USA: Galey & Lord To Shut Down Canadian Denim Production
The Drummondville, Quebec factory will cease making the fabric in about four months' time, cutting its workforce to 215 staff.
It will, however, continue to produce ring spun yarn.
According to CEO Arthur Wiener, the shutdown comes as a result of low-cost imports from Asia creating excess capacity for denim.
"Unfortunately, this capacity must be rationalised," he said.
"We appreciate the contribution that the Drummondville workforce has made to the company and we deeply regret that this overcapacity, coupled with economic conditions, has forced us to make this decision."
Galey & Lord, based in North Carolina, is a leading global manufacturer of textiles for sportswear, including cotton, denim and corduroy.
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