Promecel invests €2.5 million in factory
Promecel, which operates in the electrical and mechanical component sectors, is to build a new factory in Braga by the end of the year in an investment worth €2.5 million.
Founded in May 1985, Promecel, a private capital company operating in the metal mechanics industry, has four Portuguese partners. It will invest in a new factory in Braga which will be completed by the end of the year with the company beginning to move in November. The new factory is just 300 metres from the old one according to its managing partner José Manuel Silva.
The existing premises are already sold. The company acquired a 22 hectare plot of land at the end of 2018 and the new factory will have almost double the area in terms of space than the existing one.
“We have to make the move this year. With the moving process beginning in November and given that the company has a lot of equipment “it won’t be at all easy” since we’ll be making the transition at the same time as delivering material to clients,” said José Manuel Silva.
“There is equipment that won’t be changed and there will be new equipment to install in the new factory. For example, we got new equipment that we’ve just bought and we don’t know how to set it up without the help of the manufacturer since we don’t have specialised technicians,” he said.
The company expects to have recovered its total investment in the new factory by 2026/2027 and did not borrow money in order to build it.
Promecel was originally focused on electrical products, normally of low to medium voltage. The company began its internationalisation strategy in 1992 and currently has a “clear strategy of focusing on high demand technical materials for overseas markets”.
It has the latest technology in terms of production and control and employs 94 workers with a high level of specialisation.
Its products include machining, foundry, stamping and electro plating.
The company expects to achieve a turnover of between €7 million to € 7.2 million years this year after a 26% fall in 2020 because of the Covid-19 pandemic. The turnover in its business plan is expected to be approximately €8.5 million.