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Canada's Gildan Activewear to move out of Mexico

01
Nov '19
Pic: Gildan Activewear
Pic: Gildan Activewear
Canada’s Gildan Activewear Inc. yesterday announced moving out of Mexico, where it employs around 1,700. It will relocate equipment there to its cheaper production hubs in Central America and the Caribbean, it said in its results report for the third quarter. It is also building a major production complex in Bangladesh to serve European and Chinese customers.

Mexico accounts for 8-9 per cent of Gildan’s global production. The equipment transfer will reportedly take less than six months and result in higher overall capacity.

Montreal-based Gildan has built a global production chain ranging from yarn-spinning to apparel-stitching.

“As we looked at our cost structure in the future, we feel that we can achieve a much lower cost by limiting the facilities,” a news agency report quoted chief executive officer Glenn Chamandy as telling analysts on the company’s earnings call.

Fibre2Fashion News Desk (DS)


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