Adidas closes last company-owned factory in China
German sportswear giant Adidas said Wednesday it was closing its only company-owned factory in China, although the country would continue to be its “main global production site” via subcontractors.
A spokeswoman confirmed that the site in Suzhou, near Shanghai, which employs 160 people, would close at the end of October for “efficiency” reasons.
She said this was part of a broader strategy on the part of the firm to subcontract production, with the company now owning “only a handful” of plants itself worldwide.
The firm has 300 factories belonging to subcontractors in China, where sales rose by 23 percent last year to 1.229 billion euros ($1.509 billion), she said.
German sportswear giant Adidas said it was closing its only company-owned factory in China, although the country would continue to be its "main global production site" via subcontractors. (AFP)
Adidas stock was down more than one percent on the Frankfurt stock market, but this was more to do with a profit warning from competitor Puma.
http://sg.news.yahoo.com/adidas-closes-last-company-owned-factory-china-095323346- finance.html
Category: China
