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View Full Version : Free zones alive and kicking



NewsWhore
06-06-2008, 04:00 PM
Fernando Capellan, president of the Dominican Association of Free Zones, and president of Grupo M, the largest apparel company in the DR, highlighted the company's contribution to the economy yesterday. He stressed that manufacturing free zone companies' exports make up 70% of the country's total exports. He said that the apparel sector within the free zones makes up 59% of total operations. Free zone employment is at 115,000-130,000 jobs, down from 200,000 in the past.
Capellan said that Grupo M alone employs 11,000 and contracts additional work to 39,000 other workers, mainly in the Santiago area.
Furthermore, Capellan stressed the importance of the Codevi Industrial Park (13 industrial buildings to be constructed in different phases) in Ouanaminthe, a town of 70,000 inhabitants on the border with Haiti, only one kilometer from Dajabon, the largest Dominican city on the border (65,000 inhabitants). Grupo M employs 2,600 Haitians and there are prospects for the creation of 10,000 more jobs in the next five years. Capellan argues that much of the money spent on wages for the Haitians returns to Dajabon in the form of purchases. The industrial park also serves to curtail immigration of job-seeking Haitians to the DR.
Capellan highlighted recent congressional approval of the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) provision that provides additional ways Haitian apparel can qualify for duty-free treatment and authorizes a new apparel sector labor capacity building and monitoring program. Grupo M farms out low-skilled work that would be too expensive to do in the DR to the Haiti industries. Higher value added processes are then carried out in the DR.
Founded in 1986, Grupo M is the largest private sector employer in the DR with 11,000 employees working in 22 production facilities (including JVs) and is the largest apparel producer in the Caribbean/Central American area. Grupo M supplies major US brand name companies including Gap, Old Navy, Liz Claiborne, Eddie Bauer, DKNY, Carhartt, Perry Ellis, Dockers and Levis brands among others. Its output amounts to about 22% of all apparel exports in the country.

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