Team uniform and athletic apparel maker Holloway Sportswear Inc is to close three plants in Louisiana as it relocates production to Mexico, the Middle East and other foreign locations.

Holloway, based in Sidney, Ohio will shut down its jacket and outerwear operations in Olla, Many, and Ville Platte with the loss of 240 jobs. A Holloway leather and wool factory with 100 workers in Simmesport will remain open.

The Associated Press quotes Steve Graf, the company's Louisiana director of manufacturing, as blaming the closings on cheaper labour in foreign countries due to the North American Free Trade Agreement.

"It was strictly a business decision," Graf said. "These people are hard working, and they helped build Holloway, but unfortunately, due to NAFTA, we can't compete."