The company which is located in the Zip San Jose Industrial Park had laid-off 1,500 workers in 2008 as a product of the US economic crisis.
According to what LaPrensa.hn reported, the picture is not encouraging for the maquila sector in Honduras: "So far in 2009, about 8 thousand maquila workers have been laid off and 1,547 temporarily suspended. Some eight maquilas on the north coast shut down operations and between January 1 and March 6, 11 other industries of this type requested a temporary suspension of their workers. It is estimated that around 300 companies will close in 2009."
On September 1 the "Pacific Free Zone" (Zip Choluteca) industrial complex will official begin operations, and should eventually provide jobs to some 5000 persons from the southern zone of the country.
Zip Choluteca is located in the sector called "Ciudad Valcanes," an area that is approximately 516 acres, and will have an industrial and commercial area, a bilingual school, and 250 houses for which credit will be made available to workers from the Zone.
The Salvadoran union has stated that excessive bureaucracy and high production costs are the main factors that could be encouraging some textile mills to reduce operations in the country.
José Antonio Escobar, president of the Chamber of the Textile Industry, Clothing and Free Zones of El Salvador (Camtex) told Elsalvador.com that one of the companies that has shut down part of its operations, to transfer them to another country, is Fruit of the Loom.Escobar said"...'In the plant owned by Fruit of the Loom in the industrial park American Park, where a thousand people work, the company will make a reduction of about 850 positions'."
Yu Jin is the second textile company closing during the course of 2009 in Nicaragua, leaving at least 500 people unemployed.
Cone Denim textile from the US was the first textile company to formalize its closing when it requested a temporary, 14-month closing at the end of March due to the suspension of orders from United States. The closing sent 800 people to the ranks of the unemployed.