Gildan Activewear Inc., through its yarn-spinning subsidiary CanAm Yarns, plans to invest more than $50 million to open a ring-spinning facility in Salisbury, North Carolina, with estimates of creating approximately 170 jobs in the region over the next two years.

Gildan is a marketer and vertically-integrated manufacturer of quality-branded basic family apparel and is rapidly expanding its presence in the U.S. and international markets.

The project was made possible in part by a state Job Development Investment Grant, said Gov. Bev Perdue. “North Carolina continues to be a top choice for companies looking to expand or relocate their operations,” said Gov. Perdue. “North Carolina is a tremendous place to do business and we have a knowledgeable and skilled workforce, especially when it comes to our heritage industries like textiles.”

“We appreciate the cooperation and assistance we have received from the North Carolina Department of Commerce and Rowan County elected and appointed officials during our site selection process,” commented Gildan’s Chuck Ward, senior vice president, Yarn Spinning.

Gildan currently employs 100 people at a yarn-spinning facility operated by CanAm in Bladen County, and 294 people at one of its distribution centers in Rockingham County, North Carolina.

“This is a great project for Rowan County,” said Sen. Andrew Brock. “With North Carolina as a long-time leader in textiles, Gildan will easily find the skilled workforce they need.”

As an incentive the state Economic Investment Committee awarded the firm a Job Development Investment Grant. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and would not be undertaken in North Carolina without the grant.

Under the terms of the JDIG, the company is eligible to receive a grant equal to 65 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the first 10 years of operations in which the company meets annual performance targets. If CanAm meets the targets called for under the agreement and sustains them for 10 years, the JDIG could yield $1.55 million in maximum benefits for the company.