Business nervous over closing of Nicaragua's maquilas

An announcement about the closing of various plants of the international consortium Nieng Hsing has raised anxieties in Nicaragua's business community about the future of the free trade zone and its 14,000 workers.

Friday, June 27, 2008

Nieng Hsing, which has operated in Nicragua since the 1990s, has already closed five of its plants. The remaining one, Shao Hsing, employs about 3,200 persons. The 1,500 employees dismissed from the other companies have found other work in the zone.
Last year, six other companies ceased operations in the free trade zone, throwing 2,325 employees out of work. Five of the companies were in the clothing and shoe manufacturing business.
However, all the news is not bad. Several new operations have been established in the zone this year, creating 2,756 new jobs.
Officially, the cause of the shutdown is attributed to competition from Asia, but Nieng Hsing also appears to have run afoul of the regulatory environment.

More on this topic

Nicaragua: Opportunity in Women's Shoes

June 2014

North American entrepreneurs in the footwear sector have emphasized the advantages of the Nicaraguan industry as providers of high heel shoes for ladies.

Surpassing China, Vietnam, Cambodia, Indonesia and Bangladesh and ranking below average in cost of quality leather shoes ($ 3.30 per pair), manufacturing soles ($ 0.43) and the development of a pair women shoes ($ 8.17), Nicaragua has become highly attractive as a destination for industry manufacturers and a candidate for a strong manufacturer and exporter of women's shoes.

SCA Footwear Nicaragua Reduces Production of Shoes

September 2012

The Brazilian-owned company is not closing its operations but only reducing production because of less demand from regular customers in Europe.

An article in Laprensa.com.ni reported that "Last week, workers at the company which belongs to the Brazilian group Schmidt Irmaos Calzado, were concerned about the future of the company, due to the reduction in their production lines.

Free Zone Aiming for Footwear and Auto Industry

January 2012

ProNicaragua seeks to attract companies from the footwear and auto parts industry to operate in the country's free zones.

Javier Chamorro, Executive Director of the investment promotion agency, ProNicaragua, noted that they are seeking to "generate development poles" in these two sectors.

Nicaragua: 54% of Jobs Recovered

August 2010

In the last six months 25,000 of the 46,000 jobs lost between 2008 and 2009 have been recreated.

José Adán Aguerri, president of Nicaragua's Private Business Council (COSEP), indicated that the greatest recovery was seen in free-trade zones and in the farming and construction sectors.

 close (x)

Receive more news about Business and Investment

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Ramirez Company

Organization that operates in El Salvador and Guatemala.
Phone: (503) 2426-1030 - (503) 7718-5819

Company Profile

Companies

Stock Indexes

(Dec 15)
Dow Jones
0.58%
S&P 500
0.90%
Nasdaq
1.17%

Commodities

(Dec 15)
Brent Crude Oil
62.65
Coffee "C"
120.75
Gold
1,257
Silver
16.01