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Adidas to close its only apparel factory in China
19 Jul '12
1 min read
Adidas AG, the well-known German sportswear company, is planning to close its only self-owned apparel manufacturing unit in China.
“We will be closing our only company-owned factory in China, located in Suzhou, effective October 2012,” Ms. Katja Schreiber, Senior Corporate PR Manager, Adidas, informed fibre2fashion.
Explaining the reason for the company’s decision to shutdown its Suzhou production unit, she says, “The Suzhou factory is being closed to reduce complexity and give Adidas a consistent sourcing structure to better help us leverage scale.”
“However, China continues to be a very important sourcing country for Adidas and we currently work with more than 300 supplier factories in China,” she adds.
Talking about the future of those who are currently employed in the factory, she says, “The Suzhou factory employs approximately 160 people. Those affected have been given ample notice period and will receive a package and benefits which are well above the local legal requirement.”
Fibre2fashion News Desk - India
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