“After an assessment of the existing production capabilities in various industrial units of Amorim Cork Solutions, it was decided to transfer the industrial unit from Silves to the industrial unit in Venda Novas (which also produces insulation products) starting June 9,” stated a report sent today to the Commission of the Securities Market (CMVM).
The decision, it explains, was based solely on operational efficiency, considering exclusively market issues, installed capacity versus market size, and the location of the cork oak forest.
The aim is to allow “greater competitiveness” in the expanded cork business, benefiting from “closer proximity to the raw materials used and the concentration of the necessary investments to achieve greater productivity.”
Lusa news agency has requested additional clarification from Corticeira Amorim regarding this reorganization and is still awaiting a response.
This transfer occurs within the framework of the “significant investments in new technologies” that Corticeira Amorim claims to be making “to relaunch the expanded cork business,” which at the beginning of this year was integrated into the new business unit Amorim Cork Solutions.
This new business unit was created to incorporate the company’s flooring and insulation activities, concentrating the activities of Amorim Cork Flooring, Amorim Cork Composites, and Amorim Cork Insulation, to ensure “a more integrated management of operations and leverage industrial, commercial, and support synergies, strengthening the ‘non-stopper’ business.”
In today’s disclosed statement, the president and CEO of Corticeira Amorim declared that the creation of Amorim Cork Solutions “marks a new stage in the company’s history.”
António Rios de Amorim believes that the “significant improvement in the profitability of this business unit, already by the end of March, demonstrates the effects of more efficient operations management and asset optimization, besides the synergies resulting from sharing means and resources.”
Corticeira Amorim’s profit increased by 2.1%, to 16.4 million euros, in the first quarter compared to the same period of 2024, while sales fell by 2.2% to 229.4 million euros, announced the company today.
In a statement sent to the CMVM, the cork manufacturer noted that, excluding the effect of the change in the consolidation perimeter due to the sale of the participation in Timberman Denmark, sales would have increased by 1.3%.
