Posted at 8:46 p.m., Tuesday, March 27, 2007
2 more clothing factories in Saipan say they'll close
Associated Press
SAIPAN, Northern Mariana Islands — Two more major garment factories say they will close within the next two weeks as manufacturers here continue to struggle against competition from factories in countries where labor is cheaper.Michigan Inc. has filed a notice with the U.S. Department of Labor announcing it will shut down its operations by March 30. The decision would leave 150 migrant workers, mostly from China, without a job. But the department said it will allow the workers to transfer to other employers.
Grace International Inc. also filed notice with the department saying it would close by April 7. The company's 100 migrant workers will be paid until April 25.
The latest announcements would bring to 15 the number of garment factories in Saipan that have closed down since the World Trade Organization lifted the quota on garment export products to the U.S. on Jan. 1, 2005.
Thousands of migrant workers, primarily from China, have lost their jobs in the process.
The value of garment exports from Saipan dropped in 2006 by 25.2 percent to $486.5 million — down from $650.8 million in 2005, according to data from the U.S. Commerce Department.
Garment production in Saipan had been a billion-dollar industry in 1999 contributing up to $82 million in taxes to the Northern Mariana Islands government.
China holds the current lead in exporting apparel products to the U.S.
