Prato factory deaths highlight Chinese takeover

The city of Prato, one of Italy's most important textile hubs, has arrested five individuals that are linked to the factory fire that killed seven workers last December. After a three month investigation, the arrests comprise three Chinese factory operators and two Italian. All are charged with manslaughter and

exploiting illegal labour.

Prosecutor Piero Tony said in the arrest warrant that workers in the factory had to work 14-16-hour days without days off, sleeping on “wooden and plasterboard mezzanines, without the minimum in terms of fire prevention or alarm systems”.

China taking over Italy's manufacturing crown

The fire and deaths have highlighted the changing times of Prato, once considered the jewel of the Tuscan manufacturing crown. As the textile industry has grown, so has the competition, and the demand for 'fast fashion' has seen a surge of Chinese factories settle in amongst the Italians, who's prices are more competitive, even if the quality is not the same.

Many Italian operators are unable or steadfastly refuse to compete in prices, and the discontent from losing orders to cheaper production units on your own territory has not gone without the locals feeling discontent.

The Chinese view the rapidly expanding fast-fashion market in Prato, a satellite town of fashionable Florence, as an opportunity for Italian companies to exploit the desirability of the "Made in Italy" brand in new ways.

According to Marco Landi, president of the Tuscany branch of trade body CNA, which represents small and medium-sized firms, the remaining 3,000 small-scale Italian enterprises in Prato's industrial district face unprecedented upheaval.

"As a result of backdoor globalisation, Italian businesses are being forced to restructure," he says.

"At the moment there are approximately 4,000 Chinese-run clothing factories in Prato. These new production dynamics are compelling the remaining Italian businesses based there to rethink their markets."

Image: Made in Italy by Chinese