Schmidt Light Metal to close factory, laying off 318 workers

Schmidt Light Metal, an aluminum component manufacturer for the automotive industry, is closing its operations in Oliveira de Azeméis, resulting in the layoff of 318 workers. Production ceased on September 30, and the total shutdown is expected to be completed by the end of December.

The company, which was founded in 1989, had previously faced insolvency. In March, the management team—including Marc Schmidt, Carlos Pais, and Daniela Alegria—acquired the company for 8.5 million euros in an attempt to preserve jobs and ensure industrial continuity. However, a decline in orders from the Volkswagen Group compromised these recovery efforts.

Most employment contracts are set to end on December 7. Until then, employees are serving their notice periods from home while continuing to receive remuneration.