Honduras is expanding capabilities to become a bigger player in the U.S. and Europe.
Led by the Honduras 20/20 initiative, Honduras raised $73 million in international investments for its textile sector. The infusion of capital will be used toward a new synthetic yarn production plant, designed to boost the country’s competitive advantage.
At 25,000 tons per year, the United Textiles of America (Unitexa) Company will be the largest capacity facility of its type in Central America. The plant will produce draw texturized yarn (DTY) in a range of dimensions and textures, which can be used in a variety of garments, including stain-resistant styles.
Unitexa is expected to employ 250 direct jobs and about 300 indirect jobs.
Honduras 20/20 is an initiative through which the government has tapped private sector support to stimulate economic development with 600,000 additional jobs and $13 billion in investment by 2020. Textiles is one of four main pillars to the program.
The country has already leveraged its proximity to the U.S., competitive prices and social responsible practices to become No. 1 in cotton T-shirt exports to the U.S. and No. 7 in the U.S. market overall. Now Honduras is looking to surpass Indonesia and Mexico to become the No. 5 apparel provider. Under Honduras 20/20, the country is looking to increase exports to $4.2 billion and improve its standing in both the U.S. and Europe. The growth would also allow the country to add 200,000 jobs to the sector, in addition to the 150,000 existing positions.