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Industry Talk

Nextil invests EUR 40 million in Guatemala

Nextil commits to sustainability and efficiency with a new plant in the country’s capital, Guatemala City.

15th July 2021

Knitting Industry
 |  Madrid, Spain

Knitted Outerwear

Nextil Group, one Europe’s largest textile groups, is to open a new fabric production plant in Guatemala, a country with a long tradition in textiles. The plant, with an area of 25,000 square metres, is expected to come on stream in the first quarter of 2023.

The new plant will be set in a strategic location just 30 minutes from the city of Guatemala, with easy access to two oceans (Atlantic and Pacific) and the Pan-American road, providing great connections with practically all continents. Its geographical location will give Nextil Group access to the mass production market in competition with Asian suppliers, enabling it to obtain a return on items that are currently deficit, securing maximum efficiency in logistics and distribution, with preferential tariff arrangements.

With an overall investment of EUR 40 million, the new production plant will have 350 local employees on its payroll, which will grow as the pace of production steps up. The plant will also train Guatemala university students who wish to go into the textile sector. The Spanish group will keep welfare and social responsibility benefits on a par with production plants in the EU or USA, including a health clinic, company store with credits, monthly grocery bag and a fund for loans to employees.

Efficiency and sustainability

The industrial plant will optimise its cost structure in line with other plants in the group and will maintain the certifications of origin for its products, thanks to the agreements made by the Central American country. Guatemala has EUR1 certification, by virtue of which it can preserve the origin of goods from both Europe and the United States, in turn obtaining preferential treatment on entry to those markets. "This was unquestionably one of the key factors when choosing the location for our new production plant", commented Manuel Martos, Nextil’s General Manager.

Nextil Group will maintain its existing production plants in Spain and the USA for value-added specialties, for the development of new products and for local and commercial logistics. "We want to get into a market that is currently inaccessible for us due to the cost structure, while keeping our existing plants for value-added products and the development of new collections in Spain," added Martos.

In keeping with its policy of environmental commitment, Nextil’s new plant will implement a plan to maintain a low carbon footprint and incorporate cutting-edge machinery and advanced systems in energy saving, rainwater treatment and reuse of resources.

The Greendyes dyeing method will also be applied at the new plant – the patented dyeing process features low water consumption, no toxic products and execution at ambient temperature, thereby considerably reducing energy consumption.

Nextil makes both fabrics and garments. Its fabric manufacturing facilities include circular knitting machines (up to 44 gauge) and warp knitting machines that allow it to make all kinds of jacquard, mesh, rib, lurex, stripes, simplex and spacer fabrics. The company serves both external fabric buyers and clients from other Nextil Group divisions.

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