T-shirt manufacturer Gildan Activewear Inc has formed a 50-50 joint venture with Frontier Spinning Mills Inc to acquire the assets of a yarn-spinning facility in Georgia, USA.

The Cedartown-based facility, which houses equipment on the forefront of yarn-spinning technology, was bought for US$12.5 million by the two companies.

Output from the facility, a strategically-located and low cost yarn source, is expected to be entirely made up of Gildan's integrated fabric manufacturing operations, and could supply materials to the company's Honduran operation in Rio Nance.

Gildan is a Montreal-based company, while Frontier Spinning Mills is registered in Sanford, North Carolina.