)
Supply Chain
Hansae's Guatemala Hub Will Reduce Costs and Emissions While Navigating Trade Issues
Hansae, a major Korean apparel manufacturer, is expanding its environmentally friendly, vertically integrated production model from Vietnam to Guatemala, aiming to build a second global hub that will reduce environmental impact and avoid U.S. trade barriers.
The company is investing $300 million to build a 500,000-square-meter (5.3 million-square-feet) industrial complex in the Michatoya Industrial Park in Guatemala by the third quarter of 2026. The new site will replicate Hansae’s proven model in Vietnam by combining spinning, fabric dyeing, and garment manufacturing in a single location.
Hansae plans to use biomass-fueled boilers, water-saving dyeing machines, and advanced wastewater treatment systems at the Guatemala plant, just as it does at its flagship facility in Vietnam.C&T Vina, a Hansae subsidiary located in Dong Nai, about 88 kilometers (54 miles) north of Ho Chi Minh City, is the core of this strategy. Its third factory uses 100 percent biomass fuel — made of compressed rice husks, cashew nut shells, and sawdust — instead of coal, significantly cutting emissions.
Inside the facility, modern dyeing machines reduce water use by more than 40 percent and operate nearly twice as fast as older models. Over 4,500 tons of wastewater are treated daily, with 1,500 tons reused through a reverse osmosis (RO) system. The factory aims to cut carbon emissions by 60 percent, water use by 50 percent, and electricity use by 15 percent by 2027.
C&T Vina is the first Korean-owned textile plant in Vietnam to receive Leadership in Energy and Environmental Design certification for sustainable buildings.
Hansae’s model emphasizes vertical integration, bringing yarn production, knitting, dyeing, and sewing to a single site. This shortens supply chains and limits disruptions from raw material or logistics issues. That strategy has helped Hansae build long-term partnerships with global retailers, including Gap, H&M, MUJI, and Target.
The Guatemala facility, to be operated under the name C&T Guatemala, will have the capacity to process 50,000 kilograms (110,230 pounds) of fabric per day. It will also feature a new AI-based camera inspection system to improve quality control and reduce defect rates.
Hansae’s acquisition of U.S.-based textile firm Texollini last year also plays a key role in this expansion. Hansae plans to apply Texollini’s fiber technology in Guatemala to increase production of high-value activewear.
h 276 billion won ($190 million) — up 30 percent from this year.
.jpg)
A logistics robot operates at a Hansae factory in Vietnam.
Guatemala will serve as the second global production base after Vietnam. This project completes vertical integration across the Eastern and Western hemispheres, helping Hansae diversify production risk and offer more supply-chain options to their clients.
The company chose Guatemala for its proximity to the U.S. market and its favorable trade terms. While U.S. tariffs on garments made in Vietnam or Bangladesh hover around 20 percent — and reach up to 45 percent for Chinese goods — Guatemala faces lower rates of about 10 percent.
Korean fashion manufacturers are increasingly shifting production westward in response to the U.S.-China tariff war. Hansae currently produces about 40 percent of its garments in Vietnam, with more than 85 percent of that output exported to the United States. Other Korean apparel firms are also diversifying their production bases. Sae-A Trading recently acquired factories in El Salvador and a U.S. subsidiary to boost North American capacity, while Hwaseung Enterprise is building a new environmentally friendly footwear factory in southern India.
By moving closer to the U.S. market, companies expect to cut delivery times and strengthen control over inventory and quality. In Vietnam, production-to-delivery timelines typically stretch to six months. In Guatemala, that window is expected to shrink to about four months.
Hansae projects that the Guatemala facility will help drive a sharp increase in revenue. Combined with its Vietnamese operations, the company expects C&T’s total sales in 2026 to reach 276 billion won ($190 million) — up 30 percent from this year.
The company chose Guatemala for its proximity to the U.S. market and its favorable trade terms. While U.S. tariffs on garments made in Vietnam or Bangladesh hover around 20 percent — and reach up to 45 percent for Chinese goods — Guatemala faces lower rates of about 10 percent.
Korean fashion manufacturers are increasingly shifting production westward in response to the U.S.-China tariff war. Hansae currently produces about 40 percent of its garments in Vietnam, with more than 85 percent of that output exported to the United States. Other Korean apparel firms are also diversifying their production bases. Sae-A Trading recently acquired factories in El Salvador and a U.S. subsidiary to boost North American capacity, while Hwaseung Enterprise is building a new environmentally friendly footwear factory in southern India.
By moving closer to the U.S. market, companies expect to cut delivery times and strengthen control over inventory and quality. In Vietnam, production-to-delivery timelines typically stretch to six months. In Guatemala, that window is expected to shrink to about four months.
Hansae projects that the Guatemala facility will help drive a sharp increase in revenue. Combined with its Vietnamese operations, the company expects C&T’s total sales in 2026 to reach 276 billion won ($190 million) — up 30 percent from this year.