VALENCIA, Spain—Polyurethane foams specialist Recticel S.A. has announced plans to shut down a Spanish foam production facility in La Eliana near Valencia.
The plan is to move the production capacities to nearby Catarroja, where Recticel has another manufacturing site. The company said 16 jobs will be cut as part of the closure, along with 12 more jobs cut within the IPF engineering department of its subsidiary Recticel, Iberica.
Although the company announced a small increase in automotive sales during the third quarter, the general trend reflected downward sliding revenue for the period against last year, with a 2.7 percent drop to $423.3 million. The third quarter results followed slides in both of the year's first two quarters of 9.5 percent and 4.4 percent, respectively.
In the first nine months of 2013, the company recorded revenues of $1.292 billion—a 5.6 percent reduction against the same period in the previous year.
The company saw its business in bedding increase 2.7 percent. Flexible foams was down 1.5 percent and insulation fell slightly at .5 percent. In contrast, the automotive segment shrank 13.6 percent against the same period in 2012.
The company's management said it will continue restructuring activities for the rest of 2013.