ECCO Closes Factories Amid Global Restructuring

Danish footwear manufacturer ECCO has ceased production at its Vietnamese factory and is closing a separate facility in Portugal, affecting thousands of workers as the company reorganises its international manufacturing operations.

The Vietnamese plant, located in Bau Bang Industrial Park in Ho Chi Minh City, stopped operating on 2 November. Local authorities said the closure affects 1,611 workers, including 259 outsourced employees. Most employment contracts are expected to end on 30 November, although a limited number of staff will remain temporarily to assist with the closure process.

ECCO has attributed the restructuring to prolonged weakness in footwear demand and excess production capacity. The group intends to concentrate manufacturing within a smaller number of facilities as it seeks to reduce costs and improve efficiency. Its Portuguese factory, employing approximately 650 people, is also scheduled to close, while additional reductions are expected across corporate and regional operations. The Vietnamese site began production in 2020 following an investment of more than $38 million, illustrating how quickly manufacturing requirements can change when market conditions deteriorate.

The closures reflect the pressures facing international footwear businesses as consumer demand becomes less predictable and operating expenses remain elevated. Concentrating production could improve utilisation at remaining factories, but it also reduces employment in communities that have benefited from overseas manufacturing investment. For ECCO, the commercial challenge will be maintaining product quality, delivery reliability and its established reputation while operating through a leaner production network. The restructuring demonstrates how even longstanding international brands are reconsidering the geographic scale of their operations.