Nike shoes close three factories in China

On February 17, the world’s number one sports brand nike shoes company announced its Asia’s largest logistics center in Taicang Economic Development Zone, Jiangsu Province, when started, nobody even thought of in just one month later, a similar with “Nike” and “Taicang” two words suddenly broke the news. Yesterday, reporter learned from China Nike, Nike plans to Taicang City in Jiangsu Province, by the Winterthur Group, the management of the business transferred to footwear production is located in Winterthur factories elsewhere in Asia and the closure of the sole owner of the company’s footwear production — Taicang plant facilities.

The view was expressed that the industry is rising production costs in China, Vietnam, Nike intends to switch to other lower-cost manufacturing base. However, the financial tsunami sweeping the globe is no doubt more impact, our access to the latest news that, in order to streamline the supply chain, Nike in China and Vietnam, three shoe factories stop production at a factory program. March 19, according to Nike announced third-quarter financial results, its profit fell 47 percent year-on-year.
4 Nike factory to stop the next one
“At present, the production of Adidas in China accounted for half of total output, will be gradually reduced.” In July last year, Adidas, president of the media that the Chinese government to determine the wage level has been gradually increased, the cost of worrying. Have been used to light the day of the strategic assets, Adidas go ahead can be said to take the initiative through the transfer of production bases to cut costs.
A message that the industry stirred up great controversy, the focus naturally shifted to the same strategy to pursue asset light onto Nike. However, Nike’s response was that “investment and production in China will maintain the current level.” As for how to deal with the global financial crisis and rising raw material costs, Nike official spokesman said it would committed to improving the production efficiency, control production costs.
But six months later, Nike seems to have some sit still. Journalists access to the latest news shows that three of Nike in China shoe factory and a factory in Vietnam plans to stop production, mainly due to the sharp drop in consumer demand, a direct result of Nike to cut production, but further integration of its product supply chain.
Nike Beijing China confirmed the news. “In order to further promote the integration of long-term procurement strategy and streamline the supply chain, Nike, Inc. announced that it will, after 6-12, not to the 640 contract factories in the four footwear factories and a number of clothing factories in order to provide new business. “Nike said in a statement that China, a contract in the clothing factories, Nike is usually one of the many customers, so Nike does not have any orders for production of the majority of the factory. The reporter learned from the channel, Nike is the main four factories or sole customer.
It is reported that nike air shoes factories in China, about 180 in number, the total number of 200,000 employees.