As suspected after the story first broke last weekend, the only Tegra owned zona franca facility in Nicaragua; New Holland Apparel (NHA) in Tipitapa is closing down with over 1,000 job losses.
The Nicaragua closure has now been confirmed by Tegra themselves as well as the Central Sandinista Workers Union (Central Sandinista De Trabajadores – CST). The union is working on an amicable solution to the layoffs of anywhere between 1,000 and 1,200 employees.
It is strongly rumored that the production and jobs will be picked up by another Tegra factory as they consolidate manufacturing in the Central American region to their factory in El Salvador.
Tegra LLC operates is a clothing manufacturer from Atlanta, Georgia, USA. They offer; design, cutting, sewing, embellishment, distribution, and logistic services. They have 11 different companies in the Tegra LLC group. Tegra Global is the “umbrella company” that owns and operates three subsidiaries in Central America; Decotex (Art FX) in El Salvador, New Holland Apparel (NHA) in Honduras (also closing) and New Holland Apparel (NHA) in Tipitapa, Nicaragua.
NHA are located in the Astro Carton Industrial Park in Tipitapa where for ten years they have produced sports clothing for prestigious brands such as Nike, Adidas and Under Armor.
You may recall that at the end of March 2021, Astro Packing Solution, S.A. announced the indefinite closure of their manufacturing facility at the Astro Carton Industrial Park in Tipitapa with job losses around the 500.
FREE TRADE ZONE
Zona Francas or tax free zones are essentially a customs category or status where a manufacturing zone for export of products is established. They are usually built in host countries by foreign investment near ports or international airports. Businesses working in the industrial park can import raw materials and manufacturing equipment without duties. Those raw materials are then used to manufacture products in the zone and then ship them for export, also without interference by the customs authorities of the host country.
