By September 2011, exports of Nicaraguan textiles and clothing had reached $1007 million, 37% more than in the same period in 2010.
The growth rate of exports from Nicaraguan free zones engaged in the textile industry is still by far the highest in Central America.
The lastest report from the Nicaraguan Association of the Textile and Apparel Industry (Anitec), indicated that while this sector had grown 37% in Nicaragua, the rate was 17.4% in Guatemala, 13.5% in Honduras and 9.9% in El Salvador, while Costa Rica registered a decrease of -2.7%.
Korean owned SAE International has announced it plans to close one its five factories in Guatemala due to a mix of poor sales to the USA and high Guatemalan labor costs.
The country's Economy Minister, Luis Velázquez, announced the closure of the plant saying that the company will be opening a new factory in Haiti where it will look to hire 20,000 people.
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.
The president of the Nicaraguan Chamber of Construction, CNC, Mario Zelaya, told Elnuevodiario.com.ni, "The project will start with 30 million square feet first and then with the other 30 thousand in 2013. It will involve a total investment of $25 million. The first phase will involve $15 million and the second $10 million. The contract has already been signed."
Cupid Nicaragua, the production company specializing in women's intimate apparel and sportswear in general, has announced the construction of three new industrial buildings.
From a press release from ProNicaragua:
Cupid Nicaragua, an American company specialized in the manufacture of intimate apparel for women and sports apparel in general has announced that it is currently investing up to $ 24 million in expanding its operations in Nicaragua through the construction of three new industrial buildings. Located in the Parque Industrial Las Palmeras, Carazo, the new facility will have a total area of 30,000 square meters and will employ approximately 2,700 people.
Layoffs in the textile industry have been announced after projections of a 10% decline in its exports.
The industry is feeling the impact of the economic recession with a decline in orders from its main market, the U.S., said the president of the Honduran Maquila Association, Daniel Facussé.
An article in Proceso.hn reports that, "according to Facussé, several assembly plants have been forced to make redundancies and others are calling for discontinuations.
The high cost of labor and other input materials has forced some companies to close operations.
Contrary to the performance of other countries in the region, the Panamanian textile industry has shown a significant decline in recent years compared to the positive performance of the eighties.
At that time it exported more than $80 million worth in textiles every year, but now barely manages one million dollars worth.
While some clothing manufacturers are leaving the country, Gildan has decided to expand its operations with a new plant.
The new plant in which the textile company Gildan will invest more than $6 million will be ready in 12 months, and will have the capacity to produce 1.5 million kilos of fabric per week, employing 1500 workers.
The decision to extend the program reflects the confidence the company has in the country, which contrasts with other companies in the industry who have chosen to settle in other markets, driven by the decline in competitiveness and increased production and labor costs .
The Chamber of the Textiles, Clothing and Free Zones has presented a new proposal for the sector.
In 2010 the chamber had proposed a change in working hours from the 3.5 x 3.5 scheme, which means that employees work three and a half days and then rest for the same period of time, to change to working eight to twelve hours daily. This proposal has not been approved by the Ministry of Labour.
The textile company closed its 4 plants in Alabama, USA, and will transfer operations to its facilities in Rio Nance, Honduras.
The transition will involve the dismissal of about 300 workers in the United States, to be carried out in April of this year. The company expects to increase production up to 65 million dozens of socks in their two plants in Honduras.
The textile industry is developing a project that would allow bio-generation and save 30% on electricity.
Jesus Canahuati, director of the Honduran Manufacturers Association, explained that steam boilers will be installed in textile plants and that in a first stage they expect to generate 70 megawatts.
The measure seeks to combat the rising cost of electricity, a determining factor in the cost structure of the industry.
During the course of the year, the U.S. textile company will restart operations in the country.
The start-up would initially create 700 new jobs.
"The secretary of the National Free Zone Commission (CNZF), Alvaro Baltodano, and executive director of the Nicaraguan Association of Textiles and Apparel (Anitec), Dean Garcia, confirmed to the press that the reopening of the company is underway and will become official in the coming weeks,” according to an article at Laprensa.com.ni.
The Investment Promotion Agency announced for early next year the arrival of a textile and plastic companies.
Without going into details, Mariano Olazabal, director of Proesa, said the textile company would invest about $ 12 million and the plastic company would make an investment of about $ 25 million.
"Those are the two most important investments expected in the coming months, although there are also expansions expected in some of the companies already operating in the country," writes Laprensagrafica.com.
The company begins its operations in Central America by opening its manufacturing plant.
The factory will employ about 175 people in production and processing of multi-filament polyester, nylon textured yarns and related raw materials.
"Industry sources indicated that the manufacturing plant, Unifi Central America Ltd., will have eight texturing and 27 winding machines increasing the company´s capacity in the hemisphere," writes José Luis Henríquez on his article in Elsalvador.com.
Cimer announced it will close its Levi´s jeans and Dockers production plant operating in Costa Rica.
Centro Industrial Manufacturero El Roble (Cimer), said in a press release that the closing shall occur gradually through January 2011 and that 230 employees will be relocated to other industrial enterprises in the area of Cartago.
According elfinancierocr.com "Cimer will now import and sell the finished product."