A Canadian company that makes T-shirts, underwear, socks and other clothing plans to spend $20 million to expand a distribution center in Eden, N.C.
But the expansion is contingent on Gildan Activewear receiving economic incentives to help offset the cost, said Genevieve Gosselin, a spokeswoman for the Montreal-based company.
She declined to discuss details of potential incentives, but added: "We're very positive that incentives will be approved."
Charles Winkler, a spokesman with the N.C. Department of Commerce, declined to comment on possible incentives for Gildan.
Gildan's plans call for increasing capacity about 40 percent at the 650,000 square-foot facility in Rockingham County, about 100 miles northwest of Raleigh. The operation distributes T-shirts, polo shirts and other products to wholesale customers, and employs about 280 people.
"We are expecting to grow our business, which will create jobs in future years," Gosselin said, without providing specific hiring targets.
If the expansion moves forward, it's expected to be completed in 2011.
Gildan is seeing increasing demand for its clothing as the economy recovers. The company announced today that it expects this year's sales will reach $1.3 billion, up about 25 percent from fiscal year 2009 sales and ahead of previous projections.
Gildan's shares rose $1.39 to $30.98 on the New York Stock Exchange today. The stock has nearly tripled in the past year.
While North Carolina has lost thousands of textile jobs as work shifts to cheaper countries, the state remains a hub for the industry.
Gildan also has distribution centers in Charleston, S.C., and Martinsville, Va., and a yarn factory in Clarkton, N.C. The company recently spent $34.5 million to expand a sock factory in Honduras.