Salvadoran Textile Factories Adjust Costs
With the increase in the electricity bill, businesses are looking to cut costs to avoid raising prices.
Thursday, April 16, 2009
The president of the Textile Industry, Clothing and Free Trade Zones Chamber in El Salvado (Camtex), José Tobar, explained in an Elmundo.com.sv article that adding the energy increase to prices would mean a loss of competitiveness for the Salvadoran sector when compared to other countries.
Industrialists and entrepreneurs have criticized the abrupt elimination of the electricity subsidy by the government.
The price paid by Costa Rican industry for electricity consumption is 41% higher than in the European Union and 259% higher than in the U.S.
Businessmen in Costa Rica attribute the outflow of $31 million in the first quarter of the year to the close down of operations of businesses in the sector who have decided to move to neighboring countries.
The company founded on Costa Rican capital, Jack's Foods, has announced that within five years it will transfer 50% of its production activities to Nicaragua, El Salvador and the United States.
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