Magazines Archives - 2008 March

Levi’s to close 36-year-old Manila plant
Story 10

ICONIC denim-apparel company Levi’s Strauss & Co has announced the closure of its 36-year-old Philippine cut-and-sew apparel plant in Manila by July 31 this year. Levi Strauss Philippines Inc
country manager Ramon Martelino said that the shutdown, which would lay off 257 employees, would stem costs.

The plant has been producing Levi’s jeans for the Philippines and other Asian markets since 1972.
“This has been a very difficult decision for us. We have examined comprehensively all other options, including cost containment, and improving the efficiency and productivity of this plant as first options. Unfortunately, such measures cannot overcome the significantly lower costs of outsourcing,” he said.

Brands under the Levi’s portfolio, namely Levi’s and Dockers, will continue to be sold in the country
through a large franchised retail distribution network. Officials said the goods would be sourced from a handful of selected contractors in Asia. “Levi Strauss & Co regards the Philippines as a key market in the Asia-Pacific. This move reaffirms our marketing presence as we remain
committed to bringing premium quality, branded Levi’s and Dockers products as well as innovative
marketing programmes to both our customers and consumers,” Martelino said.