Textile Industry Shift: Galician Companies Move Production from Portugal to Morocco

A traditional partner of Galicia, the Portuguese textile industry is facing an unprecedented crisis. More than a thousand Portuguese garment companies have been declared insolvent over the past year and have closed their doors, reports La Voz de Galicia. Faced with this unfavorable situation, many Galician companies have decided to turn to Morocco, to relocate part of their activities there. Its geographical proximity, its competitive labor costs and its well-structured textile industry make the kingdom an attractive alternative for Galician companies.

Morocco’s geographical proximity makes it possible to reduce transport times, reducing freight costs, in addition to leading to a much lower risk of supply disruption.

Today, the Moroccan textile sector is booming. This year, it generated a turnover of around 45 billion dirhams ($4.5 billion), marking a 7% growth compared to the previous year. Textile and clothing exports, mainly destined for the European Union, reached 32 billion dirhams ($3.2 billion), 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 tons (+5% compared to 2023). In addition, the Moroccan textile industry plays a key role in the national economy, representing around 15% of industrial GDP. In order to make its industry more competitive and innovative, Morocco has adopted advanced technologies (+12% in 2024) and is multiplying investments in research and development.

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.