After nearly seven decades of operating in the Central American country, the company dedicated to the manufacture of batteries and lighting decided to close its production plant and moved its operations to Brazil.
The restructuring of its operations comes two years after Energizer Holdings Inc agreed to buy the battery and lighting business of Spectrum Brands Holdings Inc. With this acquisition, Energizer absorbed the Varta and Rayovac brands.
Arguing that there is greater potential for sustainable and profitable expansion in Nicaragua and Guatemala, the Mexican business group dedicated to dairy production decided to close the operations of its production plant in Costa Rica.
After 20 years of operation, Modas B.I. Apparel, a company specialized in the manufacture of clothing, decided to close its doors due to the economic crisis caused by the outbreak of covid-19.
The company operated an industrial plant that employed 800 workers and was located at Kilometer 8 of the Atlantic Highway, in the jurisdiction of the Department of Guatemala.
The closure of shopping centers, bars and discotheques, and the suspension of public transport, are some of the measures that began to take effect in the country on March 17, with the aim of containing the spread of covid-19.
The provisions are mandatory and will be in force from March 17 at 00:00 hours until March 31 this year at 24:00 hours, details the presidential agreement published in the Diario de Centroamerica.
Suspension of work for government and company workers, closure of businesses and shopping centers, as well as a ban on the operation of public transport, are some of the measures decreed in the country in view of the threat of the spread of covid-19.
Air, land and sea borders are closed throughout the country, and all sporting, cultural and social activities are cancelled, reported the Honduran presidency.
The company announced that it will close its bar soap production plant of the brands Xtra, Unox, Rinso and Surf that was located in Comayagua, Honduras, and will move operations to the neighboring country.
Unilever Central America announced in a statement that bar soaps will now be manufactured and marketed in Central America by the Guatemalan company Industria La Popular.
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.
From a statement issued by Alimentos Jack's:
Alimentos Jack's, a company founded on 100% Costa Rican capital, has decided to continue its expansion outside of Costa Rica and is planning to transfer 50% of its operations within five years, to the United States, El Salvador and Nicaragua.
Noting high production costs, Incesa has announced the closure in Costa Rica of its sanitary ware manufacturing plant, and its installation in Guatemala and Nicaragua.
Incesa Standard, a subsidiary of the Colombian company Corona, will start closure of operations gradually over the first six months of the year. The company argues that in the production process costs for labor and energy are very high, preventing the continued operation of the plant in the country.
Tobacco leaf producers will still export to Europe and America, while the industry will decline at the same pace as the contraction of the domestic market.
Elperiodico.com.gt reports on Deloitte's study presented by British American Tobacco (BAT), which notes that "in 2011 there were 15.7 million kilos of tobacco leaf for export, which generated $52.8 million in foreign exchange according to statistics from the Bank of Guatemala (Banguat).
"Selim Guatemala S.A." was one of the few producers of colored yarn in the country.
The company moved its Guatemalan operations to Singapore, which employed 100 people.
Alejandro Ceballos, president of Vestex, the Apparel and Textile Commission, told local newspaper 'El Periódico': "...the company had been looking for financing for a long time, but finally decided to relocate to Singapore".
Lack of security and high energy and logistical costs have caused the closure of 150 industrial companies in the past 5 years.
127 maquila operations have closed since 2005, firing 60.000 people. Pharmaceutics company Sanofi-Aventis sold its assets in Setember 2007, Avon did the same by the end of 2008, and more recently Kellog's announced its decision of closing its industrial operations in the country.
The company announced the closure of its Guatemalan production plant in November.
The facility will be used in the distribution chain, for the national market, of products imported from Mexico.
Francisco Alcalá, Kellogg's executive, said: "I regret having to inform that we've decided to close Kellogg's production plant in Guatemala. Financial reasons -as well as our desire to mantain job positions in Mexico by not closing our Toluca plant- led us to this sad decision...".
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