Tunisian Cable Giant COFICAB to Invest €17 Million in Third Portuguese Plant
Guarda, Portugal – Tunisian industrial group COFICAB has announced plans to invest €17 million in a third manufacturing facility in Guarda, Portugal. The investment marks a strategic pivot for the company, which aims to diversify its business beyond its traditional core of automotive wiring by developing solutions for data centers, robotics, renewable energy, and industrial automation.
According to the Portuguese Automotive Industry Association (Afia), COFICAB, historically specialized in automotive cables, is seeking to broaden its market reach beyond the automotive sector.
Strategic Focus: Copper Transformation and Diversification
The €17 million investment will fund a new unit dedicated to the integrated transformation of copper, a critical raw material for cable manufacturing. This expansion is designed to strengthen the industrial capabilities of COFICAB Portugal. According to reports from the Portuguese press, the new plant is expected to become operational by 2028.
This move aligns with COFICAB’s broader strategy to leverage its expertise in cabling and connectivity for new sectors. While the electrification of vehicles and the proliferation of electronic systems have already increased demand for technical solutions in the automotive industry, the company now intends to apply this experience to digital infrastructure and industrial equipment.
Navigating Automotive Sector Challenges
This diversification strategy comes at a time when the automotive sector is facing increasing pressure on prices and margins. Teresa Forte, Director of COFICAB Portugal, highlighted the challenges posed by rising technical requirements and the need to maintain competitive costs.
"Diversification offers a pathway to expand the company’s activities, although it requires developing products tailored to the specific needs of new clients," Forte noted.
The subsidiary must also navigate significant shifts in the European automotive supply chain. Some wiring harness manufacturers have relocated parts of their production to other countries, potentially increasing logistical constraints for suppliers based in Portugal. Additionally, the sector faces headwinds from competition with Chinese manufacturers and a slowdown in European automotive production.
Strong Financial Outlook
Despite these industry-wide challenges, COFICAB Portugal projects robust financial growth:
- Revenue: Expected to reach €547 million in 2026, up from €435 million in 2025, representing a 26% increase.
- Production: Anticipated to hit 2.16 million kilometers of cables, a 17% rise year-over-year.
- Exports: In 2025, exports totaled €407 million across 34 countries. Exports are projected to continue accounting for approximately 95% of total revenue in 2026.
A Decade of Growth in Portugal
COFICAB has been established in Guarda since 1993. The subsidiary currently operates two existing plants in Vale de Estrela and Casal de Cinza, along with a dedicated Research and Development (R&D) center. With a workforce of over 1,000 employees, the facility allows the group to combine production and technological development within the European market.
Founded in 1992 by the Tunisian Elloumi Group, COFICAB has grown internationally from its roots in automotive cabling. The new €17 million project in Portugal serves two concrete objectives: increasing copper transformation capacity and positioning the company to serve emerging industrial markets.
