Sky Schaudt/KJZZ

Gildan apparel company is closing its operations in Mexico, including two plants in Sonora, the Mexican state to Arizona’s south.

A major Canadian apparel company is closing its operations in Mexico, including two plants in Sonora, the Mexican state to Arizona’s south.

The closure of the Gildan Activewear plants in the Sonoran capital Hermosillo and border city Agua Prieta will mean the loss of more than 1,700 jobs. That’s according to Gerardo Vazquez, head of the Sonoran export manufacturers group.

“It obeys the rules of the market, of competitiveness,” he said, adding that the Sonoran locations were no longer competitive, especially due to labor costs.

In a recent release, the company said higher costs and declining sales led to falling revenue for its most recent quarter. Plant equipment will be moved to Central America and the Caribbean.