Canadian t-shirt producer Gildan Activewear has announced plans to build a large knitting plant in the Dominican Republic to expand its existing low-cost manufacturing base in the country. The Montreal-based company announced it had purchased an 18-million square foot tract of land in the DR where it plans to construct a state-of-the-art knitting, bleaching and cutting facility. Fabric manufactured in the DR would be sewn both in the Dominican Republic and in Haiti, where Gildan also operates an integrated sewing plant and has established relationships with external contractors. Gildan plans to complete construction of the first DR facility in the next 12 months and step up to full capacity in 24-30 months. The total capital cost of the DR facility is estimated to be approximately $60 million, to be spent primarily in the fiscal years of 2004 and 2005. The venture is part of the company’s scheme to gradually add a retail brand over the next five years to assure its long-term growth. Gildan currently sells its t-shirts and sweatshirts to other companies who print, color and embroider them for sale to retail outlets. Greg Chamandy, company chairman and chief executive, said retail sales in the US account for US$34 billion a year, of which 70% is sold through mass merchandisers like Wal-Mart.
http://ir.gildan.com/news/20031204-123908.cfm?releasetype=Corporate