New Alpargatas plant boosts Havaianas production by 40%

Monday 28 October 2013, 4:51PM
By Bossanova Enterprises Ltd

The company will generate 2,500 direct jobs and 3,000 indirect positions in Montes Claros, in the state of Minas Gerais, Brazil, to reach an annual production of 102 million pairs of flip-flops.

In an effort to support the growth of the most prominent Brazilian brand worldwide, Alpargatas opens a new factory in Montes Claros, in the state of Minas Gerais, which will expand the production capacity of Havaianas by 40% – to more than 102 million pairs annually. The facility will produce more than 100 different models, to be worn by 260 million feet across the globe. 

The state-of-the-art Montes Claros plant is also prepared to manufacture other types of footwear made of rubber. The area where the plant was installed spans over 370,000 square meters, with 53,000 square meters of built space. Investment in the new plant, which was designed to optimize the use of natural resources, totaled R$ 279 million.

The unit makes smart use of natural ventilation and lighting; solar power is used to heat employee showers and exterior lamp posts. In addition, water treatment procedures will allow it to be reused in gardens and restrooms, while production residuals will be reintegrated to the manufacturing process of new products.

Why Montes Claros?
The new plant’s location was chosen based on several different criteria, such as taxes, workforce qualification and costs, production and distribution logistics, among several others. “Alpargatas had considered the possibility of building a plant in China, but we eventually chose Brazil due to the Brazilian nature of Havaianas. Our consumers find it extremely important to have the made in Brazil stamp on their flip-flops”, said Márcio Utsch, CEO of Alpargatas.

Northern Minas Gerais was the region that stood out in an evaluation of possible sites around Brazil. “Montes Claros was chosen for its outstanding infrastructure and proximity to major consumer centers in the Southern and Southeastern regions, in addition to the fact that other multinational companies are already present there”, said Utsch.

In addition to the plant, the built area also includes a warehouse, a Meggashop store – an outlet for the company’s brands – and the Alpargatas Space, an exclusive space to showcase the history of footwear and that of the company, particularly regarding the Havaianas brand. And while the plant sets its roots in the town, the Alpargatas Institute –Alpargatas’ corporate social responsibility unit – starts its activities in the community. The institution promotes educational projects through sports and cultural activities, in addition to corporate volunteer initiatives.

The new plant is expected to create 2,500 direct and 3,000 indirect jobs. In addition to job generation, the company will increase local tax collection and improve the town’s economic dynamism through the increased demand for services and commerce.

Local production will focus on higher added-value products. The plant will manufacture all flip-flops of its slim, baby, casual, surf, and printed lines. Other models will continue to be produced in the Campina Grande plant, in the state of Paraíba.
Global brands
Established in 1907, Alpargatas is the leader in the Latin American footwear industry. The company features renowned brands, such as Havaianas, Dupé, Topper, Rainha, Sete Léguas and Meggashop. In addition, the group holds Mizuno and Timberland licenses. Osklen’s acquisition was a crucial strategic step for the company’s expansion, enabling the deployment of a luxury lifestyle fashion platform.
With net revenues totaling R$ 3.1 billion in 2012, Alpargatas has 12 manufacturing plants in Brazil and Argentina, as well as a significant retail presence. It currently has 580 brand-exclusive shops throughout Brazil and abroad. The company also exports its products to 106 countries.
Throughout its history, Alpargatas pioneered the creation of products that thoroughly amaze its customers, always staying ahead of the trends. “Such entrepreneurship has always been a strong factor in all areas of the company. A good example of that is the fact that we are currently celebrating 100 years from the company’s IPO”, said Utsch.

About Alpargatas

As the Latin American footwear industry leader, Alpargatas owns renowned brands, such as Havaianas, Dupé, Topper, Rainha, Mizuno, Timberland, Sete Léguas and Meggashop. The Company offers innovative products with high technology and cutting-edge design, and is fully qualified to build and manage desirable brands, which promoting solid and long-lasting consumer relationships. With net revenues totaling R$ 3.1 billion in 2012, Alpargatas has plants in Brazil and Argentina, 580 stores worldwide, and exports its products to 86 countries.


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