Gildan revealed plans for the construction of a new textile facility in Honduras. The Canadian manufacturer, which produces apparel, hosiery and shapewear under its own Gildan, Gold Toe and Anvil brands, as well as licensed product for Under Armour, New Balance and Mossy Oak, said the new facility in Honduras’ Rio Nance complex is already in development. The new plant will bridge the capacity requirements until the company’s planned Costa Rica facility begins producing in fiscal 2017.
The Honduras production center will be essential to the company’s planned sales growth and will help optimize manufacturing efficiencies at its other facilities located in Central America and the Caribbean Basin. Combined, the Honduras and Costa Rica plants are projected to increase textile capacity by 40 percent and generate an estimated $1 billion in extra revenue, Gildan reported.
The company saw net sales in third quarter 2014 increase 12.9% to $693.8 million, up from $614.3 million in third quarter 2013, and it anticipates fourth quarter results to reach a record $700 million. Fueling those increases is the company’s growing underwear business. Currently Gildan is the third-largest maker of men’s underwear after Fruit of the Loom and Hanesbrand. The company is already doubling its underwear capacity and expects to grow its market share by 2015.
During a conference call to discuss financial results, Gildan chief executive Glenn Chamandy, said, “Our ability and our success so far in the share we’ve gained in such a short amount of time just gives you an idea of the huge momentum we have, our capabilities, our cost structure, our quality message, so we’re very excited about our growth in underwear as we go forward in 2015.”