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Gildan Activewear to close Canadian & US manufacturing operations

Sep '06
Gildan Activewear Inc announced that in December 2006 it is closing its textile manufacturing facility in Valleyfield, Quebec, which will also result in downsizing of its knitting facility in Montreal, Quebec.

Concurrently, the Company also announced the closure and downsizing of sock manufacturing capacity located in Mount Airy, North Carolina and Hillsville, Virginia, which will be undertaken over the next three to four months.

Approximately 155 employees at the Valleyfield facility and approximately 50 employees at the Montreal knitting facility will be affected by the rationalization of the Canadian textile facilities.

Approximately 335 positions in the U.S. will be eliminated at this time as a result of the rationalization of the U.S. hosiery operations.

Gildan sincerely regrets the impact of these announcements on its Canadian and U.S. employees, their families and their communities.

The Company will treat all employees fairly and will make every effort to alleviate the impact of this transition for the employees whose positions are being eliminated.

Although the Company recognizes that its work force in its Canadian and U.S. operations have many years of experience in textiles and hosiery manufacturing, the relocation of production capacity to the Company's offshore manufacturing hubs in Central America and the Caribbean Basin is required in order to continue to be cost-competitive against Asian imports and other global producers in the intensely competitive North American apparel industry.

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