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.

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Alejandro Ceballos, president of the Apparel and Textile Industry Association (Vestex), told Prensalibre.com 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'."

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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.

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