Latest news with #Hansae
Yahoo
30-07-2025
- Business
- Yahoo
Why Central America is Central to Hansae's Multi-Country Manufacturing Strategy
The Western Hemisphere is heating up as a sourcing destination, as American companies seek out production closer to home. Nearshoring ticks numerous boxes for brands. Firstly, it shortens lead times, enabling quicker replenishment and allowing for more responsive production runs. By reducing the distance that goods must travel, importers simultaneously minimize logistics and transportation risks. Additionally, working with nearby partners in similar time zones improves collaboration. For American brands, one of the key nearshoring regions is Central America, which is covered by the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). Per the United States Fashion Industry Association's 2024 Benchmarking Report, 52 percent of companies said they planned to expand sourcing from CAFTA-DR member countries in the next two years, up from 40 percent in 2023. More from Sourcing Journal Jeanologia Bridges Design and Manufacturing in Miami How TENCEL™ Lyocell Fibers with Micro Technology Provide Premium Comfort INTERFILIERE SHANGHAI'S Silk Zone to Boost Understanding of Elegant Yet Versatile Material Responding to this increasing interest, textile and garment manufacturing group Hansae has made Central America a key investment area. Headquartered in South Korea, the company has factories in eight countries, including Guatemala, El Salvador, Nicaragua and Haiti. Hansae is continuing to enhance its facilities in the region to better serve Western Hemisphere customers with more capacity, verticality and technology. 'Through strategic investments and operational upgrades in Nicaragua and El Salvador, Hansae is further strengthening its position as a trusted manufacturing partner for leading U.S. brands,' said Jun Chung, vice president of strategy and planning at Hansae. Hansae's longest foothold in Central America has been Nicaragua, which it entered in 1998. Expanding its capacity in the country, Hansae will be adding 60 sewing lines to its plant in SEBACO by the second quarter of 2026. A key focus within Hansae SEBACO is automation. The facility leverages technology and innovations from Hansae's factories across the globe, particularly Vietnam. In addition to automated sewing and cutting machines, the plant incorporates automated hanger systems, guided vehicles, box-making machines and box-folding machines for efficiency. Further streamlining production, the SEBACO plant has a partner print mill in the same complex as the garment factory, allowing high-quality embellishments like printing, dyeing and embroidery to be added to garments on site. Although the infrastructure for embellishments is developing in Central America, capacity remains tight and certain specialized capabilities such as flocking and multi-layered screen printing are still largely concentrated in Asia. With this co-located print mill, Hansae is helping to expand the capabilities available in Nicaragua and the region. While Hansae has been in Nicaragua the longest, the company's youngest base in the region is in El Salvador. Established in 2024, the group's presence in the country spans an owned facility with 22 sewing lines and a partnership with an outsourcing factory in the Sam-Li Industrial Zone, which has 25 lines. Hansae had multiple reasons for entering the nation. 'El Salvador offers excellent logistics connectivity, including a regional airport hub, and it benefits from a strategic partnership with the national investment agency,' said Chung. 'With a growing economy and improving infrastructure, El Salvador presents strong synergy potential for future verticalization and sustainable manufacturing investment.' At a country-wide level, El Salvador is also undergoing reforms. President Nayib Bukele—who took office in 2019 and was re-elected in 2024—has cracked down on crime and gang violence. Despite some controversy surrounding the methods used, they have resulted in extreme reductions in violent crimes, with annual reported homicides declining from over 1,000 in 2021 to 114 in 2024. Another attraction for El Salvador is favorable duty rates, since the nation has not been a target for the Trump administration's widespread reciprocal tariffs. Compared to heftier duties placed on some nations' U.S.-bound exports, El Salvador-origin goods are only subject to the baseline 10 percent tariff. Hansae's latest investments in Central America complement its wider Western Hemisphere expansion. Adding verticality, Hansae acquired California-based fabric mill Texollini last year. With capabilities including in-house knitting, research and development, dyeing, printing and finishing, the Long Beach mill will provide synthetic fabrics for Hansae's activewear, intimates and swimwear manufacturing in the Western Hemisphere. In other vertical moves, Hansae linked up with Imperial Group in Guatemala to provide a pipeline of locally sourced textiles for its factories in the region. Additionally, Hansae will be opening a factory in Michatoya Industrial Park in Guatemala in the third quarter of 2026, growing its production hubs in the region. 'Hansae continues to expand its multi-country manufacturing model, anchored in regional vertical capabilities and innovation-led investments,' said Chung. 'With ongoing investments in automation, embellishment and synthetic fiber integration, Hansae is building the foundation for its next phase of competitive manufacturing leadership.' 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Yahoo
12-02-2025
- Business
- Yahoo
Upstream Focus: AJG Fashion Consulting Founder Alice James on Proactivity and Production Proximity
Upstream Focus is Sourcing Journal's series of conversations with suppliers, associations and sourcing professionals to get their insights on the state of sourcing, innovations in manufacturing and how to improve operations. In this Q&A, Alice James, founder of AJG Fashion Consulting, shares why the Austin-based design and development firm is ramping up its factory partnerships in Europe and South America and how to proactively plan for supply chain challenges. Name: Alice JamesTitle: FounderCompany: AJG Fashion Consulting More from Sourcing Journal Turkey's Rising Minimum Wage Puts Pressure On Apparel Manufacturers Hansae CEO on the Manufacturer's Expanding Global Footprint and Vertical Strategy RISE Reaches New Heights in Garment Worker Equality What's the number one question you get from your clients now that was never really a consideration before? In recent years, the demand for speed and innovation has skyrocketed in the fashion industry. Clients are increasingly asking how they can get their products to market faster without compromising on quality or social compliance. The shift toward transparency and traceability in the supply chain has become even more important to our brands, driven by consumer demand. Our commitment to these principles as part of our business practices has allowed us to provide our clients with the information they need readily. We're also fielding more inquiries about 3D design technology and how it can save time and resources. Virtual fit sessions in particular are a game-changer for brands looking to streamline their processes. We are seeing a rise in brands that aim to address niche markets or solve specific problems, such as creating adaptable apparel. This focus on innovation and inclusivity is something we're excited to support. How are you evaluating potential brand and retail clients? What do you look for in a customer now, compared to a few years ago? Our focus is on brands at that pivotal point of growth, where they're ready to scale but aren't yet able to build a full in-house team. We see many founders trying to wear all the hats—designer, production manager, logistics coordinator—and it's simply not sustainable. They end up missing growth opportunities because they're bogged down in day-to-day operations. We're particularly drawn to clients who recognize the value of setting up proper processes, which allows them to easily scale and maintain ownership over their hard work. Another key element is improving quality assurance processes. Too often, brands lose money and waste time due to poor planning or unvetted factory partners. We take pride in setting these brands up for long-term success, and there's nothing more rewarding than watching them thrive. As the apparel industry tries to overcome its stock issues, how can supply chain partners improve inventory management? Inventory management has become more challenging due to shorter lead times, market volatility and the need to quickly adjust to sales demands. Brands are hesitant to commit to production so far in advance, which is understandable. To combat this, supply chain partners need to focus on reducing production and sourcing lead times as much as possible. It's about finding that balance between reacting quickly to market demands and avoiding overproduction and waste. What should be brands' and retailers' top lesson from last year? How can they address this in their operations? The importance of flexibility and preparedness. The past year has shown that disruptions can happen at any time, and brands need to have contingency plans in place. This means diversifying sourcing regions, investing in technology that allows for quick pivots and maintaining strong relationships with supply chain partners. Being proactive rather than reactive will be key to navigating future challenges. How are you working with your factories to support quick-turn, small-run orders? We've embraced 3D design technology, specifically using CLO 3D, to streamline our sample-making process. By digitally testing styles on virtual avatars, we can assess fit, design and quality before ever producing a physical sample. This approach not only saves time but also reduces costs associated with shipping samples back and forth, resources in making unnecessary samples, and shortens development lead times. Additionally, we've expanded our network of factories in South America and Europe. The proximity to our market, combined with their ability to handle smaller production runs, has significantly shortened our development and production timelines. This allows us to be more responsive to our clients' needs, whether they require quick turns or smaller quantities. Which new sourcing regions are you either considering or ramping up today? There's a noticeable shift away from sourcing in China and Asia as brands explore nearshoring options. We're actively working with socially compliant factories in Portugal and South America. These regions offer the added benefits of working with natural fibers and eco-materials while maintaining lower minimum order quantities (MOQs) compared to their Asian counterparts. This shift aligns with our clients' growing demand for sustainable and ethical production. As you're considering where to source, what are your top considerations today? Social compliance and transparency are non-negotiables for us. We prioritize partners who have all their social compliance certifications in place and are fully transparent about their operations. Fair labor standards, supply chain traceability and sustainability are the foundation of our sourcing strategy. We seek out factories that share these values, ensuring that our clients can proudly stand behind their products. We have longstanding, personal relationships that take time and trust to build, and we have personally visited all of our factory partners in the last two years. What keeps you up at night? The thought of brands moving forward without a proper tech pack or blindly trusting factory partners without thorough vetting is concerning. Entrusting the wrong factory with thousands of dollars or allowing them to have control over your intellectual assets can lead to significant setbacks, from production delays to quality issues to essentially holding your product hostage, preventing brands from having control over their product. Our goal is to ensure that every brand we work with has the tools and knowledge to build a resourceful, successful process from the outset. What makes you most optimistic? The incredible progress we're seeing in sustainable practices across the industry is truly inspiring. Many of our factory partners are going above and beyond to work with eco-friendly suppliers and mills, which gives us hope for the future of fashion. We're also thrilled to see more women-owned, minority-owned and LGBTQIA+ owned businesses entering the market. Their unique perspectives are driving innovation and addressing underserved areas, and we're honored to be part of their journey. What's in store for AJG Fashion Consulting for 2025? In 2025, we will continue to expand our global network of certified factories to prepare our brands for possible tariffs and needed adjustments to supply chains. We understand that now more than ever, launching and growing brands need nimble, multichannel supply chains to keep costs affordable and maintain desired inventory positions. We will continue to stay committed to supporting our fashion brands as they navigate the complexities of the fashion industry while staying true to our values of sustainability, transparency and ethical production.
