Maxum Joins Forces with Nextil in Guatemala, Aiming for $175 Million Business in Five Years

The Spanish giant Nueva Expresión Textil (Nextil) has signed the most important contract in its history with the U.S. giant Maxum International Group to produce textiles in Guatemala, with contracts foreseen for $175 million over five years.

Nextil has signed a memorandum of understanding with the U.S. consulting and distribution company between manufacturers and brands that manages more than $2 billion in retail volumes in the North American market and counts among its clients companies such as Costco, BJ’s, Sam’s and Waltmart, among others.

The agreement establishes a strategic collaboration framework to develop textile programs from Nextil’s facilities in Guatemala, under the framework of the Cafta agreement, the free trade agreement between the Dominican Republic, Central America and the United States, on an exclusive basis for the next five years with the possibility of renewal.

Nextil signs the agreement after the sale of its production facilities in Portugal for €4.4 million 

Nextil and Maxum estimate an initial minimum production volume of $15 million per year starting next October, a growing volume to over $40 million per year from the second half of the second year, over a five-year period, and a total cumulative commitment of at least $175 million by 2030.

The alliance is part of the U.S. company’s strategy to progressively move all its production from Asia to Guatemala, driven by the current tariff framework, near shoring and the industrial and quality competitiveness of the Spanish group, through its subsidiary Nextil Elastic Fabrics Guatemala.

Nextil, for its part, is carrying out this agreement after completing the sale of all its production facilities in northern Portugal last August, structured under the formula of sale & leaseback (an operation that allows, after selling an asset, to lease it back on a long-term basis) for €4.4 million and has announced that it continues to work on other agreements that will be disclosed in the coming months.