Gildan Activewear said the investment will support its projected sales growth

Gildan Activewear said the investment will support its projected sales growth

Apparel company Gildan Activewear is to modernise and expand its two CanAm yarn-spinning facilities in the US and has revealed plans to build a new factory in the country.

During the first quarter of fiscal 2013, Gildan Activewear completed its acquisition of the remaining 50% of CanAm Yarns, its yarn-spinning joint venture. 

The T-shirt and sock manufacturer said its investment in vertically-integrated yarn-spinning will support its projected sales growth.

It added that it will continue to invest in global low-cost manufacturing technology and product technology, including ring-spun yarn technology. This will provide enhanced quality features and qualify for duty-free access to US markets under DR-CAFTA, which requires US yarn or yarn spun in other DR-CAFTA member countries.

Ring-spun products will be utilised as part of the company's branded apparel products.

The news comes after Gildan Activewear saw its fourth quarter net earnings jump last week after the group benefited from lower cotton costs, and higher printwear unit sales volume. 

It was also helped by a more favourable product-mix and higher selling prices for Branded Apparel, and the initial accretion from its acquisition of Anvil Holdings.