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SBD Global/July 19, 2012/Finance

In Efforts To Restructure Business, Adidas Closing Its Only China Factory

Adidas is closing its only company-owned apparel factory in China as part of a "move to improve efficiency," according to Laurie Burkitt of the WALL STREET JOURNAL. An adidas spokesperson said that the German sporting-goods company will "close the 160-worker factory in China's coastal city of Suzhou at the end of October." The company also said that it will "source its products from other local Chinese manufacturers." It currently works with 300 supplier factories across China. The spokesperson added that "the closure is part of adidas' efforts to restructure business in China and globally to ensure efficiency and leverage scale." It was also noted that the company will "not be reopening the factory elsewhere" (WSJ, 7/18). REUTERS reported that the sports apparel industry is "becoming increasingly competitive amid China's slowing economy." Adidas, Nike, and Converse are competing against "up-and-coming Chinese players" such as Li-Ning, ANTA Sports Products, 361 Degrees International and China Dongxiang (REUTERS, 7/18).
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