Spanish denim mill Tejidos Royo is taking steps to mitigate effects from the adverse economic environment. The family-owned Valencian textile company is relocating two of its factories in Picassent to Alcudia de Crespins, where it was founded in 1903.
The strategic plan includes a significant investment in upgrading the company’s industrial infrastructure. Tejidos Royo is investing 13 million euros to renovate and build new industrial facilities for weaving, dyeing and finishing. The facilities will sit alongside the company’s historic spinning plant.
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Transparently, José Royo, president of Tejidos Royo, said the move to centralize its production is part of a cost-cutting plan to keep the 122-year-old company alive. The denim market never fully recovered from the pandemic. Additionally, Royo said “profound change” in consumer behavior and the financial landscape has made it challenging to maintain continuity and competitiveness.
“We are going to leave behind a 20th century business structure to become a more flexible and efficient company,” he said.
In this new phase, Royo will focus on optimizing costs, making assets profitable and revitalizing its business model through innovation, sustainability and diversification into new markets, such as technical fabrics.
“We offer a level of quality that some sectors no longer value, so we will focus on those that do. We believe that we still have a lot to offer and that is what we will fight for,” Royo said.
The relocation impacts over 140 employees, many of whom have voiced strong opposition to the move, according to Spanish fashion publication Modaes. Employees are particularly frustrated by the prospect of having to commute 34 miles to the new site in Alcudia de Crespins, which they say will significantly disrupt their daily routines. The Comisiones Obreras (CCOO) union criticized Tejidos Royo, accusing the company of turning its back on its workforce and “prioritizing cost savings over work-life balance,” the publication reports.
The union called for a two-day strike. However, Tejidos Royo said it was called off after an agreement was reached with the Works Committee last Monday. The Dry Indigo innovator added that its management “values positively the understanding reached with the workers’ representatives, highlighting the shared commitment to finding solutions.”
“We are aware that many of our employees believe in this project and have expressed their support. Change brings uncertainty, but we have tried to respond to the concerns raised by the Committee, without losing sight of the economic reality we are facing. Everyone is making great efforts to move this forward,” Royo said. “Our human team has always been the key to Tejidos Royo’s success.”
