Gildan Yarns, a subsidiary of Canadian-based Gildan Activewear Inc., will expand its existing yarn spinning manufacturing facilities in Bladen and Rowan counties and establish a new yarn spinning facility in Davie County, North Carolina
The company plans to invest more than $250 million to build a yarn spinning facility behind its Salisbury location, which is currently under construction, and another one in Mocksville, as well as to expand and renovate its Clarkton, North Carolina location. With these projects, Gildan expects to create more than 500 new jobs in North Carolina by the end of 2016.
“Our investments in our yarn spinning operations will support our projected sales growth and further reinforce our position as a global low-cost manufacturer. The state-of-the-art product technology to be used in these facilities will continue to differentiate the product quality of Gildan branded products,” said Gildan Yarns President Chuck Ward. “The State of North Carolina provides us with a qualified textile workforce, competitive energy rates and a good transportation network, which are all central to our expansion projects.”
“Apparel manufacturers like Gildan are further investing in North American operations and North Carolina is just the place for their company to succeed with that,” said Gov. Pat McCrory. “The additional skilled manufacturing jobs that they’ll create will strengthen the economy of these counties and demonstrates the strong talent pool and attractive quality of life that characterizes this region of the state.”
“Gildan is a strong national brand and we’re proud of the footprint they have throughout North Carolina,” said Commerce Secretary Sharon Decker. “We appreciate the Gildan management team for renewing their commitment to North Carolina and know they’ll find the quality workforce they need to succeed.”
The project was made possible in part by an award to Gildan Yarns from the state Job Development Investment Grant program, as voted by the state Economic Investment Committee. Receipt of the award is based on proof of job creation and other performance requirements. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state, and which would not be undertaken in North Carolina without the grant.
Under the terms of the company’s JDIG award, Gildan is eligible to receive up to 12 annual grants based upon 50 percent of the state personal income tax withholdings from the eligible new jobs created since the date of the initial award. Receipt of each annual grant is based on state-certified proof that the company has fulfilled incremental job creation and maintenance requirements. Over 12 years, the JDIG award could yield aggregate benefits to Gildan of up to $3.49 million upon creation of 501 new jobs.
In addition, up to $617,000 in funds from the company’s JDIG award could be added to the state’s Utility Fund for infrastructure improvements in economically distressed counties. Other partners who assisted with this announcement include: the N.C. Department of Commerce, N.C. Community Colleges, N.C. Department of Transportation, Golden LEAF Foundation, Rowan County, Bladen County, Davie County, Town of Mocksville, Town of Clarkton, Town of Granite Quarry, Salisbury-Rowan Utilities, Duke Energy, RowanWORKS Economic Development, Davie County Economic Development Commission and EnergyUnited.