Gilden Activewear, a leading manufacturer of everyday basic apparel recently purchased a sizeable land in Bangladesh for its project to develop a large-scale vertically-integrated manufacturing unit in South-east Asia. The company’s plan includes development of a large multi-plant manufacturing complex including two large textile facilities and related sewing operations. Once fully operational, this complex is expected to provide capacity to service over $500 million in sales.
Over the next 24 months, the company plans to construct and develop the first textile facility at the complex. Initial production at the facility is expected to start in the latter part of 2021. With the completion of the land acquisition in Bangladesh for approximately $45 million in cash, the company has updated its capital expenditure projection to be approximately $175 million compared to its previous guidance of $125 million. Consequently, free cash flow generation for 2019 is now expected to be in the range of $300 to $350 million compared to $350 to $400 million previously.