Siemens factory in Sintra, Portugal started a restructuring programme that could lead to its closure in 2014.
According to the Económico, the factory will stop manufacturing power transformers supplied to companies such as Galp, EDP and REN due to overproduction in relation to demand.
"The production of electrical transformers at the factory was mainly for domestic market and export to some countries in southern Europe," said a Siemens official to the Económico source. "We are focusing on coming up with the best solution, whilst intending to keep the largest possible number of people with engineering skills in this factory," the official added.
The Sabugo factory was established in 1959 and employs around 200 people who will reportedly be sent to Siemens’ franchises in other countries such as Italy, Germany and Austria.
Siemens pointed out that this is only a "period of uncertainty" and for now it is not possible to predict the outcome of the restructuring. Siemens in Portugal closed 2012 with € 340.9 million sales and € 6.6 million profit.
In September, Siemens announced plans to cut nearly 15,000 jobs worldwide next year with 5,000 of those in Germany. The redundancies were presented as part of a comprehensive programme that will allow savings of about € 6 billion by the end of 2014.