Textiles: Why Korean giant Sae-A is betting on nearshoring in El Salvador and the US

By bringing its production closer to the US market, the group is focusing on responsiveness and logistical control, while reducing its dependence on Asian supply chains. The move is indicative of a broader shift. The global textile industry is refocusing on proximity and industrial resilience.

Global player consolidating its regional base

Founded in 1986, Sae-A Trading is one of the world's largest textile and apparel manufacturers. The company operates an integrated industrial network spanning from Southeast Asia, including Vietnam and Indonesia, to Central America, with locations in Guatemala; Honduras; Nicaragua; Costa Rica; Haiti; and El Salvador.

With nearly 40 years of experience and clients including major international brands, Sae-A is focusing on verticalising its value chain and investing in technology. This strategy helps it to stand out in a sector facing intense pressure on costs and sustainability. The acquisition of Swisstex is fully aligned with this strategy.

Based in Los Angeles and founded in 1996, Swisstex is renowned for its advanced knitting, dyeing, and finishing processes. It is also known for its innovations in high-performance textiles, such as moisture management, UV protection, and antimicrobial properties.

Its factories in El Salvador and California employ approximately 500 people, with 300 at the Central American site.

Key presence for North American nearshoring

By acquiring Swisstex, Sae-A strengthens its production network in the US and Central America. This follows the successful integration of sportswear manufacturer Tegra in 2024. This regional presence helps to reduce supply lead times to the North American market and secure nearshore production. This aligns with the expectations of sports and performance brands. Retaining the local management team is intended to ensure operational continuity and quality of service for major clients.

“This acquisition marks a key milestone in our global expansion and industry leadership strategy,” commented James Ha, CEO of Sae-A Trading. He promised to invest in automation and artificial intelligence to increase efficiency and production capacity.

For Swisstex, joining a globally structured group provides access to new financial resources and an expanded commercial network. Its president, Keith Dartley, believes that the convergence of quality and service values between the two companies “will allow us to better respond to market opportunities and challenges”.

El Salvador and the US: a strategic bet on proximity and resilience

By investing in El Salvador and the US, Sae-A is anticipating the new geography of global sourcing. El Salvador offers a competitive and geographically close industrial base to the US market. This is supported by the advantages of the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR), the free trade agreement between the US, Central America, and the Dominican Republic.

This framework promotes smooth logistics and controlled costs. It makes the country a strategic nearshoring hub for North American brands looking to reduce their dependence on Asia and increase the traceability of their supply chains.

In parallel, the Los Angeles location strengthens the group's direct commercial presence in the world's largest apparel market. It also brings prototyping, customisation, and distribution capabilities closer to major players in the sports and lifestyle sectors.

This El Salvador–California partnership creates an integrated production corridor. It combines responsiveness, textile innovation, and sustainability — three decisive factors in facing time-to-market pressure and new CSR requirements.

In short, Sae-A is not merely expanding its industrial footprint. The group is building a regional platform for competitiveness along the North American axis. This provides an agile and resilient alternative to the traditional Asian model, which could redefine the global balance of textile sourcing.