Officials during the inauguration of Sae-A Group’s third spinning facility in Cartago, Costa Rica. Credit: Global Sae-A Group.

South Korea’s Sae-A Group has boosted its yarn production capacity in Costa Rica with the inauguration of its third spinning facility in Cartago city on 11 October 2024.  

The new mill, part of Sae-A Spinning, is equipped with 36,000 spindles and is projected to produce 8m kg of yarn per year.  

The establishment of the third mill marks a significant increase in Sae-A Spinning’s manufacturing capabilities and supports the company’s aim of producing a wide range of yarns in response to rapidly changing market trends.

This expansion brings the company’s total spinning capacity to 106,000 spindles and an annual production capability of 24m kg of yarn. 

Global Sae-A Group chairman WK Kim said: “With this expansion, we are optimising CAFTA tariff benefits for duty-free exports to the US, further strengthening the global textile supply chain.”  

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He further added: “Sae-A Spinning has been a leader in sustainability by using 100% US-grown cotton, ensuring traceable and eco-friendly production processes. We remain committed to maintaining our leadership through our traceability system, sustainability certifications, and green manufacturing processes.” 

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Sae-A Group entered the Costa Rica market in 2015 and says it has demonstrated a commitment to vertical integration within the apparel sector, achieving a comprehensive manufacturing process that encompasses every stage from yarn spinning to finished garments. 

The company’s decade-long investment in Costa Rica has totalled $200m and it has consistently expanded its operations.

Its first mill has a capacity of 34,000 spindles and an annual output of 8m kg, followed by a second mill with identical capacity and commissioned in 2022. The latest addition triples Sae-A Spinning’s original production volume. 

Global Sae-A continues to pursue investment opportunities in Latin America, influenced by the trend of nearshoring.

Costa Rica is one of the seven signatories of the United States-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), which include the US, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. 

The CAFTA-DR agreement took effect between the US and Costa Rica on 1 January 2009. Since then, almost all consumer and industrial products produced in Central America can enter the US without incurring tariffs. 

Sae-A Group’s portfolio also includes Sae-A Trading, an apparel manufacturer and exporter. Other ventures include fabric production through Wintex, sportswear via Tegra, fashion brands In The F and S&A, construction through Ssangyong Engineering & Construction, and packaging solutions from Tailim.