Portugal’s Socialist Party (PS) and Portuguese Communist Party (PCP) have raised concerns over the planned closure of Ecco’s footwear factory in Santa Maria da Feira, warning of economic losses and hardship for workers and their families. The shutdown is expected to affect 632 employees.

The Danish multinational announced on Monday that the factory would close permanently. The site, in the Aveiro district, had been operating since 1984. Ecco told the Lusa news agency that the decision formed part of a broader restructuring of its global production organisation. The company also plans to close its factory in Vietnam, and the restructuring could cut around 400 jobs in regional and global roles, including in Denmark.

The PS said it had questioned the Ministry of Economy about the reasons for the decision and what measures the government would take to reduce its economic, industrial and social effects. The party described the factory as important to Portugal’s footwear industry, exports and employment in Santa Maria da Feira, and called for alternatives to preserve production and jobs.

Socialist lawmakers also asked whether public funding from Portugal or the European Union had been given to Ecco or companies in its group. They want the government to assess options for avoiding the closure, including the possibility of attracting new investors or transferring operations to another company.

The PCP said Ecco had been one of Portugal’s largest footwear producers during its four decades in the country. Its lawmakers have questioned the Ministry of Labour and Social Security about whether the government will take steps to keep the factory running and protect jobs, warning that the closure could leave families in a vulnerable position.

Production at Ecco Portugal had already been suspended before the company informed workers across its 22 departments on Monday. The factory’s management called the decision particularly difficult because of its impact on employees, their families and the local community. Portugal’s general manager, Gustavo Kremer, said workers had made a significant contribution to the brand’s development and success, adding that the closure did not reflect the quality of their work.

The footwear sector’s union expects the closure to be completed by the end of the first quarter of 2027.

Sources: Observador.