Home / Knowledge / News / Adidas Group terminates outsourcing agreement
Adidas Group terminates outsourcing agreement
27
Nov '09
The adidas Group confirmed the decision to end its business relationship with SS Venture Inc, Philippines, which manufactures vulcanized footwear product for brand adidas.

The factory is located in Mariveles Economic zone, Mariveles, Bataan, and currently employs around 447 permanent employees and 241 short term contract workers.

It was agreed with the factory owner in early June 2009 that the termination would take place on 31st December 2009.

The decision to terminate the manufacturing agreement is due to a marked downturn in demand for the factory's products. Despite these conditions, adidas Group has continued to place orders with the supplier, to enable a proper phase-out period and to support the workers' ongoing employment.

However, it now appears that the factory owner is unable to secure financing to continue the factory operation beyond November.

“We regret that we have had to take this action, which has its roots in the current economic crisis. We have seen some misleading statements in the press about this business termination, and we hope this statement clarifies our position”, said Horst Stapf, Head of Footwear Sourcing for the adidas Group.

“At this point in time and with Christmas approaching, our primary concern is for the wellbeing of the SS Venture workers and their families and we will continue to engage with the factory and help wherever we can”, added Mr Stapf.

Fibre2fashion News Desk - India

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search