Translated by
Emily Jensen
Published
Jul 13, 2017
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Argentine textile crisis shutters VF Corp factory

Translated by
Emily Jensen
Published
Jul 13, 2017

As a result of poor sales, US VF Corporation, owner of brands such as Lee, Wrangler and Timberland, decided to close its textile plant located in the Argentine province of La Rioja. The plant employs a workforce of 105 people, Nicolás Farias, representative for the factory’s workers union, told the local paper Ancasti, . 


The American company VF closes one of its textile factories in Argentina - Iprofesional



According to Farias, “the company wishes to shut it down as it plans to leave Argentina due to a lack of sales. They said they will keep two warehouses full of merchandise until 2018.” With operations to cease at the La Rioja plant, the company’s Argentine subsidiary will be pared down to one working factory located in Buenos Aires province. 

The closure of VF in Argentina is part of a larger crisis facing the Argentine textile industry, which has forced various factories to close or take drastic measures to remain afloat in recent years. Companies have attempted suspensions, temporary closures, personnel cuts, and pauses to productions to preserve their business.

Among those who have attempted such measures is the manufacturing plant Mafissa, which laid off 240 employees. TN&Platex, the leading textile company in Argentina, has temporary closed production in its production centers in the Tucumán and La Rioja provinces, in addition to laying off 720 workers. 

In March of this year, Herzo, the company which manufactures Puma in Argentina, announced it would cease operations entirely. 

According to Fundación Pro-Tejer, a non-profit whose goal is to advance the local textile industry, the provinces of Buenos Aires, Tucumán, La Rioja, Santa Fe and Catamarca have already seen a total of more than 8,000 layoffs.

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