Koreans Invest in $28 Million Plant in Nicaragua

The firm Hansae and a local partner will build new facilities for producing fabric in Niquinohomo, south of Managua, with capacity for 7,000 jobs.

Tuesday, March 13, 2012

A local company and the Korean textile firm, Hansae, will build on a total area of 70,000 m2 a new facility for a textile factory, which represents the extension of the Asian firm's investments in Nicaragua, said the president of Zona Franca SA Niquinohomo, Mario Zelaya.

The 28 hectare plot on which the future facilities will stand is in the town of Niquinohomo, 45km south of Managua. Zelaya revealed to Elnuevodiario.com.ni that his company will provide capital of $16 million for infrastructure, while Hansae, the owner company, will spend $12 million on the equipping the factory: purchasing machinery, transformers, electrical, sheet industrial and textile manufacturing equipment. In total, the investment is about $28 million and it is expected that 7,000 people will be employed, being recruited from the Niquinohomo area and surrounding towns.

The executive director of the Nicaraguan Association of Textile and Apparel Industry, Anitec, Dean Garcia, welcomed the new investment and recalled that Hansae is one of the oldest companies in the country. He said that before 2008, ie prior to the external economic crisis, it was one of the largest Korean consortia that gave employment to some 8,000 Nicaraguans.

Hansae already has another industrial park in Nandasmo in an area of 11 thousand square meters. This currently generates 1,000 jobs.



More on this topic

Export from Free Zones to Grow in 2018

January 2018

After having recorded a slight fall in 2017, companies in the free trade zone regime of Nicaragua plan to achieve a 5% growth in their exports this year.

One of the engines of growth that is expected to be achieved in 2018 is investments and reinvestments on the part of existing companies that are anticipated for this year. According to free zone entrepreneurs, between $300 million and $400 million could be invested.

More Investment in Textile Industry in Nicaragua

February 2013

Hansae, a textile company founded on South Korean capital, will later this month open the new "Gilberto Cuadra" industrial park, investing $12 million in equipment.

According to Joseph Adam Aguerri, president of the Superior Council of Private Enterprise (COSEP), the company will begin its work in late February in Niquinohomo, Masaya, generating initially one thousand jobs, however it is expected that in the next 90 days the number will rise to 3000.

Textile Company to Invest $25 Million in Nicaragua

October 2011

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.

Nicaraguan Textile Company Invests $3 Million

September 2010

Istmo Textil Nicaragua has launched a new textile manufacturing facility where it expects to employ 2,500 people.

The investment means that the company, backed by Korean capital, will look to achieve exports worth $120 million in 2010 and will employ a total of 5,000 workers.

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