Levi Strauss Exits Poland: Manufacturing Plant to Shut Down After 33 Years
Levi Strauss & Co., the renowned American jeans manufacturer, has declared the shutdown of its historic clothing factory in Płock, Poland. This factory, a pillar of the local economy since 1991, is set to halt production by mid-June, leaving 650 employees in the lurch.
The company attributed the closure to a combination of factors, including:
- Difficulties in hiring qualified staff: Levi Strauss reportedly faced challenges in finding skilled workers to maintain full production capacity at the Płock plant.
- Rising production costs: High inflation, surging energy prices, and a weakening Polish zloty significantly increased production costs in recent years. While production value grew 20% year-on-year, costs rose by 25% in the same period.
Despite recent improvements in Poland's economic landscape, with inflation slowing and the zloty strengthening, Levi Strauss concluded that continued operation in Płock was no longer viable.
The company has prioritized supporting its departing employees, offering assistance during this transition. The city of Płock has also pledged its support to the impacted workers, offering resources and actively seeking a new occupant for the factory.
The factory's closure signifies the end of an era for Levi Strauss in Poland and poses a significant hurdle for the 650 workers who will be jobless. However, the city's dedication to securing a new employer and the overall upswing in Poland's economy provide a beacon of hope for the future.
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Date of record
5 April 2024
