Gildan Activewear to invest in North Carolina yarn mill

By

Jennifer Braun

Published
Oct 24, 2019

Canadian manufacturer Gildan Activewear is investing in its yarn spinning mill in Eden, announcing the opening of its fifth state-of-the-art mill in North Carolina.

 
The $5 million investment will contribute 85 jobs in Eden over the next year.
 
“We are very pleased to expand our operations in the Eden community and to invest in a new yarn spinning facility,” said Chuck Ward, president of Gildan Yarns, the yarn spinning division of Gildan Activewear. “This will be the company’s seventh yarn spinning facility in the US.”

The Montreal-based company received a performance-based grant of $250,000 from the One North Carolina Fund, which will help facilitate Gildan Yarn’s operation in Rockingham County, if Gildan meets the necessary job creation and capital investment targets. 
 
“Gildan Yarns’ decision further solidifies our leadership in the textile industry,” added North Carolina commerce secretary, Anthony M. Copeland.

“North Carolina has more textile manufacturers than any other state and a world-class pipeline of textile talent to continue Gildan’s global operations.”
 
Earlier this week, Gildan cut its full-year financial guidance, following disappointing preliminary third quarter sales, including a $50 million sales shortfall. 
 
For the full-year 2019, Gildan now expects sales to decrease in the low-single-digits compared to the prior year, while diluted EPS is projected to be in the range of $1.50 to $1.55.
 
Gildan’s previously reported guidance projected mid-single-digit sales growth and diluted EPS in the range of $1.80 to $1.85.