Indonesia: Sportswear factory to shut down, laying off over 1000 workers, following a decline in orders
Summary
Date Reported: 1 Sep 2023
Location: Indonesia
Companies
PT Tuntex Garment Indonesia - Supplier , Hurley - Buyer , Nike - Buyer , Puma - BuyerAffected
Total individuals affected: 1163
Workers: ( 1163 - Location unknown , Clothing & textile , Gender not reported )Issues
Purchasing practices: Order volume , Impacts on LivelihoodsResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: PT Tuntex Garment allegedly supplies to Hurley, Nike and Puma; Puma and Nike provided a response to a request for comment from the Resource Centre. Puma stated that after the factory closed, Puma continued to source from Tuntex’s sister factory in Central Java. Hurley did not respond.
Source type: News outlet
"Mass Layoffs: Banten's Largest Clothing Factory Forced to Stop Operating After 32 Years of Operation", 1 September 2023
The largest clothing factory in Banten Province, PT Tuntex Garmen Indonesia, which has been operating for 32 years, was forced to end its business journey.
This resulted in layoffs for 1,163 workers who previously worked there. This closure decision is one of the impacts of various problems faced by this company over the past few years...
This company is known as a provider of manufacturing services for soccer shirts, sports jackets, sweatpants, and similar products. However, despite having well-known clients such as Puma and Nike...the company will be forced to officially cease operations on March 31, 2023...
PT Tuntex Garment Indonesia has not escaped the impact of the COVID-19 pandemic that has hit the world since 2020.
The plant relies heavily on the export of its products, with 80 percent of its market in Europe and America.
During the pandemic, global demand for garment products experienced a sharp decline due to travel restrictions, store closures, and changes in consumer behavior.
One of the main impacts of this decrease in demand is a decrease in orders from PT Tuntex Garment Indonesia's main clients, such as Puma and Nike.
[Translation via Google Translate]