Transforming the Algarve: New Factory to Create 400 Jobs and Boost Modular Construction

New Factory Opening in Loulé

Transfor is set to inaugurate a new factory in Loulé, Algarve, which is expected to create up to 400 jobs. The investment of €14.5 million coincides with an additional €12 million for the expansion of their existing facility in Fátima. This development comes at a time when modular construction is gaining traction in the market, offering increased export potential.

Job Creation and Economic Impact

The new facility, located in the former Loulé brewery, will support the group's activities in southern Portugal and is scheduled to start operations later this year after renovation works. Initially, 150 jobs will be created, with expectations for further increases in the coming years, as highlighted by CEO Tiago Marto and António Saraiva, former leader of the CIP.

Addressing Labor Shortages

Marto described the current situation in the construction sector as a "perfect storm", emphasizing the significant shortage of labor while demand for sustainable building solutions rises. Transfor specializes in off-site construction, where components are manufactured and transported to sites, helping to reduce waste and control costs and timelines.

Emphasis on Efficiency and Innovation

This method allows for cleaner and more efficient construction, less affected by weather conditions compared to traditional methods. Marto noted a shift towards a more robotized and digital production approach, with a workforce increasingly composed of qualified individuals, including a growing number of women. Approximately half of Transfor’s 300 employees hold higher education degrees.

Future Growth and Specialization

In the next decade, the group aims to focus on four key construction areas: hospitality and tourism, industry and logistics, services and offices, and residential projects. They currently have ten hotels under development, positioning themselves as one of the leading groups in this sector.

Expansion Plans and Internationalization

Transfor also has plans for international expansion, prioritizing European markets while targeting more distant markets such as the USA, Canada, and the UAE. Marto stated that while they are growing organically, collaborating with other firms could accelerate their international goals.

Sector Consolidation Needs

When asked about potential consolidation opportunities, Marto did not rule out the possibility of merging with other companies or attracting institutional investors. He stressed that consolidation is essential for the construction sector's strength and competitiveness, especially in major national projects like high-speed rail and new airports.

Financial Performance

Saraiva highlighted that Transfor has seen a 50% revenue growth over the past four years and maintains a net debt equivalent to a year of operational results. The company operates across four business areas: Construction, Interiors, Industry, and Sustainability, each with dedicated growth strategies.