Home / Knowledge / News / Textiles / Costa Rican textile company likely to shut down
Costa Rican textile company likely to shut down
13
Sep '14
Cartex manufacturing, a subsidiary textile company of American Hanesbrand Inc in Costa Rica, will possibly shut down by the end of this year and will lay off about 1,250 employees, Prensa Latina reported.

The textile company, which has produced men’s innerwear for export around the globe from Costa Rica for the last 40 years, will close its factories and is likely to shift its base to Vietnam, where the firm already has a manufacturing unit.

The director of operations, Mauricio Brenes said the reason behind shifting the company to Vietnam was to optimize the production flow to China, near to Vietnam, as most of the fabric suppliers are located in China. This will also help reduce the costs in production, he said.

With the company shutting down its operations, the workers in the HanesBrands Inc administrative offices will also be unemployed. The employees are likely to receive a severance pay with a notice period of one month.

According to the president of the Costa Rican Textile Chamber, Rodolfo Molina, in the last ten years, many textile companies have shifted base from Costa Rica, because of the expensive labor and high production costs, leaving about 12,000 workers unemployed and there are only 60 companies now that employ about 8,000 people.

Costa Rica has become an expensive country to produce, relative to other nations in Asia or Nicaragua, he added.

Cartex was operating in three Central American countries and employing nearly 60,000 people in 35 nations in the world. Costa Rica is the second largest country in Latin America with unemployed people. (GK)

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search