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Gildan to create 170 jobs in Rowan County
Story Date: 12/20/2012
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Source: PRESS RELEASE, 12/19/12
Gov. Bev Perdue announced today that Gildan Activewear Inc. (“Gildan”), through its yarn-spinning subsidiary, CanAm Yarns LLC (“CanAm”), plans to open a new ring-spinning facility in Salisbury to support its projected growth. 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 company plans to create approximately 170 jobs over the next two years and invest over $50 million. The project was made possible in part by a state Job Development Investment Grant.
“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.”
CanAm is a limited liability company formed in October 2003 as a joint venture between Frontier Spinning Mills, Inc. and Gildan. Recently, Gildan purchased Frontier’s interest and became the sole owner of CanAm. The company manufactures yarn which it sells exclusively to Gildan for its knitting facilities worldwide.
“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.
Compensation will vary by job function, but the average annual payroll will be more than $6.1 million, plus benefits. The Rowan County average wage is $36,712.
“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.”
“Our historic investments in workforce development and education continue to pay dividends,” said Rep. Harry Warren. “Today’s manufacturers need a trained workforce and Gildan will certainly find that here in North Carolina.”
To help facilitate this project, the state Economic Investment Committee today voted to award a Job Development Investment Grant (JDIG) to CanAm. 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.
In addition, up to $275,000 could be added to the state’s Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in the state’s more economically prosperous counties such as Rowan, 15 percent of the grant is allocated to the Utility Fund to encourage economic development in less prosperous counties.
Other partners who assisted with this project include: the N.C. Department of Commerce, N.C. Community Colleges, Rowan County, RowanWORKS and Duke Energy.
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