Ecco and Lowa to close factories in Slovakia

This summer, the German outdoor footwear brand Lowa and the Danish footwear brand Ecco are set to close their factories in Slovakia. This is a cause for concern for the country’s footwear industry
By July and August, Ecco will close its production facility in the northern Slovakian town of Martin, which has attracted direct investments from Western Europe since 1998, symbolizing the country’s transition from a centralised economy under communism.
This decision forms part of the company’s strategy to reorganise its global production amid a general decline in demand. As one of six production sites in Ecco’s global network, the factory has produced over 50 million pairs of shoes for international markets.
Around 650 employees will be affected by the closure, though this will not impact Ecco’s retail business in Slovakia.
The German footwear brand Lowa is also set to discontinue production at its Handlová plant on the 31st of August. This move is part of a review of its industrial structure aimed at increasing efficiency. The number of employees affected has not been disclosed, but Tecnica Group, Lowa’s parent company, has stated that it is working closely with its partners to provide support for those affected, including relocation opportunities.
The simultaneous closure of two international factories has raised concerns about Slovakia’s suitability as an industrial location. High energy prices and declining demand in key markets have hindered the country’s footwear production in recent years. According to the 2024 World Footwear Yearbook (more information available HERE), exports of Slovakian footwear, primarily destined for Germany, declined in 2023.
Sources: shoeintelligence.com and shoez.biz
Image Credits: windeurope.org