Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Tavex, a manufacturer of denim, announced on 3 November 2006 its plans to close the factory in Alginet (Valencia) and to reduce the workforce in the unit in Navarrés (Valencia). Around 300 employees will be dismissed altogether. The company has stated that the reasons for the resturcturing are high wages and increasing energy costs, the competition from China and the fact that many Spanish manufacturers of jean clothes have already offshored their activity to the north of Africa or Asia. Tavex merged with Santista, a Brazilian textile company, at the beginning of 2006 and announced then that it would invest 300 million euros in new factories in Central America and Asia in the next five years. The company will only maintain the offices, the research and development centre and the logistics central store in the plant of Navarrés (Valencia).
Eurofound (2006), Tavex, Offshoring/Delocalisation in Spain, factsheet number 64378, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/64378.