Following the acquisition of its long-term supplier S&CC Portugal in 2022, BIRKENSTOCK announces significant expansion plans for its production facilities in Arouca, Portugal. The company is investing 15 million euros in the construction of a new factory, marking a pivotal moment in its commitment to bolstering its global manufacturing capabilities.
Located in the city of Arouca, Portugal, BIRKENSTOCK's operations represent its sole production site outside of Germany, where the company boasts six factories and logistics centers. With the acquisition of the shoe factory S&CC Portugal in 2022, a longstanding partner of the iconic footwear brand, the Arouca operations seamlessly integrated into BIRKENSTOCK's supply chain ecosystem.
The construction of the new factory, adjacent to the existing facility in the São Domingos Industrial Zone, underscores BIRKENSTOCK's dedication to modernizing and expanding its production infrastructure. Spanning an impressive 10,000 square meters, the new factory will epitomize modernity and efficiency. Upon completion, it is anticipated to employ over 600 individuals, contributing to the local economy and fostering employment opportunities within the community.
As part of the expansion initiative, the original factory will undergo closure and subsequent demolition. The approximately 290 employees - a number which has already tripled since the acquisition - will be transitioning to the new facility. BIRKENSTOCK remains steadfast in its commitment to enhancing operational efficiency and optimizing production processes to meet evolving market demands.
The company's investment in the Arouca factory aligns with its overarching strategy to augment production capacity in response to escalating global demand for BIRKENSTOCK products. Notably, this expansion follows the recent completion of a new factory in Pasewalk, Germany, in September 2023. Moreover, significant investments are earmarked for the modernization and expansion of existing facilities in Germany.
The culmination of construction works is anticipated by December 2024.
