Gildan Activewear, a Canadian clothing brand, is set to begin its textile and sewing operations in Bangladesh as it has purchased a large land last month for $45 million.
The underwear, T-shirt and sock maker said it is expanding its global manufacturing footprint by building a large complex in Bangladesh to complement its existing operations, reports the Star, a Canadian newspaper, reports bdnews24.com.
The company has purchased a large land parcel last month for $45 million to build a vertically integrated manufacturing plant that would expand its textile and sewing operations, according to the report. The large multi-plant complex would be large enough to support more than $500 million in annual sales after opening at the end of 2021. It expects to spend about $175 million on capital expenditures this year, up from its previous guidance of $125 million.
“The company believes the build-out of a large-scale manufacturing hub in Southeast Asia will significantly enhance its positioning to service international markets and support other key sales growth drivers,” it said in a news release. The announcement came as Montreal-based Gildan reported that its net income for the three months ended Mar 31 decreased to $22.7m or 11 cents per diluted share, from $67.9m or 31 cents per share a year.