The Partnership for Central America and Partners Join Launch of New Textile Facility in Honduras
SAN PEDRO SULA, AUGUST 11, 2022 - Today, the Partnership for Central America (PCA) and the Government of Honduras convened executives from Parkdale Mills, Gildan, SanMar and Elcatex at Elcatex’s new San Juan Textile and Parkdale Mills’ construction site, which will bring new textile fabric and yarn spinning in Choloma, Honduras. The new facility is part of Parkdale Mills’ new commitment to invest in job creation and supply chain sustainability in Honduras since joining PCA in December 2021. The visit follows an announcement in June where PCA partners committed to more than $700 million towards textile and apparel manufacturing in the region.
Quality, sustainable jobs are essential to upward mobility and opportunity, but in Central America, only 20% of the workforce is employed in the formal economy. According to the IDB, 74% of migrants have cited low wages or lack of jobs as a reason for migrating in the last few years.
PCA partners are committed to investing in local economies and creating jobs across textile and apparel manufacturing, agriculture, auto parts and beyond – all with an emphasis on inclusive, fair, and sustainable living wages:
Along with its new yarn spinning facility in Choloma that will support roughly 500 employees, Parkdale Mills has committed to $150 million towards increasing direct and indirect job growth in Honduras and the U.S., as well as new investments in solar energy, water recapture, and energy efficient HVAC systems;
SanMar is increasing its purchases of products manufactured in Northern Central America by $500 million over the next three years, which will translate into at least 4,000 additional full-time jobs at Elcatex, a Honduras-based apparel manufacturer;
Gap Inc. plans to increase its sourcing in Central America by $150 million over the next three years, which will translate into an estimated 5,000 additional manufacturing jobs;
In addition to textiles and manufacturing, PCA partners are investing in programs to increase financial inclusion, enhance broadband access, expand job skilling and educational opportunities, and improve gender equity across Honduras. Millicom has committed to $700 million to expand and maintain its mobile and broadband networks in Guatemala, Honduras, and El Salvador over the next two years; Mastercard has committed $150M to bring 5 million people into the financial system and digitize 1M micro and small businesses in El Salvador, Honduras and Guatemala; Microsoft has expanded access to broadband internet to 2 million households across the region, including rural communities in Honduras; and CARE has committed $50 million to gender equity and job training programs in Honduras, Guatemala, and El Salvador.
Participants of the site visit included Minister of Investment Medina, Minister of Economic Development Barquero, and Secretary Zelaya Castro of the Honduran government; Jonathan Fantini-Porter, Executive Director of the Partnership for Central America; Andy Warlick, CEO of Parkdale Mills; Jesus Canahuati, CEO of Elcatex; Renton Leversedge, Chief Development Officer of SanMar; and Israel Salinas, Senior Vice President Global Supply Chain and Production Innovation of Gildan.
Through strong collaboration between the public and private sectors, the PCA and its partners are committed to driving inclusive economic growth in Honduras and creating greater opportunities for the people of Northern Central America.
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The Partnership for Central America is a non-partisan, non-governmental organization that works with a multi-national coalition of private organizations to advance economic opportunity across underserved populations in El Salvador, Guatemala, and Honduras. The Partnership serves as a coordinating body of Vice President Harris’s Call to Action and aims to facilitate and support practical solutions to advance economic opportunity, address urgent climate, education and health challenges, and promote long-term investments and workforce capability in support of a vision of hope for Central America. If you are interested in learning more, please reach out to membership@centampartnership.org.
