Stagnation of the construction market in Angola and Portugal leads to redundancies

6 January 2016

The stagnation of the construction market in Angola and in Portugal is the basis of collective dismissal of 500 workers at construction company Soares da Costa, according to a document signed by the CEO of the company.

In this document, cited by Portuguese news agency Lusa, Joaquim Tapes noted the “negative impact” on the company of the crisis and the “stagnation of the construction market” in Portugal and Angola, its main market, a situation that makes “downsizing and restructuring of the company inevitable.”

“This collective redundancy is necessary for the company to retain more than 80 percent of its jobs,” said the chief executive of Soares da Costa, a company that posted annual losses in excess of 60 million euros and saw turnover fall by 30 percent.

Soares da Costa is 66.7-percent owned by GAM Holdings, owned by Angolan entrepreneur António Mosquito, which took a stake in the construction company at the end of 2013 through a capital increase costing 70 million euros in cash and the remaining 33.3 percent of the group is owned by SDC – Investimentos (formerly Grupo Soares da Costa). (macauhub/AO/PT)