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In order to accommodate the company's initiatives for backward vertical integration, Zara purchased 20 factories that were highly automated with machines that were specialized for specific garments. 18 of these factories were located near headquarters, which minimized transportation costs. Zara provided financial support, technology, logistics and most, if not all business to the 450 workshops it sent cut garments to for sewing purposes. Legally, these businesses were not Zara's subsidiaries, but considering how much it invested into them, it practically did own them. The company owned a 400,000 m? distribution centre in Arteixo, smaller centres in South America and eventually had to purchase a new facility of 120,000 m? to provide for its expansion...
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