HanesBrands to close sportswear plant in El Salvador, affecting over 1,500 employees
The North American company HanesBrands has announced the closure of one of its plants in El Salvador, impacting over 1,500 employees. The plant, El Salvador Sew, which is dedicated to producing sports clothing, is located in San Juan Opico.
In an official statement, the company cited the uncertainty of global economic conditions and low consumer demand as the reasons for the closure. “The parent company has taken measures to align and consolidate production capabilities and resources to continue serving our customers and consumers in the best way possible. For this reason, today we inform all our employees at El Salvador Sew that we are forced to carry out a total, forced and definitive closure of this plant,” the statement read.
The closure is set to take place in phases, with the first phase beginning immediately, resulting in the dismissal of 702 employees. The company stated that they will continue the process “in accordance with the production requirements of the business until the total closure of the plant is completed.”
HanesBrands has been a significant presence in El Salvador for many years, with the company reaching sales of $717.6 million in the country in 2022. The company employs over 8,000 workers in El Salvador but this number will be significantly reduced with the closure of the San Juan Opico plant.
The closure comes as a surprise as HanesBrands was recently recognized by the Salvadoran Association of Industrialists with several awards for being the largest industrial exporter and the largest employer in the industrial sector.
The plant, El Salvador Sew, opened its doors in 2009, and its closure is expected to have a significant impact on the local community in San Juan Opico. HanesBrands first entered El Salvador in 1992 and has been a major player in the country’s textile and clothing sector.