Although market problems were cited as a reason for closing 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 double the amount provided for by law as compensation.

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

“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 with regard to 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 city government 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 revenue levels”.

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

Corticeira Amorim announced that it will transfer, as of 9 June, 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 that the company's decision to close the unit was not expected, but "is in favour" of residents, as it will end the "environmental discomfort caused by the fumes and noise" resulting from its operations.

“Although we had never asked for the factory to close, we received the news with pleasure, because it is a decision that is in our favour,” he stressed.

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