Jobs at Risk in Madeira and the Azores
The tobacco factory of Empresa Madeirense de Tabacos (EMT), located in Caniçal, Madeira, may close by the end of 2025. The decision comes after the national group Tabaqueira announced it will end its production agreement with EMT, which allowed the company to manufacture Philip Morris products.
A study by ISCTE published at the end of 2023 and funded by Tabaqueira estimates that Empresa de Tabacos da Madeira directly and indirectly affects around 2,000 people in the two autonomous regions. This figure includes employees, their families, and workers from other companies that provide services to EMT. According to the study, the percentage of the active population impacted by the tobacco sector reaches 1.92% in the Autonomous Region of Madeira and 1.14% in the Azores.
A second factory, operated by EMT in Ponta Delgada in the Azores, is also affected. Together, the two facilities employ around 225 workers, with many of those workers (sources state between 50-100 and 161 employees) being employed in Madeira.
Tabaqueira confirms the expiration of the current manufacturing license agreement on January 31, 2025, and the decision not to enter into a new manufacturing agreement with Empresa Madeirense de Tabacos, S.A. (EMT) from 2026 onwards.
Production to Be Moved to Mainland Portugal
According to a report published today, Tabaqueira confirmed that the current license agreement will end on January 31, 2025. The company also said it will not renew or sign a new contract with EMT starting in 2026. Instead, all tobacco production will move to Tabaqueira’s main plant in Sintra, near Lisbon.
Business No Longer Financially Viable
An official spokesperson from Tabaqueira told Diário de Notícias that the decision was made after a “careful review” of the business and legal environment. In an internal message quoted by the newspaper, the group’s leadership acknowledged the consequences of this move for EMT. However, they concluded that continuing the partnership with the Madeira-based firm no longer made financial sense.
Uncertain Future for Workers and Local Economy
The closures would deal a significant blow to the local economy, where stable jobs in manufacturing are limited. While no official plans have been shared to support the workers who may lose their jobs, local authorities and unions are expected to respond soon.
This development also raises questions about the long-term role of regional factories in global supply chains, especially when major companies choose to centralize production in larger, more cost-effective facilities.
Source: Diário de Notícias
Care for a share?
Comments