Reportedly the largest denim manufacturer in Europe, Spanish textile company Tavex Algodonera is to close its Brazilian unit in order to streamline operations.

According to reports, approximately 400 jobs are likely to be affected by the closure, but it is believed the company will offer workers compensation. The follows the group’s acquisition of Brazilian denim firm Santista Têxtil in 2006. Santista also has factories in China and Argentina.

The two companies will have a combined production capacity of 150 million metres of denim per year and revenues exceeding $500 million. 

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