Dominion Textile
Encyclopedia
The Dominion Textile Inc. or Domtex was a major Canadian textile
manufacturer that was founded in 1905 and closed in 1998 when its remains were purchased by the American Polymer Group, at the time headed by Jerry Zucker
.
The company was formed in 1905 from a merger of four major Canadian textile companies, and it quickly gained a near monopoly in the tariff protected Canadian market. Many of its products were once household names in Canada, such as the Wabasso bedding line, Caldwell towels, and Penman's underwear. Based in Montreal, it was one of Canada's leading companies and had close links to the government. Most of the company's production was based in small towns in Quebec and elsewhere across Canada, in most of these towns the mill was the primary employer. The company was much praised during the Great Depression
for keeping employment levels high despite a collapse in prices. During the Second World War the company profited as a major supplier to the Allied war effort.
In 1948 the economic situation changed dramatically as tariffs between western nations were greatly reduced, and Dominion Textile was exposed to strong competition from the United States and Britain. Dominion Textiles' market share fell dramatically from nearly 100% of the Canadian market in 1947 to only 47% a decade later. The company almost collapsed, but eventually adapted to the new conditions. It was rebranded as Domtex and moved into new areas such as the production of polyester
. In the same period it became seen by Quebec nationalists as a prime example of the anglophone businesses that controlled the province. In 1967 FLQ member Jean Corbo died when a bomb detonated prematurely in an attempted attack on a Dominion Textile plant in Montreal
.
In the 1970s the company began to expand abroad, seeking to compete outside Canada. It purchased smaller companies in other nations and built new factories. At its peak in the 1980s it had 14,000 employees and factories in Canada, the United States, Ireland, France, Italy and Tunisia. A leader in a number of areas, it became the world's largest producer of denim
.
In the 1980s the textile industry was again changing, as General Agreement on Tariffs and Trade
(GATT) provisions came into effect that opened the business to competition from low wage developing economies. Domtex tried to adapt. It entered into a long battle to try to get concessions from its unions and closed half its Canadian factories. In 1987 it made a failed bid for American giant Burlington Industries
, that would have made it a global textile leader. Over the course of the 1990s the company slowly collapsed, and by 1997 it was left with only two factories. The remnants were bought for some $600 million by the Polymer Group of South Carolina
in 1998.
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
manufacturer that was founded in 1905 and closed in 1998 when its remains were purchased by the American Polymer Group, at the time headed by Jerry Zucker
Jerry Zucker (businessman)
Jerry Zucker was an Israeli-born American businessman and philanthropist.-Biography:Jerry Zucker was the son of Holocaust survivors. He graduated from the University of Florida with a Bachelor of Science degree in mathematics, chemistry, and physics and went on to earn his M.S...
.
The company was formed in 1905 from a merger of four major Canadian textile companies, and it quickly gained a near monopoly in the tariff protected Canadian market. Many of its products were once household names in Canada, such as the Wabasso bedding line, Caldwell towels, and Penman's underwear. Based in Montreal, it was one of Canada's leading companies and had close links to the government. Most of the company's production was based in small towns in Quebec and elsewhere across Canada, in most of these towns the mill was the primary employer. The company was much praised during the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
for keeping employment levels high despite a collapse in prices. During the Second World War the company profited as a major supplier to the Allied war effort.
In 1948 the economic situation changed dramatically as tariffs between western nations were greatly reduced, and Dominion Textile was exposed to strong competition from the United States and Britain. Dominion Textiles' market share fell dramatically from nearly 100% of the Canadian market in 1947 to only 47% a decade later. The company almost collapsed, but eventually adapted to the new conditions. It was rebranded as Domtex and moved into new areas such as the production of polyester
Polyester
Polyester is a category of polymers which contain the ester functional group in their main chain. Although there are many polyesters, the term "polyester" as a specific material most commonly refers to polyethylene terephthalate...
. In the same period it became seen by Quebec nationalists as a prime example of the anglophone businesses that controlled the province. In 1967 FLQ member Jean Corbo died when a bomb detonated prematurely in an attempted attack on a Dominion Textile plant in Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
.
In the 1970s the company began to expand abroad, seeking to compete outside Canada. It purchased smaller companies in other nations and built new factories. At its peak in the 1980s it had 14,000 employees and factories in Canada, the United States, Ireland, France, Italy and Tunisia. A leader in a number of areas, it became the world's largest producer of denim
Denim
Denim is a rugged cotton twill textile, in which the weft passes under two or more warp threads. This produces the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. Denim has been in American usage since the late 18th century...
.
In the 1980s the textile industry was again changing, as General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...
(GATT) provisions came into effect that opened the business to competition from low wage developing economies. Domtex tried to adapt. It entered into a long battle to try to get concessions from its unions and closed half its Canadian factories. In 1987 it made a failed bid for American giant Burlington Industries
Burlington Industries
Burlington Industries is a diversified U. S. fabric maker based in Greensboro, North Carolina. Founded in 1923, the company has operations in the United States, Mexico, and India and a global manufacturing and product development network based in Hong Kong. The company entered Chapter 11...
, that would have made it a global textile leader. Over the course of the 1990s the company slowly collapsed, and by 1997 it was left with only two factories. The remnants were bought for some $600 million by the Polymer Group of South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
in 1998.