A new company making fleece fabric has been set up by a group of former VF Corp executives - and will base its operations at a factory closed by VF earlier this year as part of a major restructuring exercise.

The firm, called Activewear Inc, is investing $5 million in the business and will provide jobs for 405 workers.

"The state and the community have a rich history of producing quality products," said Ken Schrang, president of the new company. "The combination of a trained workforce and the can-do attitude from the state and community led us to believe that Virginia and, specifically, Henry County is the best place for us to do business."