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Central America and the Caribbean / Guatemala

Nextil to open €40m fabric factory in Guatemala

Spanish textile company Nextil plans to establish a new factory in Guatemala, creating 350 jobs.

Spain-based garment manufacturing group Nextil is set to open a new production facility in Guatemala. The company plans to invest €40m ($47.16m)  in the plant and will initially hire 350 local employees. The 25,000m2 factory is scheduled to open in early 2023.

The plant will be located 30 minutes outside of Guatemala City and benefits from access to the Atlantic and Pacific oceans and the Pan-American Highway. This location will give Nextil access to the mass production market in competition with Asian suppliers.

In a press release, the company noted the importance of Guatemala’s EUR1 certification in its investment decision. The certification preserves the origin of goods from both Europe and the US, allowing for special treatment when entering those markets. General manager Manuel Martos stated: “This was unquestionably one of the key factors when choosing the location for our new production plant.”

In addition, Nextil aims to maintain a low-carbon footprint at the new facility and plans to incorporate cutting-edge machinery and advanced systems in energy saving, rainwater treatment and reuse of resources, among others.

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Naomi Davies

Naomi Davies

FDI consultant

Naomi Davies is an FDI consultant at Investment Monitor, with expertise in location benchmarking and cross-border investment.