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H&M mulls production in South America and Africa

Swedish fashion giant H&M is considering starting production in South America and Africa, chief executive Karl-Johan Persson told the Financial Times in an interview published on Monday.

H&M mulls production in South America and Africa

“When that part of the world is growing, which it is, it becomes even more interesting to look at production in South America or Central America. So, we are exploring that opportunity … We’re looking at (Africa) as well,” he said.

He added that the company is particularly looking into countries such as Mexico and Brazil.

His comments come almost one month after the collapse of a nine-storey garment factory complex in a suburb of Dhaka caved in and buried thousands of workers, killing over 1,200 people.

Persson, who last week called for a higher minimum wage in Bangladesh, had no suppliers in the building.

H&M announced on May 13th that it would sign an agreement drafted by global unions to improve safety in the Bangladeshi textile factories it uses.

The Swedish company plans to open its first store in Chile in 2013. Persson added that the company’s online launch in the US is scheduled for August this year.

AFP/The Local/og

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BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reportedĀ a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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