As the Central America region becomes increasingly important for textile producers, material recycler Recover has entered into a joint venture with local manufacturer Intradeco to produce its recycled cotton fiber in El Salvador.
The two are aiming to advance recycled cotton fiber production and sustainable textile innovation in Central America.
“Central America has become increasingly vital due to its proximity to major markets, especially the U.S. This joint venture between Recover and Intradeco, along with its vertical supply chains, allows us to supply recycled cotton products directly from the region, enabling quick and flexible supply chains, thus reducing lead times, costs and environmental impact, something that we believe will be very appealing to many North American brands trying to expand their material portfolios and introducing recycled content in their collections,” Recover chief executive officer Anders Sjöblom told WWD.
The Trump administration’s tariffs have “shaken the textile industry worldwide,” Sjöblom added. But El Salvador is poised to become a new strategic hub as it is only subject to the standard 10 percent tariff, thanks to the Central America-Dominican Republic Free Trade Agreement, CAFTA-DR, which remains in place.
Recover specializes in mechanical recycling for cotton and cotton-polyester blends.
Recover’s recycled cotton fiber.
Courtesy of Recover
The facility is located close to Central American textile waste and production streams, allowing for the fast lead times for textile producers in the Americas. It will also benefit companies looking to shorten their carbon footprint in transport, those nearshoring their operations and those seeking flexibility in an increasingly risky trade environment.
“Major non-American-based brands either have, or are setting up, sourcing operations in Central America to serve nearby countries, which really validates this move for us,” said Sjöblom.
“The region has become increasingly important over the past few years due to the global disruptions we’ve witnessed.”
Sourcing feedstock from Central America will also help U.S. textile and apparel manufacturers ensure compliance with the Uyghur Forced Labor Prevention Act, or UFLPA, and will support secured traceability for companies to shore up their supply chain claims.
“False claims or greenwashing have become very real threats to brand equity and though many companies would like to communicate more around efforts they are making, the textile production industry is still plagued with too many unserious players and fake claims,” he said.
This partnership marks a significant milestone in both companies’ commitment to sustainability and innovation.
“This joint venture is another step in our journey to enable large-scale sustainable change in fashion through business value and inspiration. Together, we aim to change global trend patterns and drive innovation and sustainability in the textile industry,” said Sjöblom.
“Intradeco is excited to partner with Recover to enhance our production capabilities and deliver high-quality recycled products at scale to our customers. This partnership represents a significant step forward in our commitment to sustainability,” added Intradeco CEO Jaime Miguel.
Inside Recover facility in Spain.
Thomas Francia / Courtesy Recover
As far as the long-tail effects of the Trump administration’s tariffs, Sjöblom said the move has “intensified conversations about nearshoring and diversification as tools to mitigate risk.”
This will be the fifth facility for Recover, following its factories in Spain, Bangladesh and Vietnam, as well as Pakistan, which operates through a partner. Sjöblom said he has not yet seen immediate effects.
“There is a sense of standby in the industry. I believe many brands are creating various scenarios and potentially hold off on making decisions, but in either case geographic flexibility is more important than ever,” he said.
The 75,400-square-foot facility will house production lines, a warehouse, research labs and offices for support functions, and will open in the second half of 2025. While the facility scales up, some of the facility’s first production will be managed in the company’s home country of Spain. Recover expects production capacity of 12,500 metric tons of fiber by the end of 2026.