Coteminas, by Josué Gomes, closes partnership with Shein – 04/21/2023 – Panel SA

The strategy for nationalizing production announced by retailer Shein and the Ministry of Finance on Thursday (20th) also includes commercial partnerships with local producers. Coteminas (Companhia de Fabrics Norte de Minas), owned by businessman Josué Gomes, president of Fiesp (Federation of Industries of São Paulo) will be one of them.

The company announced in a statement to the market that it had signed a memorandum of understanding with the Chinese retailer.

According to a material fact signed by Coteminas’ Investor Relations Director, João Batista da Cunha Bonfim, the document foresees the “establishment of a partnership” so that “2,000 of its clothing manufacturing clients become Shein suppliers”.

This supply, according to the statement, will serve the domestic market in Brazil and Latin America. The memorandum of understanding also includes provisions for “financing for working capital” and “contract for exports of household products”.

In a letter released by the Ministry of Finance on Thursday, Shein says it will close commercial partnerships with 2,000 Brazilian manufacturers and expects to generate 100,000 new jobs over the next three years. The retailer promises to invest R$ 750 million to increase the competitiveness of the textile industry in Brazil.

Shein was at the center of discussions on the possibility of the federal government ending the tax exemption on imports of products worth up to US$ 50 when remittances were between individuals.

Entities, mainly those linked to the textile sector, have demanded a solution for what they consider to be unfair competition with the local industry. According to these associations, the exemption benefit had been fraudulently used by companies to avoid paying taxes on goods entering Brazil.

Joana Cunha with Fernanda Brigatti

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