British garment manufacturer Dewhirst has decided to relocate its northern England factory to Morocco, where labor costs are cheaper. Some 420 British employees will be removed from their posts as a result of the move to North Africa, reported Evening Chronicle.
The factory, located in Ashington makes ladies’ tailored suits and jackets, mainly for Marks & Spencer. It employs 520 people, of which 100 will keep their jobs in distribution, technical, design and administration.
Dewhirst claims that the Ashington plant has been losing between £18,000 ($28,445) and £35,000 a week. The legal minimum wage in Morocco is approximately 70 pence per hour compared to £4.20 an hour for adults over 22 in the UK. The company has already set up three plants in Casablanca and two in Tangiers. — (menareport.com)
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