New US textile investments, sourcing commitments for Central America

Columbia Sportswear Company has committed to purchase up to $200 million in products, which will create more than 6,900 jobs in the region over the next five years, in an industry where these jobs are primarily held by women, the White House said in a factsheet.

Nextil has committed to invest $40 million in two new production facilities in Guatemala to produce garments and elastic fabrics for the shapewear and sportswear markets. The facilities are estimated to create over 1,300 direct jobs and 3,000 indirect jobs.

Protela-Colombia has committed to invest $45 million in the construction of a vertically integrated textile manufacturing facility in Guatemala to supply fabric for garment manufacturers in Central America, which is expected to directly employ 400.

“We sincerely appreciate the administration’s commitment to this critical manufacturing sector that has contributed to the backbone of economic development in Central America and the United States. And we look forward to working with our retail and brand partners to continue to expand our vital manufacturing sector,” Glas said in a statement.

Over the last year, substantial investments have been flowing into Central America, predicated on the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the co-production chain that facilitates $15.1 billion in two-way textile and apparel trade and supports more than one million workers in the United States and the region, NCTO said.

“We saw apparel imports largely containing US textile inputs from the CAFTA-DR region jump 24 per cent, according to the latest government trade data, and we have seen well over $1 billion in investments in the region,” Glas added.

Fibre2Fashion News Desk (DS)