Korean Businesspeople Abandon Guatemala

The impact of the economic crisis in the United States has had on the textile industry has forced 15 Korean businesses to shut down operations in the country.

Monday, June 29, 2009

Currently there are 158 factories in the country, of which 92 are Korean, 55 Guatemalan, 10 American, and 1 French, according to data from the Clothing and Textile Commission (Vestex).

Reporter Louisa Reynolds writes for Elperiodico.com.gt: “Between 2005 and 2008 127 companies have closed down and clothing exports have been reduced from $447 million in the first four months of 2008 to $305 million in the same period in 2009, for a contraction of 31.8%.”



More on this topic

Textile Sector Begins 2019 Upwards

April 2019

During the first two months of the year, exports of the Guatemalan textile sector registered a 4% year-on-year increase, which is explained by demand from U.S. companies.

According to the most recent figures from the Bank of Guatemala, between the first two months of 2018 and the same period in 2019, overall exports fell from $1.808 million to $1.751 million.

Guatemala: Call to Boycot Income Tax

January 2016

With the hope of getting exemptions reinstated, maquila sector union representatives are calling on a thousand companies to avoid the payment of the income tax until the exemptions are reactivated.

The Superintendency of Tax Administration (SAT) confirmed in early January that both administrators and users of free zones and maquilas (by decree 65-89 and 29-89 respectively) must pay income tax (ISR) for the fiscal year 2016.

New Holland Apparel expands in Nicaragua

October 2010

The apparel company expanded its facilities located in Zona Franca, Astro Nicaragua.

The company, which began operating in the country in 2006, currently employs 1,600 people.

Robert Neff, CEO of New Holland Apparel of Nicaragua, told El Nuevo Diario that "next year we will produce sportswear for a new client, Adidas / Reedbok."

"Fibro" Textile Company Closes in Guatemala

September 2009

The factory closed its doors on August 31, due to lack of orders from the United States.

110 workers lost their jobs with the closure of the plant, located on the 36th kilometers of the Interamerican Highway, in Sacatepéquez.

Vestex, the Guatemalan Textile and Apparel Commission, has reported the closure of 23 maquilas so far in 2009.

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