Brazilian footwear producer Calcados Dilly SA has become the second company this week to close a plant in Brazil's southernmost state of Rio Grande do Sul.

Calcados Dilly, which is based in the north eastern state of Ceara, is to shut its sport shoe factory in Mato Leitao with the loss of 300 jobs.

Nearly all of the plant's output is exported to Argentina, which recently impeded imports from Brazil.

Earlier this week footwear giant Azaleia closed its unit in Sebastiao do Cai, laying off 800 workers.