Nextil Expands Operations in Guatemala, Fueling Regional Textile Growth and Employment

Nextil is accelerating its presence in Guatemala with strategic investments and phased production expansions at its plant, Nextil Elastic Fabrics, S.A. Since its inauguration in October 2024, the company has steadily increased its operations, positioning Guatemala as a growing hub for premium textile manufacturing despite uncertainties caused by U.S. tariffs.

Multi-Million Dollar Contract Secures Long-Term Operations

Recently, Nextil signed a five-year contract worth US$175 million with Maxum International Group, marking the largest agreement in the company’s history. The contract will be executed from its Guatemalan plant, with initial production valued at US$15 million in the first year and projected annual sales of US$40 million from the second year onwards. Maxum International Group manages over US$2 billion in retail transactions in the U.S., serving clients such as Costco, BJ’s, Sam’s, Home Depot, Walmart, and more.

Phased Investment and Employment Growth

Nextil’s initial investment in Guatemala, announced in 2021, has been executed in stages. The first phase, which launched the plant in 2024, involved US$23 million, while an additional US$12.5 million is currently being invested in the second phase, expected to conclude in January 2026.

Currently, the plant generates 55 jobs, with projections to reach 100 by the end of 2025. A future expansion in the garment production area is expected to create approximately 350 new positions initially, with plans to scale further as demand grows. Renato Lira, General Director of Nextil Elastic Fabrics, emphasized that all profits generated in Guatemala will be reinvested to expand the facility in line with market needs.

Product Portfolio and Regional Impact

Nextil specializes in premium elastic fabrics used in shapewear, medical textiles (including gloves and support garments for patients with burns or rheumatism), luxury sportswear, and technical apparel. This complements Guatemala’s existing textile and apparel cluster, reinforcing the country’s position in the regional market.

Guatemala’s Textile and Apparel Sector Amid U.S. Tariffs

The textile and apparel industry remains one of Guatemala’s largest exporters, historically achieving annual sales of around US$2 billion, primarily to the U.S. market. In 2022, the sector reached a record US$2.258 billion in exports, growing 16.8% post-pandemic. However, the imposition of a 10% tariff on Guatemalan textiles by the U.S. since April has created uncertainty among buyers, slightly slowing growth projections for 2025 to 1-2%, with potential negative outcomes of -3% to -5%.

Carlos Arias, president of the Guatemalan Textile and Apparel Association (Vestex), explained that while exports of garments have decreased by 2.7% as of July 2025, exports of textile materials grew 16.7%, reflecting a modest overall growth of 0.45%. Nonetheless, shifting production to other countries and a reduced use of machines could lead to a potential loss of 19,000 jobs if trends continue.

Strategic Opportunity for Guatemala

Despite sector challenges, Nextil’s investment underscores Guatemala’s potential as a competitive textile manufacturing hub for Latin America. The phased expansion approach and major international contracts demonstrate confidence in the country’s workforce, infrastructure, and regional trade advantages under CAFTA agreements.