Sport shirts maker plans to close textile facilities Montreal & Bombay
28 Mar '07
3 min read
Gildan Activewear Inc announced that it plans to close its two remaining textile facilities in Montreal, Canada, as well as its cutting facility in Bombay, N.Y., in the fourth quarter of the current fiscal year. Two sewing facilities in Mexico, which are supplied with fabric from Gildan's Canadian textile operations, will be closed immediately.
Subsequent to the above closures, all of Gildan's vertically-integrated manufacturing for T-shirts, fleece, sport shirts and underwear will be consolidated into the Company's manufacturing hubs in Central America and the Caribbean Basin, where the Company is investing in major capacity expansion projects.
Concurrent with the restructuring of the Canadian textile operations, Gildan will relocate its corporate office, which is currently located in the same building as its Montreal knitting facility, into leased premises in the Montreal area. Approximately 465 employees in Canada and the U.S. and 1,365 employees in Mexico will be affected by the manufacturing restructuring.
The Company will make every effort to alleviate the impact of the closures on all of its employees in all of the communities affected. In addition, the Company will work closely with the Fair Labor Association and both North American and Mexican NGO's to ensure that best practices are followed in managing the closure of its Mexican sewing operations.
Gildan recognizes that the employees in the operations which are being closed have contributed significantly to the Company's growth and success in recent years, and regrets that the relocation of its production capacity to its offshore manufacturing hubs is unavoidable in order to be globally cost-competitive in the intensely competitive North American apparel industry.
marketing@alchempro.com
