Another garment factory is shutting down in Tanapag

19 Dec '06

3 min read

POONG In (Saipan) Inc is closing its factory in Tanapag effective December 29, citing “global economic reasons and lack of garment production orders.” The garment factory's closure will affect the employment of approximately 200 workers.

Poong In (Saipan) Inc is the 11th garment factory on Saipan to shut down since January 2005 when the World Trade Organization liberalized trade rules that now allow Third World countries to export more of their cheap garment products to the U.S.

“I was shocked to learn that the company is closing that soon. We thought it would be in operation for at least two more years,” a 38-year-old employee of Poong In said in an interview yesterday.

Richard W. Pierce, attorney for Poong In (Saipan) Inc, said only the Tanapag factory will close, and not the San Antonio factory. “The San Antonio factory will remain open, and some employees from the Tanapag factory will be transferred there,” he said, adding that employees were properly notified well ahead of the closure date.

Hyung Chul Kim, general manager of Poong In (Saipan) Inc, informed the company's resident and nonresident employees through a written notice that Tanapag factory operations will be closing effective December 29, 2006 “due to global economic reasons and lack of garment production orders.”

The October 27 notice, a copy of which was posted at the Tanapag factory's main entrance, said that all nonresident workers will be provided with a one-way repatriation plane ticket back to their point of hire, and/or transfer relief for any on-island potential employment sanctioned by the CNMI Department of Labor's secretary or his designee.

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