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Unit located in Eldorado, in the province of Misiones, will be deactivated between July 17 and 25; company states that shoe industry crisis, production drop, and imports made the operation unfeasible
The shoe factory of Grupo Dass, located in Eldorado, in the province of Misiones, Argentina, will close its activities after almost two decades of operation.
The company announced the decision on Monday, July 6, and confirmed the dismissal of 150 employees.
According to the company, the unit will complete the closure between July 17 and 25.
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Grupo Dass stated that it exhausted the available alternatives to keep the manufacturing structure operational.
Crisis in the shoe sector pressured the factory’s operation
The crisis faced by the Argentine shoe industry directly affected the operation of Grupo Dass.
In a statement sent to the Exclusivo portal, the company linked the closure to the worsening difficulties faced by the sector in the country.
The company highlighted the persistent drop in production, the lack of new orders, and the opening of imports.
Moreover, the entry of imported products, mainly from China, reduced the competitiveness of the factory.
In this scenario, Grupo Dass considered it “unfeasible to sustain the local manufacturing structure”.
Unit operated in Eldorado for 19 years
The industrial plant in Eldorado operated for 19 years and played an important role in job creation in Misiones.
At the peak of production, in 2015, the factory produced approximately 22,000 pairs of shoes per day.
During that period, the unit maintained three shifts and employed about 1,500 workers.
The portal Misiones Online published the numbers related to the factory’s peak activity phase.
Now, the company will permanently cease production at the site.
Company had denied transfer to Paraguay
In May, Grupo Dass denied rumors about a possible transfer of the Argentine operation to Paraguay.
At the time, the company stated that the information disclosed was not true.
Months later, however, the company officially confirmed the closure of the Eldorado factory.
Grupo Dass will remain present in Argentina
Even after closing the industrial unit, Grupo Dass will maintain activities in Argentina.
The company will focus its presence in the country on commercialization and logistics areas.
The brand management office in Buenos Aires will continue operating.
Additionally, the company will maintain the footwear distribution centers located in Coronel Suárez and Cañuelas.
Group maintains operations in Brazil, Argentina, and Paraguay
Grupo Dass presents itself as the largest integrated management and sourcing operation for sports brands in the Americas.
Currently, the company has more than 26,000 employees in Brazil and Argentina.
The group also maintains factories in both countries, as well as operations in Paraguay.
In Brazil, the company has industrial units in states such as Bahia and Ceará.
Therefore, the closure of the Eldorado plant does not completely end Grupo Dass’s presence in the Argentine market.
Closure marks a change in the company’s strategy
The closure of the unit represents an important change in the productive structure of Grupo Dass in Argentina.
With the decision, the company ends 19 years of footwear manufacturing at this plant.
The drop in production, reduction in orders, and international competition directly influenced the decision.
In your opinion, does the closure of this factory reflect just a company problem or show the challenges currently faced by the footwear industry in the face of international competition? Leave your opinion in the comments and join the discussion.
