The record price achieved for cotton would increase operating costs for enterprises in 2011.
The contract for December delivery closed at $ 1.2463 a pound on Friday, versus $ 1.1971 the previous week, according to Dean Garcia, director of the Nicaraguan Association of Textile Industry. In the last three months the price has increased by 56%.
"For Nicaragua's textile sector it could mean 'stagnation' of sales, so we should be analyzing strategies to confront the situation," Laprensa.com.ni reported.
Exports of textiles to August rose 20% relative to the same period of 2009.
The director of the Honduran manufacturing industry association AHM, Guillermo Matamoros, commented that in addition to the return of 13,000 jobs in the textile sector so far this year it is hoped that by the end of the year 20,000 jobs will have been created.
Matamoros acknowledged to Laprensa.hn that, "it is too early to tell how the year will end but if current trends continue the industry will almost recover from the effects of the 2009 crisis when exports fell by $500 million".
In the first six months of the year, the Honduran textile industry has recovered 11.000 of the 30.000 jobs it lost since early 2008.
Daniel Facussé, president of the Honduran Maquila Association, explained that some 250.000 square meters were left unused after several companies closed operations. He remarked that the industry has already recovered 30%.
Textile and apparel production is threatened by the lack of threads, cotton and canvas.
Since the beginning of the year, the textile industry has experienced a shortage of raw materials. The situation worsened in the last month, causing delays for exporting and reduced supply for the domestic market.
Prensalibre.com published comments by several textile businessmen, who commented that prices are going up between 5% and 15% due to shortages in raw materials.
A pilot project will be developed in the south of the country, in the city of Choluteca, and will be extended nationally afterwards.
Daniel Facussé, president of the Honduran Maquila Association, said that their plan incorporates new activities such as renewable energy generation through biomass.
"Facussé didn’t specify the number of jobs that could be generated, as they are still working on the plan.
15.000 jobs could be created in 2010, thanks to strong investment in the textile and apparel industry in Honduras.
The figure was revealed by Jesús Canahuati, president of the Honduran Maquila Association.
Canahuati told Latribuna.hn that “All the companies will rehire personnel, this is good, as it creates employment over already installed productive capacity”.
The Honduran Maquila Association asked the European Union to be more flexible when negotiating the Association Agreement with Central America.
Guillermo Matamoros, executive director of the Association, argued that EU’s rigid position “is not in line with its humanist discourse”.
Matamoros explained that Honduras’ textile industry asked for market access for “millions of dozens of apparel units; we hope it is accepted, so far the Europeans have been rigid regarding this topic”.
1,000 new jobs will be created with a new synthetic thread mill.
The announcement was made by Guillermo Matamoros, head of the Honduran Maquila Association.
He also commented that “they are negotiating the arrival of other type of companies, specially call centers, which could create between 25.000 and 40.000 jobs over the next three years, as the North American market recovers”.
The textile and apparel “maquila” will be located in the “Zip Calpules” field, in San Pedro Sula.
María de los Angeles Posso, from the Labor Ministry, explained the company has already started recruiting personnel.
“Daniel Facussé, president of the Honduran Maquila Association, expects textile exports to increase 5% in the first half of the year, resulting in more job creation”, reported Laprensa.hn.
Textile company Modtex International will start operating in the Free Zone of Port Cortés soon.
In the short term, the company expects to create 400 jobs.
"Other companies already operating at this industrial park include apparel companies Garmax and Land Apparel, chemical and fertilizer producer Fenorsa, and corn derivatives manufacturer Graneles", reported Laprensa.hn.
The Maquila Association reported they are negotiating $150 million investments for 2010.
Due to the international crisis and the domestic political crisis, the country will only see investment for $30 million in 2010, explained Daniel Facussé, president of the Maquila Association (AHM).
Further comments by Facussé were printed in Latribuna.hn: "We are focused on bringing more investment and maintaining jobs.
Industry spokespersons report 4.000 jobs recovered in the last few months.
The industry currently employs 110.000 people, said Gullermo Matamoros, representative of the Honduran Maquila Association.
According to Matamoros, "... some symptoms indicate that the U.S. economy's 'free fall' has stopped, a positive sign for increasing exports to this country", reported Tiempo.hn.