.
