Shein is exploring plans to open a factory in Mexico as it looks to diversify its manufacturing out of China.
The launch of the factory is part of the fast fashion giant’s effort to localize production and cut short shipping time and distribution costs for customers in Latin America.
“Shein’s localization strategy allows us to shorten delivery times to customers while expanding product variety and supporting local economies,” the Chairman of Shein Latin America, Marcelo Claure, said in a statement.
The news comes just a month after Shein launched an eCommerce marketplace in Brazil, which enables third-party merchants to sell their clothing through the Shein app and website. The company also announced its plans to make a $150 million investment in the country to boost its manufacturing and export capabilities in the continent.
The company’s efforts to build manufacturing facilities in international markets follow continued criticism from governments in countries such as Brazil, India and the United States.
In the U.S., Shein was criticized in an April federal commissions report for using de mimis, a trade exemption enabling businesses to sidestep tariffs by shipping packages valued at less than $800 directly to buyers.
To top that off, two dozen U.S. Representatives from both sides of the aisle asked the Securities and Exchange Commission in May to put the kibosh on Shein’s IPO ambitions until it can prove that it is not using forced labor for making the clothes, according to Reuters.
Shein has so far denied these allegations and maintained its stance on not using forced labor.