A Strategic Move to Enhance Supply Chain Stability Across the Region
The sustainable textile sector witnessed a major advancement when Spain’s Recover, which leads cotton fiber recycling worldwide, revealed its intention to construct a new cotton fiber recycling plant in El Salvador through collaboration with Intradeco, a key Salvadoran industrial firm. The facility is expected to reach full operation in the second half of 2025 and will produce 12,500 tons of recycled cotton fiber in its first complete operational year.
Recover has launched an ambitious project to strengthen its Latin American operations and improve regional supply chains against a backdrop of evolving global trade patterns. The current focus on nearshoring and sustainable manufacturing practices makes El Salvador a major competitor in future eco-friendly textile production through this initiative.
Why El Salvador?
Multiple important drivers influence the choice to build a cotton fiber recycling plant in El Salvador. The country’s location near the United States forms the primary reason for its importance, as the U.S. is a significant market for textiles and apparel. El Salvador provides duty-free access to the U.S. market for qualifying items thanks to its membership in CAFTA-DR, which makes it a prime location for businesses aiming to quicken shipping processes and lessen the effect of Asian textile import tariffs.
El Salvador’s continuous enhancement of its industrial facilities makes it an appealing destination for sustainable and circular manufacturing operations. Working alongside Intradeco, which possesses extensive apparel production and regional distribution expertise, guarantees the plant can utilize existing local logistics infrastructure and access a knowledgeable workforce.
A Fast and Flexible Value Chain
Anders Sjöblom, Recover’s CEO, explained that the partnership will establish an efficient value chain that swiftly processes recycled cotton products while cutting lead times and enhancing cost-effectiveness. The partnership will facilitate direct delivery of recycled cotton from Central America to the United States because of regional proximity which will establish a quick and adaptive value chain at reduced costs and environmental impact as he explained.
The present trade instability requires essential business agility. Brands and suppliers are diversifying their manufacturing bases because of potential U.S. textile tariffs targeting Asian imports. Recover has established a cotton fiber recycling plant in El Salvador as a means to both expand their operations and prepare for potential global supply chain disruptions.
Sustainability at the Core
The new facility will maintain Recover’s established dedication to sustainability practices. Cotton recycling plays an essential role in circular fashion systems because this approach seeks to prolong the life of natural fibers while reducing the environmental footprint of producing garments. Traditional methods of growing cotton require substantial resources because they consume large amounts of water and pesticides. Recycled cotton requires substantially less water and energy while producing fewer greenhouse gas emissions.
Recover is using this plant to further its initiative of cutting down virgin material dependence in the fashion sector. The newly established 75,400-square-meter site will feature cutting-edge recycling technology alongside quality control and environmental protection measures to guarantee performance and sustainability outcomes.
Scaling Global Operations
Recover will expand its global operations by opening a facility in El Salvador as its fifth manufacturing plant alongside its existing operations in Spain, Bangladesh, Pakistan, and Vietnam. The placement of each facility followed a strategic design to connect with regional supply chains and meet client needs. The recently opened Vietnam plant in Dong Nai province was constructed to facilitate production throughout Southeast Asia and has the capacity to produce 10,000 tons of recycled fiber per year.
The business strategy of Recover focuses on locating operations close to demand areas to reduce logistical challenges and enhance responsiveness. The El Salvador plant will start operating with support from Spain but aims to achieve full self-sufficiency one year after its launch.
Supporting Nearshoring Trends
The new cotton fiber recycling facility in El Salvador represents a broader industry movement toward establishing production facilities closer to key markets. The increasing labor expenses and geopolitical risks in Asia drive companies to establish or expand their operations near their target markets.
Sjöblom emphasized that global trade strategies are shifting because major multinational corporations outside the U.S. are establishing regional production facilities to meet local market demands. The U.S. Administration’s decisions about tariffs have brought forward stronger discussions regarding nearshoring.
The industry maintains a wait-and-see posture because many brands have to reconcile their long-term sustainability goals with short-term flexibility needs. The El Salvador production project acts as both a manufacturing facility and a protective measure against emerging international trade uncertainties.
Investment and Employment Opportunities
The specific investment value remains undisclosed but the facility will create substantial jobs throughout the region by direct and indirect means. The plant will provide both skilled technical positions and logistics and administrative roles, which will enhance El Salvador’s economic development while strengthening its position in the global textile industry.
The Intradeco partnership will allow local suppliers and subcontractors to gain advantages, which will enhance the investment’s multiplier effect. This investment demonstrates how the merging of environmental and economic sustainability principles can serve as a blueprint for future industrial projects throughout Latin America.
Future Outlook
The choice by Recover to build a cotton fiber recycling facility in El Salvador demonstrates an advanced commitment to sustainable production systems and regional supply chain strength through integration. The company leverages Intradeco’s established network of expertise and resources to achieve efficient business growth.
Growing demand for sustainable textiles alongside commercial pressures to produce green products without harming profits makes facilities such as these essential. This plant will decrease global textile waste through its 12,500 tons annual production capacity while establishing new benchmarks for recycled fiber quality.
Conclusion: A Bold Step Toward Circular Fashion
Recover’s new cotton fiber recycling plant in El Salvador represents a strategic milestone for the company and transforms the Latin American textile industry landscape. Recover’s strategic positioning of its high-capacity facility in a growth-oriented sustainability leader region enables it to influence market directions as well as contribute to shaping circular fashion’s future.
In the face of combined environmental and economic challenges, companies that provide local solutions that minimize impact while maximizing cost-effectiveness will achieve a competitive advantage. Recover’s strategic decision to establish operations in El Salvador shows that circular economy models have transitioned from niche concepts to essential business practices.