Overview

• In July, Textilana SA reduced Mauro Sergio output by one-fifth under an internal overhaul.
• The restructuring has led to more than 150 workers losing their jobs, with an additional 50 roles targeted for elimination.
• Online ‘micro-imports’ through platforms such as Shein and Temu topped $50 million in May, intensifying competition for local producers.
• Yarn and fabric output fell by 14% and 26% respectively this year, pushing capacity utilization down to 40%.
• Industry groups warn that currency appreciation and removal of import controls have eroded competitiveness and risk further factory closures.