The international company HanesBrands has 30 years of being in the Salvadoran market and is the largest exporter in the country.
HanesBrands is the largest exporter in El Salvador, the company reached sales of $637.7 million at the end of 2023; representing more than 20% of total exports of the textile and clothing sector, 9.8% of El Salvador’s total exports.
The manager of Textiles El Salvador de HanesBrands, Francisco Barahona, explained that of the total exports, 68% correspond to clothing and the remaining 32% to the export of fabric. Clothing includes socks, underwear and multi-style sportswear.
We produce 474 million garments and 63 million pounds of fabric in 2023, he adds. According to Barahona, exports in 2023 were very close to the average of the last 5 years of $677 million, despite the contraction of demand in our main export market that is the United States.
Consumer demand, especially the American one, remains volatile, with shorter orders, they demand higher speed and we are as a global company opening more channels to approach them in a personalized way one by one, Barahona explains.
The company operates in the country three sewing plants, a textile plant, a sock production plant, one of dying garments, a distribution center and a product development plant. The sock plant, El Salvador Socks, is currently one of the highest productivity belonging to the company worldwide and concentrates 65% of the total manufacture of this garment within the entire supply chain.
HanesBrands has the entire integrated supply chain, from the manufacture of the fabric, through the finishing and cutting processes to the manufacture and definitive export of finished garments. This leads to economies of scale and efficiency gains that make us more competitive in international markets. We can dress a single client head-to-toe with our Salvadoran operation, Barahona explains.
The products most exported by the company were socks, panties and T-shirts.
Restructuring
The company has managed to overcome the adverse global context that has left exports of the Salvadoran textile sector in general a contraction in 2023 of 17%, compared to the previous year.
But this has involved restructuring processes involving betting on iconic brands such as Hanes and Maidenform to reach more demanding consumers and specialized market niches; and also closing one of their plants.
In November last year the company announced the forced closure of one of its plants that manufactures sports clothes and according to Barahona it is planned to cease operations at the end of the last quarter of the year. Currently the plant operates normally dedicated to the production of activewear (shirts, pants, among others) , he points out.
This has meant that other plants such as El Pedregal and JIBOA have been converted to multistyle plants, with the capacity to produce not only underwear, but also sportswear and other types of clothing.
The goal is to have a flexible supply chain, capable of adapting and responding quickly to the constant changes in demand in the clothing market, Barahona adds.
By 2024 the company hopes to continue its efforts to boost its online sales channel, and concentrate on business units that present a better growth perspective, such as underwear (underwear) and further develop the sustainability strategy, says the manager.
Experience
The company that produces brands such as Hanes, Bonds, Maidenform, Bali, among others, has 30 years of operation in El Salvador, where it has invested a cumulative of $700 million between plant construction, equipment and machinery, as well as training and education programs for its employees.
The last investment he made was for $2 million to build an ozone plant that allows the treatment of waste water naturally, and is the largest plant of this type in El Salvador, Barahona says.
On the other hand, HanesBrands has in the country its Product Development plant, which develops the new products that the market demands.
According to the company’s manager, part of the factors that differentiate El Salvador are: a road connectivity network that allows them to supply operations throughout the C.A. and export to the U.S. in an agile and efficient way. In addition, an electric power matrix that provides supply options that allows them to obtain a stable and good quality supply.
This article has been translated after first appearing in