Telecom equipment manufacturer Tegael announced the closure of the plant in Coruche which will result in the dismissal of 300 employees in 2012. In the last two months of 2011, the company already dismissed 100 employees: 70 through collective dismissals and 30 through individual processes. According to the Executive Board the closure is related to the crisis. The union was informed about the intention to close the plant, but it questions the arguments put forward by the executive board. Its closure raises great worries among the local authorities as Tegael is the main employer in the town.