Brazilian group outsources part of production to cheaper India
21/04/2011
Commentators in Brazil said this move, the cost of which the company has not disclosed, was a reflection of the cost-pressure Brazilian-made goods are coming under from cheaper manufacturing countries, and from the difficulty caused to competitiveness by the comparatively high value of Brazil’s currency, the real.
Vulcabrás’s new facility in India is in Chennai. Over the next two years, the company intends to invest up to $50 million in the new plant and create 5,000 jobs. The new factory will concentrate on making leather uppers for sports shoes.
Company president, Milton Cardoso, told Brazilian media on announcing the development: “Leather uppers produced here in Brazil account for about 70% of our costs. In Asia, this will come down to 30%.”
Share this story:
