Apparel manufacturer Sae-A Trading recently expanded its global production capability with the opening of a new spinning mill in Cartago, Costa Rica.
The South Korea-based company, which is one of the world’s largest apparel manufacturers, first entered the Costa Rica market in 2015 and has invested some 200 million in the Central American nation.
This latest spinning mill—Sae-A Trading’s third in Costa Rica—allows the company to triple its production capacity and expand its ability to produce a wide range of in-demand yarns. The facility has a capacity of 36,000 spindles and can produce 8 million kilograms of yarn annually. With this addition, Sae-A Spinning—the company’s spinning mill division—now has a capacity of 106,000 spindles with an annual yarn production of 24 million kilograms.
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WK Kim, chairman of Sae-A Trading parent Global Sae-A Group said the new facility allows the company to take advantage of nearshoring to grow its product pipeline to the United States.
“With this expansion, we are optimizing CAFTA tariff benefits for duty-free exports to the U.S., further strengthening the global textile supply chain,” he said.
Sae-A Trading counts American retail giants Target, Walmart, Kohl’s and Gap among its clients, while its parent company also supplies the EU market through its Sae-A Eins entity. Other divisions of Global Sae-A Group include the Wintex fabric mill, Korean retail arm In the F and Sae-A Spinning.
Beyond Costa Rica, Sae-A has a wide footprint across Central America, with facilities in Haiti, Guatemala and Nicaragua. The company also has a significant presence in Southeast Asia beyond South Korea, with locations in Vietnam, Indonesia, Cambodia and Myanmar. The company employs more than 60,000 workers in 10 countries across four continents.
Earlier this year, Sae-A Group acquired Atlanta-based sports apparel manufacturer Tegra, which makes sports uniforms and gear for professional, college and high school athletes. That acquisition included U.S. operating entities Fjord and ArtFix, and well as Southern Apparel Contractors in Honduras and Decotex in El Salvador.
Kim said the new facility plays an important role in Sae-A’s sustainability goals, which include being net-zero by 2050 with interim targets for 2030 that were validated by the Science-Based Targets Initiative (SBTi).
“Sae-A Spinning has been a leader in sustainability by using 100 percent U.S.-grown cotton, ensuring traceable and eco-friendly production processes,” he said. “We remain committed to maintaining our leadership through our traceability system, sustainability certifications, and green manufacturing processes.”
Costa Rica president Rodrigo Chaves Robles attended the opening of Sae-A’s new facility, which is located about 20 kilometers southeast of the capital, San José, sharing his appreciation for the company’s continued investment in the country.
“This is an occasion to once again reaffirm the cooperative relationship we have built on trust, stability, and mutual respect with Global Sae-A, which has played a central role in Costa Rica’s development,” he said.
