Brazilian shoe manufacturer Paquetá is to move its production facilities to the town of Chivilcoy near Buenos Aires, Argentina, and has already started recruiting its first 500 workers. According to Perchet Argentina S.A., production should start at the facility next October.

During the next 10 months, a training centre will be established and the first machinery will be installed. This constitutes the first stage of a $20 million four-year plan.

The group that employs 10,000 people at its 12 Brazilian factories has decided to transfer the production of sports shoes from the state of Rio Grande do Sul to Chivilcoy, as a result of incentives offered by the Argentinian authorities. "We have been evaluating whether we should become partners of an Argentine company or move to Argentina. We decided for the latter after evaluating the incentives offered by the local authorities," said Ricardo Salgueiro, president of Perchet.

Débora Giorgi, production minister for the Province of Buenos Aires, welcomed the move, stating, "It is important for the province to recover its shoemaking tradition. Three decades ago, Buenos Aires used to produce 100 million pairs of shoes per year. Today, the whole country produces just 70 million."

Paquetá currently holds the license for Italian brand Diadora in Brazil and owns the Dumont brand which supplies clothing to adidas.