Confecciones Leonisa S.A.

With the IIC loan, Leonisa will improve its financial profile with medium-term financing, making the company less vulnerable to changes in the financial market and in terms for accessing financing. The loan will also provide greater stability for Leonisa’s manufacturing and marketing activities. The company depends on a supply chain comprising twelve work cooperatives and over fifty small garment manufacturers, largely male and female microentrepreneurs, and accounting for approximately 2,500 direct and indirect jobs. Leonisa outsources a significant portion of its garment manufacturing.

Three of the work cooperatives (Ecoelsa, Incomar, and Coopimar) were founded thanks to the Sponsors’ initiative and with Leonisa’s support. They are located near the city of Medellín in the towns of El Santuario and Marinilla. These towns, each with a population of approximately 25,000, have gone through periods of violence that generated insecurity and a lack of opportunities for young people, causing them to migrate to Medellín in poor living conditions. In spite of the insecurity in the region, these work cooperatives generated over 1,000 jobs, principally for women, who in many cases are heads of household or mothers. Also, women occupy all of the managerial positions in the cooperatives.

The majority of the cooperatives’ workers are also members through an affiliation agreement; in turn, the cooperatives are responsible for fulfilling all labor requirements. Members receive benefits beyond those required by law: production incentives, bonuses, training, educational assistance, housing loans, and emergency assistance, among other benefits. The cooperatives have obtained ISO 9001:2000 certification and have the highest production standards of all of Leonisa’s garment manufacturers. In addition to being the main source of employment in their locations, the cooperatives offer the community important social services through artistic, cultural, sports, and recreational activities that take place on their premises. Facility maintenance, the quality and efficiency of the work carried out there, the care for the environment, and the respect for the social milieu all reflect the strong sense of ownership that the members have developed.

The other garment manufacturers also comply with Leonisa’s requirements regarding environmental issues, safety, health, job security, and quality. In addition, Leonisa offers them training.

With the experience gained through this operation, in the future the Corporation would be able to consider providing financing to this supply chain.