Clothing: Company Closes Operations in Nicaragua

New Holland, a company engaged in the manufacture of clothing and which has been operating in the country for 15 years under the free trade zone regime, announced that it will close operations in the last days of May.

Wednesday, April 14, 2021

The company's decision to leave Nicaragua is due to the fact that the country does not have the adequate technological machinery to compete with the garments it manufactures for the Under Amour, Nike and Adidas brands.

You may be interested in "Clothing: Interest in Uniforms Downwards."

Pedro Ortega, secretary of the Free Trade Zone Workers Union Confederation (CST-ZF), told that "... this company has never invested in machinery, since the current ones have been in use for more than 20 years, the equipment has already reached its useful life, they are obsolete."

According to the workers' leader, the company plans to close operations in Nicaragua and Honduras. If this plan is carried out, some 5,700 people would lose their jobs in both countries.

Ortega added that "... the company's production in Nicaragua will be transferred to El Salvador. The company decided to establish itself in another country because there is machinery there with new technology."

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

Children's Clothing: Trends in Central America

March 2021

During the first weeks of 2021, interest in children's clothing measured by online searches and mentions in conversations in the digital environment, increased in Panama and Guatemala, and decreased in the case of the other markets in the region.

Through a system that monitors in real time changes in consumer interests and preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, services, sectors and markets operating in the region.

Fabrics: Company Closes in Nicaragua

January 2020

The American Aalfs Uno, which operated in the municipality of Sébaco, in Matagalpa, closed its operations in the country due to a reduction in the number of contracts.

The closure of the company was made official by directors of the Nicaraguan Association of Textiles and Apparel Industry (Anitec), who say it is the first company in the U.S. capital sector to close in the country.

El Salvador: Textile Industry Lose Competitiveness

March 2017

The Salvadoran union has stated that excessive bureaucracy and high production costs are the main factors that could be encouraging some textile mills to reduce operations in the country.

José Antonio Escobar, president of the Chamber of the Textile Industry, Clothing and Free Zones of El Salvador (Camtex) told that one of the companies that has shut down part of its operations, to transfer them to another country, is Fruit of the Loom. Escobar said   "...'In the plant owned by Fruit of the Loom in the industrial park American Park, where a thousand people work, the company will make a reduction of about 850 positions'."

Woven Fabric Production in Nicaragua

November 2012

Millknit Industries will begin operations in early 2013, producing fabrics for clothing companies established in the free zones.

Following the closure of Core Denim in 2009, Nicaragua has had no cloth production, which is a disadvantage for the clothing sector, which has to import its raw materials.