Modernization of the apparel and textile sector in Guatemala after an investment of USD 80 million in a new spinning plant
The apparel and textile sector is one of the most dynamic sectors in Guatemala’s economy and the one that accounts for the largest amount of exports for the nation, registering more than USD 1,934 million in 2021.
The supply chain represents one of the main sources of employment and Foreign Direct Investment (FDI). According to data from the Apparel and Textile Industry Association (VESTEX, for its acronym in Spanish), it generates 8.9% of the national Gross Domestic Product (GDP), being one of the most stable and competitive sectors in international trade.
As part of the optimal scenario and efforts to modernize the sector’s production and meet the needs of international markets effectively, the construction of a new spinning plant has recently been announced with an investment of USD 80 million.
The new electronic plant will operate with advanced technology and automated machinery with Industry 4.0 controls.
Grupo Imperial, one of Guatemala’s leading textile manufacturers, will oversee this investment, which is expected to strengthen the apparel and textile supply chain throughout Central America. This plant is the first of three phases of the project, which will require a total investment of USD 240 million and is expected to generate approximately 300 direct jobs.
The new plant will be located in Palín, Escuintla, and the investment will be made through MT Textil, S.A., enabling the country to continue supplying yarn and fabric to all of Central America, according to the Ministry of Economy officials.
The region is highly attractive for investment in this sector due to the benefits granted by the CAFTA-DR Free Trade Agreement, in addition to the efforts made by customs to facilitate and automate foreign trade processes.
María Fernanda Villagran
fernanda.villagran@garciabodan.com
Associate
García & Bodán
Guatemala