El Salvador: Textile Industry Lose Competitiveness

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.

Friday, March 24, 2017

José Antonio Escobar, president of the Chamber of the Textile Industry, Clothing and Free Zones of El Salvador (Camtex) told Elsalvador.com 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'."

See also: "Textiles and Supplies Market in Central America"

"... According to Escobar there are two more maquilas with a determined vision to move their operations from El Salvador to another country in the region. One of those looking to migrate, he said, generates 1,800 jobs and produces sportswear brands and is already looking for new horizons in Honduras or Nicaragua.  There is also another specializing in the manufacture of underwear for ladies and gentlemen, with one thousand employees, which is considering closing its operations."

"... In the view of the representative of Camtex, the exodus of investment in the country is related to the loss of competitiveness. In the maquila sector, for example, sending a container to Puerto Cortes in Honduras costs between $800 and $1,000 for the freight of a commodity that will take six days to reach its destination."

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Textile sector: Production Becomes More Expensive in El Salvador

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Textile Manufacturer to Suspend 3,000 Workers in El Salvador

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The chairman of the Salvadoran Chamber of Textiles and Apparel reported to La Prensa Grafica that the decline in operations is due to "Fruit of the Loom clients being overstocked with product and adjusting inventories.”