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Brazil's Vicuna Textil announces closure of VSF unit
Aug '13
Vicuna Textil has announced the shutdown of its viscose staple fibre (VSF) unit located in American Metropolitan Region of Campinas in Sao Paulo state of Brazil.
The company has communicated the decision to about 300 workers who are likely to lose their jobs, gradually over a period of one year.
The Vicuna unit in Campinas is the only textile mill still producing viscose yarn in Brazil, as several companies producing viscose fibre and yarn have already closed down.
The import of low-priced viscose from China is the main reason behind the closure of these mills, which failed to withstand the competition. According to data, Brazil’s viscose yarn imports have doubled since 2008.
Vicuna would, however, keep its cotton linter pulp division running at its Campinas plant.
The closure of Vicuna’s VSF unit could make viscose more expensive, as importers may increase their profit margin, according to the Union of Textile Industries of Rio Grande do Sul.
The VSF unit operated since 1949 and was acquired by Vicuna group in 1982.

Fibre2fashion News Desk - India

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