Siro closes Venta de Baños biscuit plant, leaving 200 jobs at risk

Siro closes Venta de Baños biscuit plant, leaving 200 jobs at risk

On November 22, 2022, a working group was established with a specific mandate: sell the VB1 biscuit plant in Venta de Baños, Palencia. A sales memorandum was prepared, consultant KPMG was hired, and buyers were sought in the market. After contacting more than 60 potential investors, Cerealto Siro Foods has announced the closure of the facility. Two hundred jobs. For some participants in the debate, it felt like a compliance formality rather than a genuine search for a buyer.

What peine and how many workers are affected

The multinational agri-food group announced the closure of the Venta de Baños biscuit plant, which employs 200 people. This is not an isolated factory: alongside the biscuit plant, the company maintains three employment centers in the same town and two other factories in Aguilar de Campoo and Toro (Zamora), a network totaling nearly 1,900 jobs.

The company states that it guarantees the conditions agreed upon in the Competitiveness Plan and is now studying transferring volumes from the biscuit plant to other factories in Castilla y León, with reassignment and relocation options on the table. The company summarizes this as: the entire team is focused on "ensuring the competitiveness and stability" of the business in Spain. In short: production would be distributed among other plants, and the workforce remains pending reassignment or transfer.

Why did no buyer emerge?

The process formally began on November 22, 2022, when the working group was established to fulfill the commitment to sell and maintain activity. Cerealto hired KPMG for its experience in the agri-food sector; the Ministry of Industry, Commerce and Tourism involved Invest in Spain, and the Regional Department of Economy and Finance involved the Institute for Business Competitiveness of Castilla y León.

The search figures are stark: more than 60 potential investors contacted, including candidates provided by ICEX. In April, the only parties who had reached the end of the process declined. "The door to a possible purchase is closed," the group admitted, exhausting the available timeframe.

Regional Minister of Economy and Finance, Carlos Fernández Carriedo, previously defended the "high consensus" of the group and stated that institutions knew of projects interested in investing in the area. The head of the works council, Mari Mar Rodríguez, pointed in another direction: "Transparency and more time were requested to speak with companies." The May 24 meeting with institutions and the committee yielded no results.

The group invests while closing plants

The group's timeline helps understand the context. On June 13, 2022, all parties signed the Competitiveness Plan, with funds Afendis and Davidson Kempner entering as new owners. Shortly after, on July 1, Cem Karaka was appointed executive president, and on November 28, a roadmap was presented with investments of more than €40 million under the 2023-2025 Strategic Plan.

Then came the Energy Efficiency Plan with more than 12,000 solar panels, the appointment of Bosco Fonts as CEO replacing Rut Aranda, and an announcement of nearly five million in innovation investment with over 225 product launches. All this, while the plant being sold remained without a buyer.

Gullón, the family exception in the region

The comparison arises in industry conversations: Gullón is in the same area and doing well. It is a family business, with the factory part of its own history, and undergoing intense automation. Some recall it was cited as an example of a well-managed family firm, while others argue that even so, automation would have required staff adjustments.

The debate also repeats an idea: you can ask an investment fund for returns, but not roots. Some even suggest that Cerealto struggled with the acquisition of Fontaneda in the past, though this enters the realm of speculation.

The domino effect worrying Palencia

Siro and Renault are, in practice, the major industries in Palencia, and the closure does not stay within the factory fence. Added to the biscuit plant is the closure of a FASA auxiliary supplier, Marelli, and the previous loss of the Velilla thermal power station. Those who have worked in this chain know clearly: the serious issue is not just direct layoffs, but the chain of dismissals and closures dragging down suppliers. Then comes the explanation that people are moving to Madrid. It is not out of choice.

Expensive, high-calorie biscuits with less future

The other side of the conversation has little to do with balance sheets and much to do with the shopping basket. Biscuits have risen in price—some mention decent boxes costing five euros—and carry a hard-to-shake bad nutritional fruta: refined flours, sugar, and high caloric density. Forum calculations estimate around 400 kilocalories per 100 grams, and close to 500 if they contain cream or chocolate, although another participant lowers the figure for toasted María biscuits to between 350 and 370. Ten María biscuits do not reach 200 kilocalories; the whole packet does. For most participants, the problem is not the individual biscuit but the habit.

With these elements, the Spanish biscuit business faces a consumer who snacks less and checks labels more. And a shareholder who no longer manufactures biscuits: manages assets.

With the plant closed, the company is studying transferring volumes to other factories in Castilla y León, so that biscuit production from Venta de Baños does not disappear: it changes province.