Hanesbrands Inc.
1000 East Hanes Mill Road
Winston-Salem, NC 27105
FOR IMMEDIATE RELEASE
1000 East Hanes Mill Road
Winston-Salem, NC 27105
FOR IMMEDIATE RELEASE
| News Media, contact: | Matt Hall, (336) 519 3386 |
| Analysts and Investors, contact: | Brian Lantz, (336) 519-7130 |
HANESBRANDS INC. ADVANCES ITS ASIAN SUPPLY CHAIN STRATEGY WITH AGREEMENT TO ACQUIRE SEWING OPERATION IN THAILAND
Acquired Operation Would be Hanesbrands First Company-Owned Production Facility in Asia
Acquired Operation Would be Hanesbrands First Company-Owned Production Facility in Asia
WINSTON-SALEM, N.C. (Oct. 26, 2006) – Hanesbrands Inc. (NYSE:HBI), a leading marketer of innerwear, outerwear and hosiery apparel, today announced that it has entered into a definitive agreement to buy a sewing plant in Chonburi, Thailand.
The Chonburi sewing operation, which now operates as part of Goldindo International (Thailand) Co., Ltd., would be Hanesbrands first Asian sewing production facility that is owned by the company. The 93,000-square-foot facility, located 50 miles southeast of Bangkok, has approximately 1,600 employees. It will assemble bras under various company brands, including Hanes, Playtex and Bali, that are sold primarily in the U.S. market.
Terms of the plant purchase will not be made public. Goldindo is a contract supplier to Hanesbrands, and Goldindo’s Chonburi plant currently makes bras for Hanesbrands. The purchase is expected to close before the end of November.
“Adding company-owned sewing capability in Asia is a key component of our ongoing efforts to create a low-cost global supply chain,” said Hanesbrands Chief Executive Officer Richard A. Noll. “We have made significant progress in our multi-year supply chain initiative by driving cost-reduction and flexibility improvements in the Western Hemisphere. We also are moving quickly to develop a greater presence for our supply chain in Asia.”
Hanesbrands sources raw materials and finished products in the emerging Asian market through its sourcing operations based in Hong Kong and with offices in China, India, Indonesia, Thailand and Turkey. Hanesbrands sells apparel products in China, Hong Kong, India, Japan, Korea and the Philippines.
“The acquisition of the Thailand sewing plant is an important building block for our Asian supply chain base,” said Gerald Evans, Hanesbrands executive vice president and chief global supply chain officer. “We look forward to adding the Chonburi sewing plant to our supply chain. The operation has an established, well-trained work force and seasoned management team with whom we have already partnered to source products. This is a great opportunity to accelerate aspects of our Asian supply chain strategy.”
Hanesbrands Inc.
Hanesbrands Inc. is a leading marketer of innerwear, outerwear and hosiery apparel under strong consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries. More information about the company may be found on the Hanesbrands internet Web site at http://www.hanesbrands.com.
Cautionary Statement Concerning Forward-Looking Statements
All statements contained in this press release, other than statements of historical fact, are forward-looking statements, including those regarding our launch as an independent company and the benefits expected from that launch. These statements speak only as of the date of this press release, are based on our current plans and expectations, and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to our ability to migrate our production and manufacturing operations to lower-cost centers around the world; the highly competitive and evolving nature of the industry in which we compete; our ability to effectively manage our inventory and reduce inventory reserves; any loss of or reduction in sales to any of our top customers; risks associated with our foreign operations or foreign supply sources; the impact of economic and business conditions and industry trends in the countries in which we operate our supply chain; any failure by us to protect against dramatic changes in the volatile market price of cotton; our substantial debt and debt-service requirements that restrict our operating and financial flexibility and impose significant interest and financing costs; future financial performance, including availability, terms and deployment of capital; and the outcome of any pending or threatened litigation. Further information about these matters can be found in our Securities and Exchange Commission filings. We expressly disclaim any intent or obligation to update these forward-looking statements, other than as required by law.
The Chonburi sewing operation, which now operates as part of Goldindo International (Thailand) Co., Ltd., would be Hanesbrands first Asian sewing production facility that is owned by the company. The 93,000-square-foot facility, located 50 miles southeast of Bangkok, has approximately 1,600 employees. It will assemble bras under various company brands, including Hanes, Playtex and Bali, that are sold primarily in the U.S. market.
Terms of the plant purchase will not be made public. Goldindo is a contract supplier to Hanesbrands, and Goldindo’s Chonburi plant currently makes bras for Hanesbrands. The purchase is expected to close before the end of November.
“Adding company-owned sewing capability in Asia is a key component of our ongoing efforts to create a low-cost global supply chain,” said Hanesbrands Chief Executive Officer Richard A. Noll. “We have made significant progress in our multi-year supply chain initiative by driving cost-reduction and flexibility improvements in the Western Hemisphere. We also are moving quickly to develop a greater presence for our supply chain in Asia.”
Hanesbrands sources raw materials and finished products in the emerging Asian market through its sourcing operations based in Hong Kong and with offices in China, India, Indonesia, Thailand and Turkey. Hanesbrands sells apparel products in China, Hong Kong, India, Japan, Korea and the Philippines.
“The acquisition of the Thailand sewing plant is an important building block for our Asian supply chain base,” said Gerald Evans, Hanesbrands executive vice president and chief global supply chain officer. “We look forward to adding the Chonburi sewing plant to our supply chain. The operation has an established, well-trained work force and seasoned management team with whom we have already partnered to source products. This is a great opportunity to accelerate aspects of our Asian supply chain strategy.”
Hanesbrands Inc.
Hanesbrands Inc. is a leading marketer of innerwear, outerwear and hosiery apparel under strong consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries. More information about the company may be found on the Hanesbrands internet Web site at http://www.hanesbrands.com.
Cautionary Statement Concerning Forward-Looking Statements
All statements contained in this press release, other than statements of historical fact, are forward-looking statements, including those regarding our launch as an independent company and the benefits expected from that launch. These statements speak only as of the date of this press release, are based on our current plans and expectations, and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to our ability to migrate our production and manufacturing operations to lower-cost centers around the world; the highly competitive and evolving nature of the industry in which we compete; our ability to effectively manage our inventory and reduce inventory reserves; any loss of or reduction in sales to any of our top customers; risks associated with our foreign operations or foreign supply sources; the impact of economic and business conditions and industry trends in the countries in which we operate our supply chain; any failure by us to protect against dramatic changes in the volatile market price of cotton; our substantial debt and debt-service requirements that restrict our operating and financial flexibility and impose significant interest and financing costs; future financial performance, including availability, terms and deployment of capital; and the outcome of any pending or threatened litigation. Further information about these matters can be found in our Securities and Exchange Commission filings. We expressly disclaim any intent or obligation to update these forward-looking statements, other than as required by law.
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