MercoPress. South Atlantic News Agency

Argentina: Footwear manufacturing plant shutdown represents 360 layoffs

In 2024, the Brazilian Grupo Dass manufactured 7.8 million pairs in Argentina

Argentina's chainsaw policies with a US dollar so low that everything is expensive nationwide are beginning to take its toll on the local industry: The Grupo Dass sports footwear manufacturing plant in Coronel Suarez, in the province of Buenos Aires, has been closed down - it used to manufacture articles for the brands Adidas, Nike, and Fila.

The company's restructuring plan includes shifting production to the plant in Eldorado, in the province of Misiones, it was explained Friday.

“The measure is part of the need to adapt the operations to the new market dynamics in Argentina, which is characterized by a change in the economic cycle, characterized by new commercial conditions”, said the Brazilian Grupo Dass in a statement.

The move represented some 360 layoffs, according to Argentine media.

According to the company, the restructuring is due to the fact that the brands with which it works reviewed their strategies and proposed a change in the outlook for the supply of products, with a consequent fall in orders over the last year.

“This change in demand urges us to readjust our industrial size in order to improve competitiveness and seek greater efficiency,” the company stressed. Grupo Dass has been in Argentina since 2008 and has invested US$ 185 million in the country.

From its Misiones plant, it manufactures footwear for Asic, Fila, Umbro, and Nike; while the Coronel Suárez facility, formerly owned by Gatic, was focused on Adidas. Gatic was the original brand licensee for Adidas in Argentina.

In 2024, Dass recorded a production of 7.8 million pairs.