LEVI Strauss & Co. announced Wednesday it will be closing its cut-and-sew apparel plant in Manila, with the termination of employment for 257 persons. The last day of plant operations will be July 31, 2008.

The company believes that the plant closure will allow it to focus on its core competency of marketing its branded products in Asia, in line with the company’s overall global strategy.

This is a strategic decision that will enable the company to grow its business in the region.

“This has been a very difficult decision for us. We have examined comprehensively all other options, including cost containment and improving the efficiency and productivity of this plant as first options. Unfortunately, such measures cannot overcome the significantly lower costs of outsourcing,” said Ramon Martelino, country manager for Levi Strauss Philippines, in a statement.

“We deeply appreciate the contribution of our employees and understand that this is a troubling time for those affected. We will do our best, in line with Levi Strauss & Co.’s values, to treat our employees with dignity and respect, and help them explore employment elsewhere.”

Levi Strauss Philippines will continue to have a significant presence in the country through its commercial business, retailing branded apparel in major cities through a large franchised retail distribution network.

“Levi Strauss & Co. regards the Philippines as a key market here in Asia Pacific. This move reaffirms our marketing presence as we remain committed to bringing premium quality, branded Levi’s® and Dockers® products as well as innovative marketing programs to both our customers and consumers,” affirmed Martelino.

“As a mark of appreciation to the community in Manila who have welcomed our presence in the last 36 years, the Levi Strauss Foundation will be making a philanthropic grant of about $50,000 to a nongovernment organization in the Philippines to assist residents of communities near the plant with social and economic development programs,” said Martelino.  Details of this grant and programs will be disclosed later.

The Levi Strauss Foundation was established in 1952 in the United States to provide grants to nongovernment organizations working to create meaningful social change in communities where the company does business.

The Levi Strauss & Co. and Levi Strauss Foundation Community Transition Fund grants program extends resources into communities where Levi Strauss & Co. has closed facilities. The grant program is designed to help residents transition to new employment and career opportunities and to help ease social and economic impacts on these communities of such closures.

The cut-and-sew apparel plant has been in Manila producing Levi’s® jeans for the local and Asian markets since 1972. 

With this plant closure, Levi Strauss Philippines will source product from a handful of select contractors in Asia.

LEVI Strauss & Co. announced Wednesday it will be closing its cut-and-sew apparel plant in Manila, with the termination of employment for 257 persons. The last day of plant operations will be July 31, 2008.

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