Factory Shutdown Leaves Silves Worried About Job Losses
Cork production unit in Silves to be moved to Vendas Novas by Corticeira Amorim
In a statement, an executive expressed concern over the 31 workers affected by the closure of the Silves unit, pledging to aid them in finding viable solutions for the future. The company, Corticeira Amorim, has agreed to transfer affected workers to the Vendas Novas unit and offer double the legal compensation in cases of termination of employment. The local authority has inquired about the workers' rights, while the Silves Council has guaranteed that functional homes will remain available for workers and families residing there.
The decision to close the unit was based on the continual decline in demand for cork insulation agglomerates, coupled with increased raw material costs and international taxation issues on national exports. Since the end of 2021, the city government has made concerted efforts to prevent this closure, leading at least 16 meetings in a long-term consultative process. Despite these efforts, the Silves factory unit faced an abrupt drop in new orders and a subsequent reduction in revenue levels.
Although unexpected, the factory closure was welcomed by neighbors, who had long been subjected to smoke and noise pollution from the operations. Nuno Neves, a spokesperson for residents near the facility, expressed satisfaction with the decision, as it would alleviate the "environmental discomfort" caused by the factory's operations.
Notably, Corticeira Amorim's decision to transfer the expanded cork production unit to Vendas Novas aims to improve operational efficiency and competitiveness. The move coincides with significant investments in new technologies, aiming to relaunch the expanded cork business.
References
[1] Corticeira Amorim. (n.d.). Retrieved from https://www.amorimcork.com/
[2] Silves Council. (n.d.). Retrieved from https://cm-silves.pt/
[3] Enrichment Data. (n.d.). Retrieved from [Retrieved from internal database]
[4] Data not available for public access.
[5] Local newspaper article (n.d.). Retrieved from [Retrieved from internal database]
The move of Corticeira Amorim's cork production unit from Silves to Vendas Novas could potentially bring an influx of business opportunities for the latter, given the company's investments in new technologies for the expanded cork industry. Portugal's news outlets have reported the Algarve region's manufacturing sector may face adjustments due to this shift, as some workers may need to relocate. Finance experts have commended Corticeira Amorim for offering double the legal compensation to affected workers, signaling a responsible approach amid industry changes.
