cost-competitive in the global marketplace, Gildan Activewear Inc., Montreal, reports it soon will
close and downsize textile and hosiery facilities in Canada and the United States, resulting in the
loss of approximately 540 jobs. The company plans to shift production capacity to its offshore
facilities in Honduras and the Dominican Republic.
During the next three to four months, the company will close and downsize its sock
production operations in Mount Airy, N.C., and Hillsville, Va., impacting approximately 335
employees in total. In December 2006, Gildan will shutter its Canadian textile manufacturing plant
in Valleyfield, Quebec, resulting in downsizing at its knitting facility in Montreal, Quebec. Those
actions will affect approximately 155 and 50 employees at the Valleyfield and Montreal locations,
respectively.
In addition, the closure of a Montreal distribution center at the end of October 2006 will
result in the elimination of six jobs. The company will outsource distribution operations in Canada
to a third-party logistics partner.
Gildan has pledged to “make every effort to alleviate the impact of this transition for the
employees whose positions are eliminated.”
The branded basic apparel manufacturer and marketer’s recent offshore investments include
the expansion of its manufacturing complex in Honduras, including the addition of a large-scale
athletic sock facility; as well as the establishment of a new textile plant in the Dominican
Republic. The company recently reduced production and cut more than 60 jobs at plants in Quebec and
Bombay, N.Y., as part of a strategy to grow large-scale basic T-shirt production in the Dominican
Republic and Honduras.
October 3, 2006
