Saipan adds two more garment manufacturing units in the list of the already closed ones. Mirage Inc and Commonwealth Garment Manufacturing Inc have announced closure with effect from February 10, 2008.
With the shutters of these two units coming down, Saipan will record 7 shutdowns in the past one month alone. General Manager of the respective firms informed the Department of Labor on December 12.
However, the units will continue operation and activities till February. Although the reasons were not very clearly specified, it is believed that the implementation of the federal Minimum Wage Act and stiff competition from international garment industries coupled with low cost of labor in other countries have taken their toll on the facility.
Since January 2005, the two garment manufacturing companies will account for being the 20th and 21st garment factory to shutdown since January 2005. While, Winners Corp, Sam Kwang Saipan Corp, and L&S Apparel Inc have already terminated its operation, Neo fashion has also announced a closure by next year.
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