Grupo Industrial Durango, one of the largest paper companies in Mexico,
added that it is halting production at one if its plants due to high costs.
The company said it had decided to suspend production at the plant in the
western state of Jalisco .
``The fundamental reason for the suspension of this plant is the high cost
of labor, which represents more than 25 percent of production cost, compared to
8 percent and 10 percent in the other five Gidusa factories,'' the company
said.
It said the labor contract was outdated and no longer competitive for the
national paper industry. Its other plants can take on additional production
from the closed plant, Gidusa said.
On Thursday Gidusa reported a drop in operating profit for the first quarter
of this year compared to the same period the previous year. -- Reuters
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