Madrid - Nextil Group, owner of the stretch fabric manufacturer Dogi and knitwear specialist Treiss, has reported that its new fabric production plant in Guatemala will be equipped with both warp and weft knitting machines while it will also carry out its own dyeing and finishing processes on the same site.

"Our ambitious project in Guatemala continues, and the works are advancing quite quickly," the company said. "The opening of the factories will allow us to produce fabrics with a high percentage of elastane, from 18 to 50 per cent, with warp knitting and circular machines. In addition, we can also carry out the dyeing and finishing process of the fabrics."

Announced in 2021, the 25,000 m2 plant is expected to come on stream in the first quarter of 2023.

The facility is strategically located 30 minutes from the city of Guatemala, with easy access to two oceans (Atlantic and Pacific) and the Pan- American road, providing ideal international connections for the company's export market.

The geographical location in a country with a long tradition in textiles will give Nextil Group access to the mass production market in competition with Asian suppliers, allowing it to obtain a return on items that are currently in high demand while securing maximum efficiency in terms of logistics and distribution, all with preferential tariff arrangements.

With an overall investment of €40 million, the new plant will have 350 local employees on its payroll with this number expected to grow as the pace of production steps up. The plant will also train Guatemala university students who wish to go into the textile sector.

According to Nextil, the facility will adhere to a high level of 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.

The plant also aims to 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 arranged in Guatemala. The country has EUR1 certification, by virtue of which it can preserve the origin of goods from both Europe and the United States, while also securing preferential treatment on entry to those markets. “This was unquestionably one of the key factors when choosing the location for our new production plant,” said Manuel Martos, the general manager of Nextil, adding that the group will maintain its existing production plants in Spain and the USA for value-added production, as well as for the development of new products. “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.”

In keeping with its environmental commitment policy, the new site is being constructed to maintain a low carbon footprint and incorporate cutting-edge machinery and advanced systems in energy saving, rainwater treatment and reuse of resources, among others.

The basic principle of the Greendyes dyeing method will also be applied at this new plant. The dyeing process patented by Nextil features low water consumption, no toxic products and processing at ambient temperatures, thereby considerably reducing energy consumption.

Nextil Group is one of Spain's leading industrial groups. Founded in 1954 in El Masnou (Barcelona), it has four factories of its own in Spain, Portugal and the United States. With a commercial presence in the five continents, Nextil manufactures fabrics and garments for the world's leading fashion companies in the fashion, swimwear, athletic and lingerie sectors through customised and tailored system that vertically integrates all phases of the production process, from the design of the fabric to the manufacture of the garment.