Silves Municipality concerned about workers after cork factory closure

Although market problems were cited as the reason for the closure of the unit, in a statement the executive said he was “concerned” about the 31 workers and available to “provide them with all possible support in finding the best solutions” for the future.

The note also states that the local authority asked the company about workers' rights, with Corticeira Amorim having undertaken to accept the transfer to the Vendas Novas unit and, in cases of termination of employment, to grant compensation in double the amount provided for by law as compensation.

It was also guaranteed that the functional homes will remain available to workers and their families who live there, until “other and better solutions are found that satisfy all interested parties”, adds Silves City Council .

«The continuous decline in demand for cork insulation agglomerates, as they are more expensive […], combined with the increase in raw material costs […] and allied to international instability regarding the taxation of exports of national products led to the decision to close based solely and exclusively on a criterion of economic and market rationality», the note also states.

The local authority emphasizes that, since the end of 2021, it has made “important efforts to prevent this closure from ever occurring”, having led and mediated at least 16 meetings in a long participatory process.

«All this long work has meant that the Silves factory unit has been the one that has received the most attention and investment from the Amorim Group over the last four years […], creating a positive context that, unfortunately, ended up not being able to withstand the abrupt drop in new orders, with the consequent reduction in the factory's turnover levels», he adds.

The municipality also sends “a message of confidence and hope for tomorrow”, considering it extremely important to stress that “the strong connection between the city of Silves and the cork processing industry is far from over”.

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

The emission of smoke and noise from the factory, dedicated to the production of cork insulation agglomerates and located in Vale da Lama, in Silves, in the district of Faro, has been the subject of complaints from people living nearby for several years.

The spokesperson for residents near the factory, Nuno Neves, told Lusa today that the company's decision to close the unit was not expected, but "speaks in favor" of the residents, as it will put an end to the "environmental discomfort caused by the smoke and noise" resulting from its operations, as reported by Barlavento .

“Although we had never asked for the factory to close, we welcomed the news, because it is a decision that works in our favor,” he stressed.

According to the civic movement's spokesperson, the Amorim Group "did well to make it clear" that the end of the factory's operations had nothing to do with the residents' demands, "so that social alarm would not be created among the workers."

“We ended up taking advantage of a situation that was private to the company, which only had to do with its operational management,” he concluded.