Gildan expands manufacturing capacity in Honduras with new site

This week, Canadian company Gildan, owner of American Apparel, has opened a new manufacturing site in Honduras, located in Rio Nance VI, in the municipality of Choloma, Cortes.


La Prensa

The new textile plant in Choloma, where Gildan’s largest manufacturing complex is located, involved an investment of 2.3 million Honduran Lempira (around $98,400) and will create 1,200 jobs.

“This is our largest manufacturing hub, where we produce 60% of our product… We serve more specialized markets and this plant will allow us to continue innovating in the manufacturing of clothes,” said Raymundo Hernandez, general manager of operations of Gildan in Central America.

Gildan, which also manufactures clothes for Under Armour and New Balance, has more than 25,000 workers in the Valle de Sula, becoming one of the largest employers in Honduras.

The company has also donated 74 million Honduran Lempiras to different social projects in the education and health sectors, said Hernandez.

Gildan started operations in Honduras in 1997 with a sewing facility, and has now knitting, bleaching, dyeing, finishing and cutting facilities where it produces socks, sports clothes and underwear.

The new manufacturing site will help Gildan reduce the prices of American Apparel items. Gildan bought American Apparel last February after the LA-based company went bankrupt for the second time in November. After the $103 million acquisition, Gildan CEO Glenn Chamandy said a part of American Apparel products would continue to be manufactured in the US, while a third will be produced in Nicaragua and Honduras.

Gildan was founded in 1984 and is based in Montreal, Canada. According to its financial reports, the company expects net sales to increase by $160 million to $185 million this year, driven in particular by acquisitions completed in 2016 and at the start of 2017.

Translated by Barbara Santamaria

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