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Nike is sizing down production in Argentina

Oct 17, 2019 Argentina
Nike is sizing down production in Argentina
According to reports by Argentina-based newspaper Pagina 12 the US-based sportswear giant is reducing its local production. Replacing the local capacity by imports might be on the pipeline
Nike produces in Argentina through its partner Dass, the Brazilian-based multinational. This production is mainly aimed at the local Argentinian market.

Local sources indicated that the company is letting go 400 of its current 640 workers employed in the unity in the city of Eldorado. Once this is confirmed, it will be the confirmation of recent years trend, as the company already reduced its workforce by more than 50% in the last 4 years (in 2015 total workers in the factory amounted to 1 400).

According to UTICRA, the trade union for the footwear industry, officially there was no communication about the end of operations or the closing of the factory. However, there was already a confirmation about the dismissal of 400 workers. The same source indicates that as the factory in Eldorado produces almost entirely for Nike, and as order from the American brand reduced significantly in recent times, it is very unlikely that the factory continues to operate in the future.

Sources from Dass deny this to be the case and commented to local newspapers that the production plant would remain open at least until 2020.

This news adds to the series of other downsizes and closures impacting the footwear industry in Argentina, which have been the concern of many local entrepreneurs, businessmen and associations, claiming urgent measures to tackle the problem.

Image credits: Banter Snaps on Unsplash


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