Friday 19 August 2022

Coronavirus threatens Central America textile industry

Paying the bills

Latest

Costa Rica ranks 31st in the list of the strongest passports in the world

QCOSTARICA - Costa Rica ranks 31st on the 2022...

Costa Ricans buy less due to the impact of inflation: They look for cheaper food

QCOSTARICA - A study by the firm Kantar revealed...

Frontier Airlines announces two direct flights connecting Costa Rica with Atlanta

QCOSTARICA - The low-cost airline, Frontier, announced two new...

Are professional athletes still as admired as they once were?

The history of sports around Latin America in general,...

The lifting of the state of emergency due to covid-19 is in effect

QCOSTARICA - As of Wednesday, August 17, 2022, the...

At least 13 promises announced by President Chaves must pass through the Legislative Assembly

QCOSTARICA - Ruling by 'decree' may not allow President...

Plan to legalize the use of recreational marijuana in Costa Rica in the works

QCOSTARICA - The government will present a bill to...

Dollar Exchange

¢651.76 Buy

¢659.97 Sell

19 August 2022 - At The Banks - BCCR

Paying the bills

Share

In Central America, where 200 million pounds of yarn thread and fabric are imported monthly to produce apparel, manufacturers are facing US$300 million worth of feedstock delays, said Alejandro Ceballos, president of top trade lobby Vestex in Guatemala.

In this photo released by Xinhua News Agency, workers produce face masks in the workshop of a textile company in Jimo District of Qingdao in eastern China’s Shandong Province on Wednesday, Feb. 12, 2020. Qingdao Municipal Bureau of Industry and Infor

The coronavirus outbreak is causing supply-chain disruptions across Latin America, where factories exporting apparel to the U.S. are facing significant feedstock delays from China and scrambling to find alternative sources, WWD reports.

So far, some brands and sourcing partners consulted claimed merchandise deliveries are not facing delays. Now the factories are scrambling to find alternative supplies

- Advertisement -

“Chinese yarn factories are seeing dispatch delays and if they continue, we don’t have enough local production to make up for it,” said Ceballos, adding that of US$500 million of apparel exported monthly from the CAFTA-DR free-trade block, 40 percent uses yarn that comes from Asia. “We could have a big problem.”

Ceballos said manufacturers in the region tying Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and the Dominican Republic into a free-trade corridor with the U.S. are not yet delaying apparel deliveries to big U.S. brands such as Nike, Under Armour, Walmart or Macy’s, but that if the situation continues for another two months, they may need to do so.

Central America buys much of its fabric from Hangzhou in China, ordering from the likes of Cangnan Weixiang, Spinning Factory and Dongguan Xinchao Textile Co., which are having trouble shipping products due to logistic disruptions stemming from the virus.

Ceballos said Central America also buys yarn from U.S. suppliers and other firms in Guatemala, El Salvador and Honduras, but capacity is insufficient to meet China’s capacity.

If shortages increase, “we could bring fabric from other countries, but they would not meet rules of origin [for free-trade status] and would be very expensive. China’s thread and texturized yarn is half the price” of alternatives found elsewhere, he noted.

 

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Guatemala announces a plan to alleviate the crisis generated by the invasion of Ukraine

Q24N (EFE) The Government of Guatemala announced a "national emergency plan"...

El Salvador maintains the lowest fuel prices in the region

Q24N - The Government of President Nayib Bukele continues with the...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.