US-based Parkdale Mills, one of the largest manufacturers of spun yarn and cotton consumer products in the world, will make a multimillion-dollar investment in a new yarn spinning facility in Honduras and make an additional substantial investment to support existing operations in Virginia. This investment will help customers shift a million pounds of yarn per week away from supply chains in Asia and China and enhance US and CAFTA-DR (Dominican Republic-Central America Free Trade Agreement) co-production resilience and increase regional product offerings. Parkdale will create hundreds of jobs in Honduras and further support hundreds of employees in Parkdale’s Virginia operations. Parkdale sees an enormous opportunity for brands and retailers to re-shore and nearshore production supply chains and double the size of US-CAFTA-DR trade.

The textile and apparel co-production chain is one of the most essential supply chains for employment and economic development in both the United States and the Northern Triangle region, currently supporting over a million jobs in the United States and the Central American region. The Dominican Republic-Central America Free Trade Agreement and its strong rules of origin are the primary reasons this co-production chain exists and is seeing significant growth this year. Rules of origin in nearshoring production chains help address labor and environmental challenges and mitigate supply chain risk.