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Gildan, Inc. to Close Two Sock Manufacturing Plants

Monday 04th of June 2007 12:43:31 AM

Glidan, Inc., which primarily manufactures T-Shirts, purchased Kentucky Derby Hosiery last year as a way to break into the underwear and sock market. Now, the company, which will also be closing t-shirt manufacturing plants in Canada, US, and Mexico, has decided to close two sock plants located in Mount Airy, North Carolina, USA in order to manufacture socks outside the US.

The decision to close the plants has been a shock for some, but not to others who have been closely watching Gildan, Inc. ever since it made its decision to move some of its T-Shirts manufacturing plants. Citing reduced cost in manufacturing and labour, the company claims it needs to save as much money as possible in order to stay competitive. "When Gildan purchased the facilities it was a question of how long would it be before they would close them. Their reputation is to outsource and do off-shore manufacturing as much as possible," said city manager Don Brookshire. He also said, "It has not been one of our landmark days. It's bad for us to lose those jobs. There are not a lot of other manufacturing jobs in our community today."

Gildan, Inc., meanwhile, is standing by its decisions. "It was consistent with our strategy to consolidate our sock production to our facilities offshore," said company spokesperson Genevieve Gosselin. The company has another sock plant in Hillsville, Virginia, USA that will remain open.

Moving manufacturing plants to other countries that offer lower manufacturing costs and labour is nothing new. But for those who are left behind, it can be devastating. "This hurts the whole area. Not a lot of job opportunities around here right now. We have part-time jobs at Wal-Mart and fast-food restaurants," said local resident, Bob White.

(c)Fergus Currie, www.sxc.hu

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