A mass layoff plan has been filed as an ERE by the Duro Felguera group and was handed to the workers’ representative yesterday for negotiation. The proposal targets workers at four group entities: the parent company, Duro Felguera, SA, plus its subsidiaries DFOM, Mompresa, and Felguera IHI. The collective dismissal would be carried out strictly in Asturias business centers. Collectively, these four firms employ 607 workers in the region, while the group’s total workforce stood at 1,067 employees at the end of the previous year.
Other subsidiaries, such as DF Oil & Gas, which do not currently have appointed employees, will be excluded from this measure; Duro Felguera Calderería Pesada, responsible for the Gijón capital goods workshop, Madrid technology company Epicom, and the newly formed DF Green Tech for the energy transition are also outside the scope.
The company informed the workers’ representative that this is a necessary and important step to preserve the group’s viability, profitability, and future competitiveness, given that the current workforce size exceeds the present business volume. It expressed willingness to reach an agreement and indicated that the number of layoffs and the financial terms of departures would be negotiated with the unions. The company conveyed optimism about achieving a positive deal.
Last year, the group received a rescue package comprising a 120 million euro contribution from the central government, a 6 million euro contribution from the Principality, and an agreement to refinance and restructure debt with creditor banks. Since then, Duro Felguera has repeatedly resorted to temporary workers’ regulation filings from April 15, 2020, to March this year in order to curb labor costs and adjust the active workforce to the evolving workload. No new measures have been taken recently, and cash flow remained tight.
In recent years, the company has faced significant volatility due to the Covid-19 pandemic and the war that began in 2020, followed by a sequence of economic crises. This environment coincided with a notable level of voluntary departures among employees. Between 2018 and the end of 2021, the workforce fell by 787 employees, a 42% decrease—from 1,850 to 1,067 workers.
Despite the leaner structure, the company estimates that if the future turnover lies between 800 and 1,000 million euros, a cost range of 300 to 500 million euros could still sustain operations. The mass layoff announcement occurs six months after the last interim arrangement expired, as the company seeks to finalize the entry of one or more investors to strengthen the ownership and capital base. A tighter cash position could make the group more attractive to potential investors.
The negotiations are expected to be conducted within fifteen days at a table that will include representatives of CC OO and CSI for the parent company, which employs 296 people in Asturias; representatives of UGT and CSI for DFOM (182 employees), DF Mompresa (122), and Felguera IHI (7). The latter two subsidiaries do not have works councils, so they must either elect their own representatives, delegate to the unions, or authorize their representation to the parent company and DF Mompresa committees.
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Carlos Elías Barros, head of CC OO on the parent company works council, noted that the group has endured years of mismanagement, a lack of workload and new projects, and that while many executives are hired, the workforce is said to be too large in some areas. He added that staff have left some departments and today the distribution of roles appears imbalanced, with certain positions left vacant. The sentiment reflected concern about the current staffing mix and the need for clarity on future planning.
Juan Antonio Alfaro, chairman of the DFOM committee, expressed surprise, stating that this subsidiary is performing work and that the ERE does not seem to involve them. Sources in Asturias indicated that the least favored option for securing the company’s future would be employment arrangements tied to layoffs. The preferred routes highlighted included increasing orders, pursuing new business lines, or attracting an industrial-grade reference shareholder. Yet the Asturian Government has shown a commitment to supporting the company’s survival. Separately, the Australian group Elementos Ltd. recently signed a contract with Duro to operate the tin processing plant in Oropesa (Andalusia) for its subsidiary Minas de Estaño de España (MESPA). This development is part of a broader effort to stabilize the group’s position and sustain essential operations while transformation activities continue.