Dass Group, a Brazilian conglomerate responsible for manufacturing footwear and textiles for global brands such as Nike, Adidas, Fila, Umbro, Asics and Champion, has completed the transfer of its machinery from Argentina to Paraguay. The new industrial plant, set up under the Maquila Regime, began operations in March this year, with an initial investment of US$ 40 million.
The decision was motivated by an adverse scenario in Argentina, marked by the influx of imported products, rising operational costs and a lack of accessible credit lines. The factory in Coronel Suárez, in the province of Buenos Aires, was closed after heavy indebtedness, and all machinery was reactivated in Paraguay.
Paraguay's Minister of Industry and Commerce, Marco Riquelme, attended the opening ceremony and highlighted the arrival of investors. “We are receiving Brazilian investors, owners of brands such as Fila and Umbro, as well as manufacturers for Nike, Asics and Champion. Today we see the first Fila pieces produced in Paraguay,” the official celebrated.
While production grows in Paraguay, the plant in Eldorado, in the Argentine province of Misiones, operates at reduced capacity. The factory, which previously maintained 60 simultaneous production lines, now sustains only 15, focusing on footwear assembly. The union Unión de Trabajadores de la Industria del Calzado de la República Argentina (UTICRA), through its leader Gustavo Melgarejo, stated that the company ruled out the definitive closure of the unit in recent hearings. “The company has already ruled out definitive closure in the hearings. That would be something to cool down the uncertainty that social media often generates,” Melgarejo declared.
The transfer reflects the attractiveness of Paraguay's tax incentive regime and the availability of local labor, while Argentine industry faces structural challenges.