EMCC European Monitoring Centre on Change

Martinez Valero

Company/Organisation:
Martinez Valero

Geographic Location

Country: Spain
Region: Alicante / Alacant; Comunidad Valenciana; Este
Location of affected unit(s): Altabix-Elche-Alicante

Company

Sector: Manufacturing
Manufacture of textiles, apparel, leather and related products
15 - Manufacture of leather and related products
Number Employed: 147

Employment Effects

Announcement Date: 04-05-2004
Planned Job Reductions min: 147
Planned Job Reductions max: 147
Type of Restructuring: Bankruptcy/Closure
Employment Effect Start: 04-05-2004
Foreseen End Date: 04-05-2004
Direct Dismissals: 147

Additional Information

The Company Martinez Valero has announced the closure of its plant specialised in the manufacture of footwear in Elche. The Company had losses amounting to 5 million euros. All 147 employees in the Elche plant are to be made redundant. The formal reasons for its closure were loss of market share in foreign markets (like the US, which represented 30% of its exports), and a lack of competitiveness due to a strong euro. Other reasons are that the manufacture of footwear requires heavy fixed costs in labour where the consumption of footwear normally follows a seasonal trend.