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Gildan Closes Plants to Cut Costs
Wednesday 28th of March 2007 12:20:46 AM
In a move that is similar to that of Burberry, Canadian clothing company, Gildan Activewear, Inc., will be closing plants in Canada, New York, USA, and Mexico and opening two new plants in Central America and the Caribbean basin. The company said that cost was the reason for the move and plant closings. “Really the reason for closure is we need to have a lower cost base in order to be competitive with this global market,” said Executive Vice President Cam Gentile.Gildan Activewear, which manufactures T-shirts, underwear, and sportswear, announced the lay-off of about 1,800 employees. “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,” said the company in a statement.
New plants will be taking over the product of T-shirts and other items, while a plant in Honduras will continue to manufacture socks. “The company intends to partially utilise these manufacturing efficiencies, as well as projected efficiencies from ramping up its new sock manufacturing facility in Honduras, to continue to support its strategy to penetrate the mass-market retail channel, as well as to build on its leadership position in the wholesale screenprint channel,” said the company in their statement.
How this will affect the overall economy is still in the air. While most employees will be receiving severance packages, they will now have to find new jobs. The retail clothing industry is very competitive with more jobs being outsourced to other countries each day. Burberry, a British clothing manufacturer, closed one of their manufacturing plants a few months ago. The move caused much outrage by those who worked for Burberry.
(c)Daniel Duchon, www.sxc.hu
Good all round. Will order again.
Good all round. Will order again.
the chance to review the image is great for checking everything over one last time before printing. the time between reviewing the print and delivery was another positive, taking only a couple of days. my friends were really pleased with the finished items. unfortunately i was out when the courier called. he didn't note the date or time of his attempted delivery on his card and he hadn't filled in when or if he would attempt delivery again. on repeatedly phoning the company on a friday between 4:50 and 6 i got no answer. i then tried again on the monday morning, but once again i got no answer. after phoning clothes2order they resolved everything. i realise this is outwith the control of clothes2order, but it soured an otherwise excellent service.