Algarve region's cork production is being relocated
Amorim Cork Solutions announces the relocation of its expanded cork production unit from Silves to Venda Novas, commencing on June 9. The decision stems from a comprehensive evaluation of the company's production capacities, focusing on operational efficiency and market conditions.
The transfer aims to foster greater competitiveness, with the benefits including closer proximity to cork oak forests, the concentration of investments for technological advancements, and improved access to raw materials. By combining operations in Venda Novas, the company intends to realize synergies in industrial, commercial, and support domains.
The move complements Amorim Cork Solutions' strategy to reinvest in new technologies and relaunch its expanded cork business, which was integrated into the new business unit earlier this year. The unit encompasses the company's flooring and insulation activities.
The Venda Novas facility already produces insulation products, making it a strategic choice for Amorim Cork Solutions. Local residents stand to benefit from the closure of the Silves plant, which had faced persistent environmental complaints regarding noise and fumes.
In Q1 2025, Corticeira Amorim, the parent company, reported a 2.1% increase in profit and a 2.2% decline in sales compared to the previous year. Excluding the impact of the sale of Timberman Denmark's stake, sales would have risen by 1.3%.
The transition comes against the backdrop of decreasing new orders and reduced revenue for the Silves factory despite previous investments. Amorim Cork Solutions believes the reorganization will bolster its expanded cork business segment's operational efficiency and overall competitiveness.
The reorganization of Amorim Cork Solutions' expanded cork business involves a transition from the Silves plant to the Venda Novas facility, expected to occur on June 9. This shift aims to enhance the company's competitiveness in the manufacturing industry, securing closer proximity to cork oak forests and access to raw materials. Amidst the financial landscape, Amorim Cork Solutions is strategically reinvesting in new technologies for growth, with a focus on the business segments of flooring and insulation activities.
