Shortly after its decision to invest in a factory in India, Vulcabras is announcing the shutdown of the factory set up at Parobé, in the Brazilian state of Rio Grande do Sul, in 1958 by Azaleia, the big shoe company that it acquired a few years ago. The factory employs some 8,000 people in the production of Azaleia, Dijean, Olympikus and Reebok shoes, representing 2 percent of Vulcabras' work force and 3 percent of its production capacities. The company will keep employees involved in product development, planning, logistics, marketing and human resources, but will no longer have any production in Rio Grande do Sul. It costs more to make shoes there than in the Brazilian state of Nordeste or in Argentina, where the group's other production units are located. India is even cheaper and Vulcabras plans to hire 1,000 workers there in a first stage and up to 10,000 later on.

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