It has been announced that the company Supertex plans to invest $8 million in setting up a textile production factory in the country, which will start operating in July 2017.
The Investment Promotion Agency of Nicaragua (ProNicaragua) announced that the textile company Supertex, of Colombian origin, will begin operations in July.
Between January and October foreign sales in the sector amounted to $1.281 billion, 5.9% more than the $1.21 billion generated in the same period in 2013.
From a statement issued by the Nicaraguan agency for promoting and exporting (PRO-NICARAGUA):
Nicaragua is the second country in the framework of DR-CAFTA with the highest percentage of exports of textiles in 2014.
Nicaragua's textile companies have started exporting to Turkey and Finland, as an "exploration" before the agreement with the EU comes into force.
Since December, textile companies established in the free zones in Nicaragua have been exporting shirts and pants to Turkey and Finland, as a way to explore the regional market before the Central American Association Agreement with the EU is implemented, according to a director of the business association in the industry.
The country is planning two trade missions for next year to publicize its advantages as an investment destination.
The executive director of the Investment and Promotion Agency ProNicaragua, Javier Chamorro said that goal during the missions is to visit garment factories.
"The intention is to build on the brands and retailers who "are moving their production to Central America", due to increased production costs in China, which range from the question of salaries to the rising cost of transportation", explained an article in La Prensa.com.ni
The public-private trade mission to a trade fair entitled ‘Magic 2011’ has succeeded in getting U.S. interest in importing textiles and clothing from Nicaragua.
Over a hundred contacts with potential buyers were made in the meeting which will be exploited with a "marketing effort," said Javier Chamorro, Executive Director of ProNicaragua.
The private sector, together with the government, is developing a marketing strategy in order to promote the Nicaraguan textile industry abroad.
Nicaragua is benefitting from a cost advantage in most product categories, both regionally and globally.
A study entitled "Comparison of Competitiveness of the Garment Industry of Nicaragua", has been prepared by O'Rourke Group Partners, and supported by the Enterprise and Employment Programme of the United States Agency for International Development (USAID) in conjunction with ProNicaragua, the official investment promoter.
The revival in cotton growing has been confirmed with financing by a Brazilian investment group.
Aguerri Adam Joseph, president of COSEP confirmed that cotton production this year will be reactivated with the support of Brazilian investors, attracted by the office of ProNicaragua, an organization that is dedicated to the promotion of foreign investment.
The arrival of new textile plants, the expansion of three plants and the reopening of another were announced by the textile sector.
With an investment of $ 50 to $ 60 million, the National Commission of Free Zones (CNZF) is negotiating the installation of a new textile factory with a foreign capital group.
Dean García Foster, executive director of the Nicaraguan Association of Textiles and Apparel (Anitec), said three textile companies have confirmed their expansion plans, which involves an estimated investment of $ 20 million.