Nike agrees to extend closure of CCM factories

07 Aug '07

2 min read

Nike has agreed to extend the closure of the two factories Hardaya Aneka Shoes Industry (Hasi) and Nagasakti Paramashoes Industry (Nasa) in Indonesia. Central Cipta Murdaya (CCM) the owner of these two manufacturing units, had been aggressively demanding the extension, so as to find proper placements for the labourers.

CCM official confirmed to Fibre2fashion, “Finally Nike has agreed to postpone closure to 12 months for Hasi and 24 months for Nasa instead of 9 months.”

Source further explained, “Business with Nike is not possible now. CCM is well renowned organization in Indonesia. For past 5 years company has been selling products to Nike for US $14-15 and now they are asking for products at around $11, which is absolutely not affordable. This will also be extremely unfair as the same shoes are then sold by Nike at $60-100.”

However, he said, “This extension of the contract will help us create jobs for our 14000 employees. Our primary aim is to take care of our employees and the social responsibilities. Human resource responsibilities are our major concerns and we are trying our best to help them.”

Talking about CCM's future strategies, the official revealed, “We are planning to shift to genuine parts oil (GPO), which offers good business prospects. We are also searching and venturing new avenues to employ workers, including Plywood and retail sectors. CCM aspires to and is working hard to create our own new brand. We are sure that by the end of next month we will create jobs for around 3000 employees.”

Fibre2fashion, News Desk - India

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