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Contingency plans by Gildan to minimize impact of earthquake
16
Jan '10
Gildan Activewear Inc. is currently obtaining information in order to fully evaluate the impact of the Haiti earthquake on the operations and employees of its sub-contractors in the country.

Gildan has no vertically-integrated manufacturing facilities in Haiti, but uses third party contractors to sew the majority of the fabric produced at its Dominican Republic textile facility. Initial indications are that two out of the three contractor facilities used by Gildan are intact, while the third and smallest contractor facility has suffered substantial damage. The Company's textile and sewing facilities in the Dominican Republic have not been affected by the earthquake.

Gildan's Dominican Republic / Haiti manufacturing hub is currently dedicated to supplying a portion of the Company's basic T-shirt requirements for the U.S. screenprint market. The Company is in a strong inventory position and is immediately implementing contingency plans to minimize likely short-term disruption of contractor production in Haiti by increasing production at its integrated sewing facilities in the Dominican Republic, Honduras and Nicaragua, in order to continue to be well positioned to service demand in the peak summer selling season for T-shirts. The supply of products for the Company's retail customers is not affected by the situation in Haiti.

The Company will provide a further analysis and update as soon as it has more complete information on the status of its Haitian sewing contractors and the country logistics and infrastructure. Most importantly, Gildan's management wishes to express its concern for the well-being of the people of Haiti and is committedto playing a leadership role in efforts to provide humanitarian aid to the country.

Gildan is a vertically-integrated marketer and manufacturer of quality branded basic apparel. The Company is the leading supplier of activewear for the screenprint channel in the U.S. and Canada. It is also a leading supplier to this market in Europe, and is establishing a growing presence in Mexico and the Asia-Pacific region.

Gildan Activewear Inc


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