The recent opening of NEXTIL Group in Guatemala represents a key milestone for the apparel and textile industry, the country’s main export sector. With an investment of US$40 million, the Spanish company has launched a 12,000-square-meter production plant in Fraijanes, which not only diversifies the textile offer, but also strengthens Guatemala’s competitiveness in the international market. This operation also aligns with the growing trend of nearshoring in Latin America, a movement that is gaining traction in the wake of the COVID-19 pandemic and disruptions in global supply chains.
Product Innovation and Diversification
NEXTIL specializes in the production of stretch knit fabrics and garments, and is a benchmark for brands around the world in the production of intimate apparel, swimwear, sportswear and medical fabrics. With an estimated production capacity of 10 million yards per year, the company projects exports worth US$110 million per year. This diversification of supply is crucial to respond to growing demand from international markets, particularly the United States, where consumers are looking for innovative and sustainable products.
Commitment to sustainability is also central to the operation of NEXTIL Elastic Fábricas’ plant in Guatemala. The factory has been equipped with state-of-the-art technology, including an advanced water treatment system that minimizes its environmental impact.
Job Creation and Socioeconomic Development
The installation of NEXTIL in Guatemala has a direct impact on employment generation. It is estimated that, in its initial phase, the plant will create more than 100 direct jobs. These new jobs will have a multiplier effect on the local economy and strengthen the socioeconomic fabric of the region. This boost in job creation comes at a crucial time for Guatemala, where the unemployment rate has been a persistent challenge.
Alejandro Ceballos, vice president of the Apparel and Textile Industry Association -VESTEX-, noted that NEXTIL’s investment reinforces confidence in Guatemala as an attractive investment destination. The arrival of the Spanish company not only supports economic growth, but also consolidates Guatemala as a strategic partner in the CAFTA region, a key area for textile exports.
VESTEX has assumed a leading role in attracting foreign investment for the apparel and textile industry, providing comprehensive support to investors in all phases of their projects, from prospecting to installation and expansion in Guatemala. This approach aims to facilitate the entry of new companies into the Guatemalan market, ensuring that companies such as Nextil can learn about the advantages of the cluster, understand its dynamics, and thus operate efficiently and smoothly in the country.
A Strategic Decision
NEXTIL’s establishment in Guatemala is the result of careful planning that began in 2021. During that time, the company evaluated multiple destinations in the region before selecting Guatemala as the ideal location for expansion. Manuel Martos, representative of NEXTIL Group, emphasized at the time that the country “brings together all the things we were looking for: proximity which implies reliability, stability and other factors that were key to the decision to invest.” This decision was made after evaluating business conditions, infrastructure and government support, factors that weighed in favor of Guatemala.
This investment also represents a significant step toward the future of the textile industry in Guatemala. The collaboration between foreign companies, the Guatemalan private sector, and the government creates a favorable environment for the textile industry to continue to expand and diversify.
NEXTIL’s plant is a clear example of how well-planned investments can transform an industry, generate employment, and lead a region toward a more sustainable and prosperous future. The company has shown a strong commitment to quality and innovation, factors that will be key to consolidating Guatemala as a leader in textile production worldwide.
Are you interested in investing in the apparel and textile industry in Guatemala? Contact our specialists kdeleon@vestex.com.gt or amansilla@vestex.com.gt
Information retrieved from:
Manuel Martos (Nextil): “With the factory in Guatemala we will grow in sports and health”.
- “We will make a center in Galicia for Greendyes with 30 million investment”.
- “We have applied for patents on specialty fabrics that no one has ever gotten before.”
