Argentina’s Last Nike and Adidas Shoe Factory Is Closing

Companies

The closure of Argentina’s last Argentina Nike Adidas factory marks the end of an era for the country’s sportswear industry.

The plant sits in Eldorado, in the northern province of Misiones. It is run by Dass, a Brazilian group that made shoes there for global brands.

Now it is closing for good. Production will end in July, and about 150 workers will lose their jobs, with full severance promised.

Why the Argentina Nike Adidas factory is closing

The company blames the new economy. It points to a wave of cheap imports and a slump in local orders that made the plant unviable.

Argentina has opened up to trade. Under President Javier Milei, import barriers have fallen sharply, exposing local factories to foreign competition.

Local orders dried up. The brands stopped placing enough work with the plant to keep it running, the company says.

The decline was gradual. It followed earlier closures and layoffs at the group’s Argentine sites over the past 18 months.

What the Argentina Nike Adidas factory closure means

Production moves abroad. The group will now supply the Argentine market from its eight plants in Brazil, importing finished shoes.

The company is not leaving entirely. It will keep commercial offices and logistics centres, shifting to a purely import-and-distribution role.

The human cost is local. At its peak the plant employed about 1,700 people, a major economic engine for its town.

For a foreign investor, the read is a trade-off. Milei’s opening tames inflation and cuts prices, but it squeezes local manufacturers hard.

The union calls it a catastrophe. It warns that skilled jobs and industrial know-how, once lost, will be very hard to rebuild.

The plant has a long history. It opened almost two decades ago and was, for years, one of the main industrial employers in its region.

There was once a bigger plan. As recently as 2021, one of the brands backed investment there, aiming for millions of pairs a year under import substitution.

That model has now reversed. Premium sports shoes, once made locally, will again be a purely imported product in Argentina.

The case is not isolated. Other footwear firms have also shifted from local production to importing, part of a wider industrial retreat.

The sector has been shrinking. Falling consumption and rising imports have combined to erode jobs across Argentina’s shoe industry.

The parent group is thriving elsewhere. Dass continues to expand in Brazil and has added capacity in Paraguay, even as it pulls out of Argentine manufacturing.

That contrast is telling. The same company finds it makes more sense to build in neighbouring countries and ship finished goods across the border.

The debate is political. Supporters say cheaper shoes benefit consumers, while critics see a hollowing-out of Argentine industry.

The brands themselves stay silent. Neither of the two sportswear giants has commented publicly on the end of local production for their shoes.

For now, the plant winds down. Its machines may move to Brazil, and a town that grew around sneakers must look for a new anchor.

Frequently Asked Questions

Why is the Argentina Nike Adidas factory closing?

The Brazilian group Dass says cheap imports and weak local demand made its Eldorado plant unviable. Under President Milei, Argentina has opened up to imports, and the brands stopped placing enough orders to keep local production going, so the group is closing the plant and cutting about 150 jobs.

Where will the shoes come from now?

The group will supply the Argentine market from its eight factories in Brazil, importing finished shoes. It will keep commercial offices in Buenos Aires and logistics centres in the country, but will no longer manufacture there.

Why does it matter?

It captures a core trade-off in Milei’s economic model: opening to imports has helped cut prices and inflation, but it is squeezing local industry. The closure ends domestic production of premium sportswear and, unions warn, erases skilled jobs and industrial know-how that are hard to recover.