LUSA 05/10/2025

Lusa - Business News - Portugal: Unexpected closure of cork factory a win for local residents

Silves, Portugal, May 9, 2025 (Lusa) - The spokesperson for residents living near the Amorim Group's cork factory in Silves, Algarve, said on Friday that the company's decision to close the factory was not unexpected, but "works in favour" of residents.

Speaking to the Lusa news agency, the spokesperson for the Vizinhos da Fábrica (Neighbours of the Factory) civic movement, Nuno Neves, said that residents "were pleased to hear that the environmental discomfort caused by the smoke and noise" from the factory would come to an end.

"Although we never asked for the factory to be closed, we welcome the news because it is a decision that works in our favour," he said.

Corticeira Amorim announced on Wednesday that it will transfer its expanded cork production unit located in Silves to Vendas Novas from 9 June to ensure greater competitiveness for the business.

Local residents have been complaining about the smoke and noise from the factory, which produces cork insulation agglomerates and is located in Vale da Lama, Silves, in the district of Faro, for several years.

In a statement sent to the Portuguese Securities Market Commission (CMVM), the business group said that the decision was taken "after an assessment of the existing production capacities at various Amorim Cork Solutions industrial units".

A source at Corticeira Amorim told Lusa that it will propose "the possibility of transferring the 31 employees currently in Silves to Vendas Novas".

However, it acknowledged that "this solution may not be viable for everyone", and therefore "is available to negotiate fair compensation terms with employees" who choose not to do so.

This transfer is part of the "significant investments in new technologies" that Corticeira Amorim says it is making "to relaunch the expanded cork business", which was integrated into the new Amorim Cork Solutions business unit at the beginning of this year.

According to the civic movement spokesperson, the Amorim Group "did well to make it clear" that the factory closure had nothing to do with the residents' demands, “so as not to cause social alarm among the workers.”

"We ended up taking advantage of a private matter concerning the company, which has to do only with its operational management," he concluded.

The municipality of Silves has been mediating between the cork company, residents, the Algarve Regional Coordination and Development Commission (CCDR) and the Pestana hotel group, which has a golf course in the area that is also affected by the smoke.

JPC/ADB // ADB.

Lusa