Argentina’s footwear industry is set to lose a significant manufacturing plant that has long been a hallmark of its production landscape. Brazilian footwear company Dass, which produces brands including Nike, Adidas, Umbro, and Asics, will permanently shut its factory in Eldorado, Misiones — the last plant producing Nike trainers in Argentina. The closure will result in the factory’s remaining 150 employees being left without jobs. The company announced that production will halt from July 17 to July 24, and it will provide full severance to all impacted employees. Industry sources indicated that the decision is indicative of insufficient demand for domestic manufacturing and a strategic pivot in the supply chain of sportswear companies, with the Argentine market set to receive products from Brazilian factories instead. Despite ceasing manufacturing operations, Dass will continue to have a presence in Argentina. The organization will maintain its commercial offices in Buenos Aires and persist in operating logistics centers in Coronel Suárez and Cañuelas, facilitating the distribution of imported products from its brands, which include Fila, Umbro, and Asics.
The closure of the Eldorado plant was not an abrupt choice but rather the result of a protracted downsizing initiative that commenced in 2025 and had previously been indicated by the industry’s labour union. In January of the previous year, Dass ceased operations at its Coronel Suárez facility, which was dedicated to the production of Adidas footwear, resulting in the loss of 360 jobs. In July 2025, the company announced the layoff of an additional 164 employees at Eldorado, citing the necessity to enhance competitiveness amid trade liberalisation and alterations to Argentina’s foreign exchange policies. At the outset of 2026, the Misiones plant eliminated an additional 43 positions, with the union cautioning that verified production orders were secured only until June. With the factory now poised for permanent closure, a site that previously provided employment for as many as 1,700 workers will become entirely inactive.
The Eldorado plant commenced operations in 2007 and, for an extended period, served as one of the principal industrial employers in Misiones. In 2021, Nike made a strategic investment in local production in alignment with Argentina’s prevailing import substitution policy, anticipating an annual capacity of 2.5 million pairs of shoes. The footwear workers’ union characterised the closure as “a true catastrophe,” contending that it signifies the wider crisis confronting the industry. UTICRA Secretary General Agustín Amicone indicated that Dass is not an isolated incident, highlighting a confluence of declining domestic demand, reduced production, and job losses throughout the sector. He also cautioned that the shutdown of a facility of this magnitude would yield considerable economic repercussions for the local community.
Dass has characterised the move as a component of a strategic restructuring. The company contends that sourcing footwear from its eight factories in Brazil has become more economically advantageous than production in Argentina. Under the new model, the group will discontinue local footwear production and instead concentrate on logistics, distribution, and imports. Argentina’s national statistics agency INDEC reported a contraction of 30.9% year-on-year in the footwear and footwear parts manufacturing sector toward the end of 2025, influenced by declining domestic demand and an increase in imports. With the closure of the Eldorado plant, Argentina will lose its last factory producing Nike footwear, marking another setback for a manufacturing sector that has faced increasing challenges in recent years.