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The Chinese Shein Plans to Build a New Factory in the Country. The New Unit, Which Promises to Generate Thousands of Jobs, Will Be Installed in RN.
Shein, the Chinese clothing company, recently announced its new partnership with the Federal Government to open a new unit in the country. The Shein factory promises to create 100,000 job openings and more clothing in Brazil. This is a pilot project that is expected to be expanded across various regions of the country, starting in the Northeast region.
Chinese Shein Plans to Invest Millions of Dollars and Create Over 100,000 New Job Openings
The announced investment in the new Shein factory is $150 million, which in direct conversion amounts to about R$ 750 million across the national market. The initiative will start in Natal, in the state of Rio Grande do Norte, in partnership with the Coteminas factory in Macaíba.
Initially, the first pieces produced in Brazilian territory will be jeans, cotton fabrics, and denim. The announcement was made after a meeting between brand representatives, the governor of RN, Fátima Bezerra, and President Luiz Inácio Lula da Silva.
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Shifting production from abroad to a new Shein factory in Brazil, which promises to create several job openings, has been something the brand has been studying. According to the chairman of Shein’s board in Latin America, Marcelo Claure, two months ago, the Chinese Shein made a commitment to the country to shift production to the domestic market, open two thousand factories, and create 100,000 job openings. The initial variety of production at the new Shein factory aims to meet the needs of the domestic market, and in the long term, it could make Brazil a competitive exporter.
Partnership May Promote National Industrialization
The pilot project by the Chinese Shein in Rio Grande do Norte is not coincidental; the region is a major textile producer and has a tax incentive program in place. For Fátima, the state has potential and affirms that this is a recognition of RN’s skilled workforce and its vocation for the textile industry.
In addition to the positive impact on the job market in the region, the partnership between the Federal Government, Rio Grande do Norte, and Shein may encourage national industrialization.
Fátima explains that this means more citizenship and more job opportunities for various regions of RN. This is how the tax incentive program is expected to work. The more job openings there are for the interior, the greater the incentive it will receive.
The president of Fiesp, Josué Alencar, also participated in the meeting and expresses optimism about Shein’s investments in clothing production in the country. Due to the skilled workforce in Rio Grande do Norte, the initial cost calculations indicate that the products will be very competitive.
Temporary Shein Stores
The Chinese retailer Shein announced last year that it plans to open 5 pop-up stores in Brazil, meaning temporary ones, as early as next year. One of the units is expected to be installed in Belo Horizonte.
The other cities where the units will be installed, as well as the opening dates or how long the stores will remain open, have not been confirmed by the e-commerce company. In November, the company opened a temporary store located in Shopping Vila Olímpia, in São Paulo, which was the first in the country to conduct physical sales outside the brand’s app.
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