Gildan Activewear, which owns American Apparel, is among the several companies to have temporarily shifted their operations to the production of personal protective equipment (PPE) during the pandemic.
Notably, the company is now planning to make this as their permanent business.
The company, involved in the making of plain T-shirts, underwear and other basic garments, has decided to start with the manufacturing of non-medical masks and isolation gowns from 8 April to meet the global shortage of PPE.
It’s been receiving huge orders since then and sees a potential to supply to North America, which has relied on Asian imports for the garments.
More on this, Glenn Chamandy, Chief Executive Officer, Gildan Activewear, said “All of a sudden, it’s turned out to be much bigger than we anticipated. This could become part of our business as we go forward.”
Cancellation of events and the lockdown owing to the COVID-19 crisis have significantly affected company’s business – a 26 per cent sales drop in Q1 substantiates it.
Moreover, its Canadian-listed shares are also down by 49 per cent this year. The company is now working on to produce around 150 million masks and gowns in its production facility in Honduras and Nicaragua. Also, the US-based yarn spinning factory is also set to partly reopen for operations.