Adidas closes last company-owned factory in China
The plant, which employs 160 people, will close at the end of October to increase the company's efficiency.
Wed, Jul 18, 2012 at 05:53 AM
German sportswear giant Adidas said July 18 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.
Adidas stock was down more than 1 percent on the Frankfurt stock market, but this was more to do with a profit warning from competitor Puma.
Copyright 2012 AFP Global Edition