Nextil benefits from Trump's tariffs: 175 million dollar contract with US-based Maxum
Madrid – The Spanish textile company Nextil Group has secured a major partnership with the US multinational Maxum International Group, becoming a key player in Maxum’s supply chain. This partnership is a direct result of the relocation of production by US companies, driven by the new trade and tariff policies of President Donald J. Trump. The exclusive production contract is valued at a minimum of 175 million dollars over the first five years.
Terms of the agreement
Under the agreement, Nextil will develop up to six parallel production programs for Maxum from its plant in Guatemala. The first year, beginning in October 2025, has a formal production commitment of 15 million dollars, which will increase to over 40 million dollars annually from the second year onward. The partnership leverages the commercial conditions of the Central America Free Trade Agreement (CAFTA) to offer a competitive alternative to Asian production. Nextil has stated that this agreement will necessitate an expansion of its Guatemalan production capacity beyond 2026.
César Pérez Revenga, CEO of Nextil Group, called the partnership a "turning point" for the company. He highlighted that the deal not only solidifies Guatemala as a strategic textile platform for the US but also places Nextil at the center of the global shift of large North American groups from Asia to more sustainable and traceable production models. Gary Peterman, CEO of Maxum International Group, expressed his excitement about the shared growth plans and the potential for developing new opportunities on a global scale.
Strategic importance
The agreement is a "tangible proof" that the concept of "nearshoring" has now become a reality in the form of large-scale contracts. This partnership is a significant step in the execution of Nextil’s strategic plan for 2024–2026. The company plans to provide further details on this contract and other future client agreements at a forthcoming Investors Day.
- Nextil Group has formalised a partnership with Maxum International Group, becoming a key player in its supply chain with a minimum five-year production contract worth 175 million dollars.
- The agreement will allow Nextil to develop up to six parallel production programmes for Maxum from its plant in Guatemala, taking advantage of the benefits of the Central America Free Trade Agreement (CAFTA).
- This strategic contract boosts Nextil’s strategic plan for 2024-2026, consolidating its position as a global textile platform and allowing the expansion of its production capacity in Guatemala.
This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
OR CONTINUE WITH