Nextil Group to Move Two Factories to Guatemala

In order to reduce costs and take advantage of the country's geographical location, executives of the clothing manufacturing company confirmed that they will move two plants currently located in the US and Spain to Guatemala.

Monday, June 21, 2021

The announcement of the transfer of the factories' operations was made by Manuel Martos, representative of Nextil Group, in the context of the forum "Strengthening Regional Value Chains for Economic and Social Reactivation", organized by the Inter-American Development Bank (IDB) and the Government of Guatemala.

According to local businessmen, the foreign business group has already started with the procedures to transfer the operation of the two factories to the Central American country; however, the installation process could take about four years.

You may be interested in "Geomarketing, Successful Investments and Case Studies"

Alejandro Ceballos, president of the Apparel and Textile Industry Association (Vestex), told that "... the company will move both operations to a plant that will be located, preliminarily, in the municipality of San Jose Pinula. 'The new investments are positive for the industry and strengthen it'."

Ceballos added that "... the company was bought by a Spanish investment fund who manage it and manufacture fine fabrics that are not found in Guatemala, 'they are moving the factories from Barcelona and the United States because the costs of operating in those countries are high'."

See "$250 Million in Investments in Industrial Construction"

Another attractive point for companies is that dispatch times from Guatemala are three weeks and not six, which is what it takes to move from China, said the head.

Do you know that we are now part of something bigger?
Learn about PREDIK Data-Driven, our new global brand.

Do you need Business Intelligence solutions for the industrial sector? Contact Us

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

Clothing: Company Closes Operations in Nicaragua

April 2021

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.

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.

Textile Industry: $20 Million Investment Announced

November 2020

In Guatemala, a Korean business group plans to invest in the start-up of a fabric factory in the municipality of Villa Nueva.

The fabrics that will be manufactured in the new industrial plant will be specialized and will supply other factories in the region, informed authorities and businessmen of the sector.

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'."

Hanesbrands Expands in El Salvador

June 2009

The multinational apparel company has invested $20 million in the expansion of two factories and a new water treatment plant.

In the last three years, the casual and sport clothing company, Hanesbrands, has invested $200 million, making El Salvador one of the 5 biggest operations in the world.