The Textile Cluster of Northern Portugal and Its Importance

published on 08 October 2025

When talking about the textile industry in Portugal, it is impossible to ignore the fundamental role of the Northern region, more specifically, the Ave and Cávado valleys. These two valleys form the beating heart of the Portuguese textile sector, where tradition, innovation, and know-how have intersected for decades to generate employment, exports, and international prestige.

In this article, we will present how this cluster was formed and how it has developed over the past decades up to the present day.

What is a cluster and why is it important?

Cluster image example
Cluster image example

A business cluster is a grouping of different companies that are connected through their business relationships. These involve organizations from the same sector or industry that collaborate with each other to achieve common objectives.

This collaboration encompasses the exchange of knowledge, experience, and resources, as well as the undertaking of joint activities such as research and development, marketing, and export.

In this way, a business cluster can form spontaneously or be initiated by governments, business organizations, or other entities.

They are considered extremely important for regional economic development and the competitiveness of companies, as they allow them to share resources and knowledge, generate synergies, and create new business opportunities.

A cluster with deep roots

Textile development in the region dates back to the 19th century, with the emergence of the first industrial units, especially in the Ave Valley, an area with a high concentration of labor and access to water resources, essential for the operation of looms and finishing processes. Cities such as Guimarães, Famalicão, Vizela, Barcelos, and Santo Tirso became centers of production par excellence.

The Cávado Valley, with emphasis on Braga and Barcelos, also established itself as an essential area, especially in clothing and apparel production. Together, these regions concentrate one of the highest industrial densities in Europe in the textile and clothing sector.

80% of companies are located in the cluster that extends around Famalicão

Regional distribution of textile companies
Regional distribution of textile companies

Innovation and sustainability at the heart of transformation

Despite the various crises that have affected the industry over the decades, the northern textile cluster has been able to adapt. Companies have invested in technology, product differentiation, and design, shifting from a mass production logic to a value-added model. The result is visible: international brands increasingly trust the quality "Made in Portugal."

Furthermore, sustainability has become one of the strategic pillars. Many companies in the region now focus on the circular economy, textile recycling, eco-friendly raw materials, and energy-efficient production.

A strong and collaborative ecosystem

This cluster stands out not only for its companies but is also supported by a true research ecosystem: technology centers (such as CITEVE and CENTI), universities (such as the University of Minho), and institutions supporting innovation and internationalization.

This collaborative environment facilitates knowledge transfer and drives the development of new products and technical textile solutions that the industry increasingly requires.

A driver of exports and national identity

The majority of Portuguese textile production is exported, and a large part of this production comes from the North of the country. This cluster is therefore not only a driving force of the national economy but also a symbol of industrial identity and resilience. It is here that tradition and the future meet every day, in the threads, fabrics, and products that come to life in the region's factories.

The North of Portugal, particularly the metropolitan areas of Porto and Braga, has established itself as one of the main textile production hubs nationally and internationally. Northern Portugal stands out for its strong industrial infrastructure, which includes everything from small family businesses to large corporate groups with a global reach.

Exports of textile and clothing from Portugal
Exports of textile and clothing from Portugal

The know-how acquired over decades, combined with professional qualification and the availability of endogenous resources, allows this region to remain at the forefront of the textile industry. It is the technical skills in weaving, spinning, finishing, and textile design that ensure the sector's competitiveness.

Conclusion

The textile cluster of the Ave and Cávado Valleys is much more than a collection of factories; it is an example of how industrial heritage can give rise to a competitive and sustainable model, capable of standing out on the global stage. In this territory, the industry remains alive, innovative, and deeply connected to the culture and future of the country.

In summary, the North of Portugal is a clear example of how tradition and innovation can go hand in hand, resulting in a strong and competitive textile cluster that stands out for its quality, sustainability, and adaptability.

Investing in the Northern Portugal Textile Cluster not only ensures access to a highly skilled market but also bets on a future of growth, innovation, and sustainability for the textile industry.

Sources:

- Gabinete de Estratégia e Estudos (GEE)

https://www.salesforce.com/br/blog/clusters/

https://ominho.pt/maior-cluster-de-empresas-texteis-na-europa-e-ao-redor-de-famalicao/

http://repositorium.sdum.uminho.pt/bitstream/1822/65246/1/DC11_8.pdf

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