[REVISION HISTORY]

South American textile sector downturn and restructuring

Updated 7 times since CLSTR started tracking revisions of this situation.

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2026-09-09 22:45 UTC → 2026-09-12 02:09 UTC · added ~~removed~~

The South American textile industry continues to face a regional squeeze characterized by shrinking output and job losses, alongside niche efforts toward sustainability. In Uruguay, clothing producers are struggling against imported fast-fashion, with industry representative María Elisa Coitiño noting that many brands have shifted production to China. Argentina’s crisis has ~~intensified.~~ intensified as imports now account for approximately 70% of the domestic market, a sharp shift from the historical balance where national production and imports were shared equally. According to Fundación Pro Tejer, the local industry is struggling due to rapid trade liberalization, import deregulation, and the appreciation of the real exchange rate. While imports of raw materials have decreased, imports of finished goods have reached record levels; clothing imports rose by 62% in tonnage and 36% in value during the first half of 2026. The Federación de Industrias Textiles Argentinas (FITA) has denounced what it calls “competencia fraudulenta” (fraudulent competition), arguing that recent tax breaks and deregulation primarily benefit importers. FITA reported a record annual loss of 15,468 jobs between April 2025 and April 2026, with production falling 25.6% and factory utilization dropping to 42.2%. Recent data from INDEC indicates production dropped 26.5% between January and May 2026, with capacity utilization reaching only 46.6% in June. FITA further reported noting that ~~115 establishments ceased operations in the first four months of the year.~~ approximately 30 textile companies close each month. In La Plata, the impact ~~on retail and manufacturing~~ is acute. The historic manufacturer Clan Issime closed permanently in late August after 53 years of operation. Founded in 1973, the family-owned business saw its workforce decline from 129 employees to just nine. Owners Jorge and Dolores Bizet cited the economic crisis, fiscal obligations, and competition from low-cost online imports as drivers for the closure. The local retail sector is also suffering; the clothing store All You Need is closing after eight years, with the owner describing Following the ~~situation as ‘insustainable’, while Alfis Jeans confirmed its~~ closure ~~because sales could no longer cover rents, salaries, and utilities. Most recently,~~ of Clan Issime, the women’s clothing brand Adriana Costantini announced the permanent closure of its two locations in La Plata and City Bell after 14 years of operation. Other regional developments include the consolidation of Gandhi retail locations and the permanent closure of Will Der S.A. plants. Designer Benito Fernández has characterized the climate as “worse than the pandemic,” reporting that up to 70% of machinery in some instances remains idle.

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