Traditional partner of Galicia, the Portuguese textile industry is facing an unprecedented crisis. More than a thousand Portuguese clothing companies have been declared insolvent over the past year and have closed their doors, reports The Voice of Galicia. Faced with this bleak situation, many Galician companies have decided to turn to Morocco, to relocate part of their activities there. Its geographical proximity, competitive labor costs and well-structured textile industry make the kingdom an attractive alternative for Galician companies.
The geographical proximity of Morocco allows for reduced transport times, reducing freight costs, in addition to leading to a much lower risk of supply disruption.
Read: A Chinese textile giant arrives in Morocco: 11,000 jobs in sight!
Today, the Moroccan textile sector is booming. This year, it generated revenue of around 45 billion dirhams ($4.5 billion), marking 7% growth from the previous year. Exports of textiles and clothing, mainly destined for the European Union, reached 32 billion dirhams (3.2 billion dollars), or 65% of total exports.
More than 1,600 companies operate in the Moroccan textile sector and employ nearly 190,000 employees. Their annual production is around 950,000 tonnes (+5% compared to 2023). Additionally, the Moroccan textile industry plays a key role in the national economy, representing approximately 15% of industrial GDP. In order to make its industry more competitive and innovative, Morocco has adopted advanced technologies (+12% in 2024) and is increasing investments in research and development.
To read: Textiles and automobiles: Morocco, Europe’s low-cost factory
Last year, Morocco became Inditex’s main supplier, ahead of Portugal and Turkey. At the end of the year, the Galician group had a total of 216 suppliers in Morocco, up to 18% more, compared to declines of 4% and 7.5% for Portugal and Turkey, respectively.
