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25th company to fold since 2005

By Emmanuel T. Erediano

SAIPAN, CNMI (Marianas Variety, March 27, 2008) – Another garment factory is shutting down on Saipan, leaving 141 guest workers and 13 residents jobless.

Carlos C. Camacho of the Department of Labor’s garment industry section said Kyung Seung Saipan Inc. in Sadog Tasi will be the seventh garment factory to close this year, bringing the total number of garment factories that have shut down since 2005 to 25.Kyung Seung will cease its operations on May 24.

Camacho said he will meet with the Kyung Seung management on Monday to discuss the fate of the employees who will be displaced.

Garment workers who wish to stay in the CNMI can start processing their transfer applications.

He said the garment shop’s office-based employees will also lose their jobs.

Richard W. Pierce, Kyung Seung’s legal counsel, in a separate interview said they have already notified the employees about the closure.

"Rise in costs and low prices" were the reasons for the closure, he said.

Five garments factories shut down in 2007, and six followed suit in the first quarter of this year. They are Commonwealth Garment Manufacturing Corp., Mirage Saipan Co. Ltd., Neo Fashion Inc., Poong-In Saipan, Sam Kwang Marianas Inc., and Winners Corp.

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