Argentina’s Footwear Industry Faces Challenges: 360 Layoffs Due to Manufacturing Plant Shutdown
As Argentina’s economy grapples with hurdles like high prices and complex currency exchange rates, the repercussions are beginning to show in the local industry. A recent blow came with the closure of Grupo Dass’s sports footwear manufacturing plant in Coronel Suarez, Buenos Aires, resulting in the loss of 360 jobs. This plant was responsible for producing shoes for renowned brands like Adidas, Nike, and Fila.
The Brazilian Grupo Dass, reflecting on the shifting economic landscape in Argentina, decided to relocate its production to the Eldorado plant in Misiones province. This move is part of the company’s larger restructuring plan to align with new market dynamics and changing commercial conditions within the country.
Key Points:
- Restructuring in response to shifting market conditions: Grupo Dass’s decision to close the Coronel Suarez plant and consolidate production in Eldorado comes in the wake of altered demand patterns and strategic shifts by the brands it partners with.
- Layoffs and the human cost: The shutdown of the Coronel Suarez facility translates to significant job losses, affecting around 360 employees.
In a statement, the company emphasized the need to adapt operations to improve competitiveness and efficiency in the face of evolving market demands. Grupo Dass, with a longstanding presence in Argentina since 2008 and substantial investments in the country, highlighted the necessity to recalibrate its industrial footprint to stay viable in the changing economic landscape.
The Misiones plant, now at the forefront of production for brands like Asic, Fila, Umbro, and Nike, will carry forward Grupo Dass’s manufacturing legacy in Argentina. Meanwhile, the Coronel Suarez facility, formerly under Gatic’s ownership, focused on Adidas production. Notably, Dass’s 2024 production figures stood at an impressive 7.8 million pairs.
As stakeholders in Argentina’s footwear industry navigate these challenging times, the Grupo Dass plant shutdown serves as a stark reminder of the resilience and adaptability required to survive in a dynamic economic environment. It underscores the importance of strategic foresight, operational agility, and workforce support in sustaining businesses through fluctuating market conditions. Moving forward, holistic approaches that balance commercial viability with social responsibility will be crucial in fostering industry longevity and protecting livelihoods.
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