Gildan Activewear Inc. has announced the completion of the purchase of a sizable land parcel in Bangladesh as part of its new capacity expansion initiative to develop large-scale vertically-integrated manufacturing in South-East Asia for the expected sales growth.
On April 9 Gildan completed the purchase of land in Bangladesh which is intended to be used to expand its global textile and sewing operations. The company plans consist of the development of a large multi-plant manufacturing complex which is currently expected to include two large textile facilities and related sewing operations. Once fully operational, this complex is expected to provide capacity to service over $500 million in sales. Over the next 24 months, the company plans to construct and develop the first textile facility at the complex. Initial production at the facility is expected to start in the latter part of 2021.
The company believes that the large-scale manufacturing hub in South-East Asia will significantly enhance its positioning to service international markets and support other key sales growth drivers.
Gildan is a leading manufacturer of everyday basic apparel which markets its products in North America, Europe, Asia-Pacific and Latin America under a diversified portfolio of company-owned brands. The company’s product offering includes activewear, underwear, socks, hosiery and legwear products sold to a broad range of customers, including wholesale distributors, screenprinters or embellishers, as well as to retailers that sell to consumers through their physical stores and/or e-commerce platforms. In addition, Gildan sells directly through its own direct-to-consumer platforms.
Gildan owns and operates vertically-integrated, large-scale manufacturing facilities primarily located in Central America, the Caribbean basin, North America, and Bangladesh. With over 52,000 employees worldwide the company operates with a strong commitment to industry-leading labour and environmental practices throughout its supply chain in accordance with its comprehensive Genuine Responsibility program embedded in its long-term business strategy.
With the completion of the land acquisition in Bangladesh for approximately $45 million in cash, the company has updated its capital expenditure projection to be approximately $175 million compared to its previous guidance of $125 million.
