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Article

19 Nov 2021

Author:
Thomson Reuters Foundation

Ethiopia: PVH closes manufacturing facility after suspension of trade deal

"Fashion giant PVH to close factory; Ethiopia blames U.S. sanctions", 19 November 2021

...PVH Corp. is closing a manufacturing facility in Ethiopia...two weeks after the African country lost duty-free access to the United States over the ongoing conflict in Tigray...

The move by PVH, which owns Calvin Klein, Speedo and Tommy Hilfiger, is the first retreat from a large manufacturer following suspension of duty-free access...

This year, PVH sold several brands, and the company said this prompted it to begin planning a transition of the facility to a trusted supply partner active in Ethiopia.

"The speed and volatility of the escalating situation there made the transition no longer possible, resulting in the difficult decision to close the facility," PVH said in a statement...

PVH did not say how many people worked at the factory and did not immediately answer a question about it...

PVH said in its statement that it was still "committed" to its third-party manufacturing partners in Ethiopia.