Clothing and footwear factories are closing en masse in Russia

The war and the reorientation towards military production are destroying civilian production in Russia. Experts predict that after the military contracts are completed, workers will return, but the enterprises will no longer exist by then.

Russia is facing mass closures of light industry enterprises and brands are moving production abroad. The reasons are labor shortages due to mobilization, rising costs, a shortage of warehouse space, and competition from imports. The Moscow Times writes about this on Wednesday, March 5.

According to the Central Bank of the Russian Federation, enterprises in the Central Federal District are cutting costs by moving garment production to Central Asian countries, where labor and raw materials are cheaper. Shoe production in the region is also falling: demand is falling and imported goods are cheaper.

The famous Russian brand Gloria Jeans is closing all its factories in the Rostov region, where 30 people worked for over 2500 years. The company's owner explained that because of the war, some of the workers were mobilized, while others chose more profitable military orders. Gloria Jeans is completely transferring production to Pakistan, China, India, Vietnam, Bangladesh and Uzbekistan.

Another large manufacturer, Unichel Holding, is in a similar situation. In two years, the number of employees at its factory in Chelyabinsk has halved. The company has already sold the plant in Zlatoust and is looking for buyers for other sites.

Factories of smaller brands are also closing. For example, in Bryansk, the Bright company, which had been producing shoes for over 70 years, has ceased operations, and in Kaluga, the Romer factory has closed.

The main reason for the mass closures is the transfer of seamstresses and other workers to the military sector. The conditions there are more favorable: salaries in the production of uniforms and ammunition are much higher. One businessman said that his potential employee demanded 400 thousand rubles a month, citing the fact that he had previously received 1,5 million rubles for cutting bulletproof vests.

Expectations for a "renaissance" of the Russian fashion industry after the emergence of Western brands did not come true. Only those who did not produce independently but placed orders with other factories won.

The war and the reorientation towards military production are destroying civilian production in Russia. Experts predict that after the end of military contracts, workers will be forced to return, but many enterprises will no longer exist by then.