Arcos de Valdevez, Portugal, Nov. 28, 2024 (Lusa) - The Coindu group has fully repaid the €3.9 million support it received in 2022 from the Portuguese Recovery and Resilience Plan (RRP), which was aimed at economic recovery after the COVID-19 pandemic.
"In 2022, Coindu benefited from a government convertible loan of €3.9 million under the PRR, which aimed to support the post-covid economic recovery. However, despite this intervention - which was fully repaid ahead of schedule in October 2024 - the company has seen a gradual deterioration in its financial conditions as a result of market conditions," according to a statement published on Tuesday on its official website, consulted today by the Lusa news agency.
On Monday, the Metallurgical and Related Industries Union (SIMA) told Lusa about the closure of the Arcos de Valdevez factory and the dismissal of 350 workers.
SIMA said the decision came about a month after the Italian group Mastrotto bought the company.
‘This process was carried out without any information or consultation with the workers, in complete illegality and without any action by the competent authorities," SIMA emphasised.
At the time, Lusa contacted Coindu"s management but never received a reply.
In the statement he published on the Internet, the group"s CEO, António Cândido, ‘announces the cessation of operations at its Arcos de Valdevez factory by the end of this year".
‘This decision follows an in-depth assessment of market conditions and business opportunities, which made it unsustainable to continue operating this unit. In recent years, the automotive sector has been undergoing a growing and profound transformation, marked by a significant decline in post-pandemic demand and increased competitive pressure from markets with lower labour costs, our direct competitors," he said.
According to the group, ‘this situation has led to a gradual reduction in the projects assigned to our unit in Arcos de Valdevez," which specialises in the design and production of car interior components.
‘Despite intense and prolonged efforts, it has unfortunately not been possible to say new business opportunities to keep this plant active," adds António Cândido, stressing that "the entry of Gruppo Mastrotto is strategically aimed at stabilising the situation, increasing Coindu"s competitiveness and opening up new international opportunities."
He said that ‘the main Portuguese factory, in Joane, Vila Nova de Famalicão, will continue its operations, focusing on the premium segments of the automotive market, where the Coindu group"s technological innovation centre and headquarters are located".
‘This decision, although difficult, reflects an objective need to say the company"s sustainability. We fully recognise the human and social impact that this entails," he said, adding that for this reason, the group, in collaboration with the Arcos de Valdevez City Council, is “developing a support programme to help employees find new job opportunities” and is committed to “maintaining an open and transparent dialogue with all employees, trade unions, institutions and the community of Arcos de Valdevez”.
On 15 October, Gruppo Mastrotto, founded in 1958 in Italy, announced in a statement the acquisition of ‘a majority stake in Coindu - Componentes Para A Indústria Automóvel, SA. through a capital contribution to support the relaunch of the business".
‘This transaction makes Coindu part of a leading group in the leather industry, consolidating its financial and operational stability. For Gruppo Mastrotto, this operation aims to advance vertical integration, increasing the company"s ability to offer end-to-end solutions for car interiors and strengthening its competitive position in the global market," the note read.
Gruppo Mastrotto added that, like Coindu, it was ‘committed to expanding its presence in luxury market segments".
In Portugal, Coindu, founded in 1988, has factories in Arcos de Valdevez and Joane, Vila Nova de Famalicão, in the Braga district.
ABC/ADB // ADB.
Lusa
