The textile sector claims that the high cost of electricity in the country has become a limiting factor to foreign investment.
The union of textile companies states that more foreign investment could reach the industry if the cost of electricity was not so high.According to Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry (Anitec),"... there could be benefits from the entry of textile companies and spinning mills setting up in Nicaragua and producing sufficient raw material for the industry that already exists in the country. "
A report by the Business Intelligence Unit at CentralAmericaData.com notes that in 2015 Central American countries imported $318 million worth of yarns, filaments and textiles, led by El Salvador with $157 million.
El Salvador was the main importer of synthetic filaments, strips and materials similar to synthetic textiles last year, according to data on the Textiles and Raw Materials Market compiled by the Business Intelligence Unit at CentralAmericaData.com.
A meeting is being convened for the textile and clothing industry on March 16 in El Salvador, where the overall situation in the sector will be discussed.
From a statement issued by Proesa:
El Salvador is preparing for the third edition of the Forum of Textiles and Apparel (FOROTEX) 2016, a space where high-level international speakers present trends and strategies for competing in international markets.
Its participation in the US market has dropped, but the unification of the cluster now encompasses the entire manufacturing process, generating exports worth $1.5 billion.
The integration of the production process, generating greater added value to all parts of the production chain of the textile industry, has enabled the industry to stay afloat and face off competition from producers such as Vietnam and other Southeast Asian countries.
The manufacturer of synthetic fabrics Pettenati plans to invest $13 million to increase its production capacity by 25%.
The textile company Pettenati has announced that it is completing the process of purchasing new equipment in order to increase its production capacity this year and meet growing demand which has been reported in recent years. This investment complements the recent expansion of its industrial plant located on the highway between San Salvador and Santa Ana.
80% of the volume exported by the Honduran maquila sector in the first half of 2014 corresponds to textiles, 15% to harnesses, and the remaining 5% to other goods.
A report by the Central Bank of Honduras (BCH) specifies that when comparing the figure for the first half of this year with the same period of 2013, "... A slight increase of $8.2 million is observed. "
On May 20th-22nd the XXIII edition of the Apparel Sourcing Show will be held with the presence of companies in the region and international buyers.
The international event will be held at the Grand Tikal Futura Hotel, where it is expected that 500 exhibiting companies will take part along with five thousand potential buyers from various textile countries in Latin America and elsewhere.
In 2011 the country imported $251 million worth of clothes, an increase of 12% compared to the previous year.
Examples of some of the data in the report:
Imports of men and childrens shirts increased by 46% between 2010 and 2011, going from $18.1 million to $26.5 million imported in 2011.
Meanwhile, imports of suits, ensembles, jackets (coats), dresses, skirts, skirt-shorts,trousers, breeches, and shorts, and shorts for women and girls increased by 13% between 2010 and 2011, and represented the largest increase in monetary level, going from $66 million to $74.7 million imported in 2011.
The U.S. company Millknit Industries is to produce fabrics for the maquiladora industry, beginning operations in the first quarter of 2013.
Operating in the industrial park Las Mercedes, the textile company will begin operations between January and February 2013, informed the technical secretary of the National Commission of Free Zones (CNZF), Alvaro Baltodano.
The closure of another maquila center, due to low orders in the world market, means 500 people will be made unemployed.
Oscar Galeano, representing the Chamber of Commerce and Industry of Cortes (CCIC), lamented the closure of this maquila company in the previous week, due to the low level of purchase orders from abroad, reported Proceso Digital.
The South Korean textile company Hansae Nicaragua S.A will be investing between 2011 and 2013 in order to expand its industrial park situated in Masaya.
The works for expanding the industrial plant by 60,000 square foot will be carried out in two stages, with the first stage starting in December.
The president of the Nicaraguan Chamber of Construction, CNC, Mario Zelaya, told Elnuevodiario.com.ni, "The project will start with 30 million square feet first and then with the other 30 thousand in 2013. It will involve a total investment of $25 million. The first phase will involve $15 million and the second $10 million. The contract has already been signed."
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