INDONESIA: Adidas and Nike shoes makers relocate
Six footwear firms are investing in a relocation
Indonesia's footwear industry has won an investment of US$550m from six Taiwanese and South Korean footwear manufacturers who are relocating their plants from China and Vietnam, according to the Indonesian Shoes Association (Aprisindo).
The relocation, mainly to East Java, has been prompted by riding labour costs and raw material issues in China and Vietnam, and is expected to finish within this current year.
Among these manufacturers, four Taiwanese firms who produce shoes for Nike and Reebok are completing their relocation with a total investment capital of $400m. In the meantime, two South Korean producers based in Vietnam, who outsource for Adidas and Geox, will invest $150m in Indonesia.
"Geox was targeted to produce up to 100,000 pairs of shoes per month, while Adidas would produce up to 850,000 pairs of shoes until the end of 2010," Eddy Widjanarko, chairman of Aprisindo said.
"In January 2011, Adidas is targeted to produce 1.2m pairs of shoes per month," he added.
Aprisindo said further footwear manufacturers are expected to relocate to Indonesia over the next few years, but that current electricity tariff hiking will hamper the investment wave.
Help test our new apparel sourcing tool.
Established skills and tradition were not enough to save some apparel makers from layoffs and factory closures in 2010. But acquisitions, an environmental focus and international expansion helped othe...
US-based sportswear firm Reebok has named the Tribal DDB New York office as its digital agency of record (DAOR) on a global basis. ...
Strong sales and clean inventories have helped sportswear and equipment giant Nike Inc to a 22% hike in second quarter profit, but shares fell nearly 6% after an 11% rise in future orders came in belo...
Taking a look at the week ahead for the footwear and apparel industry, here is news editor Joe Ayling's snapshot of just-style's latest news and insights agenda. ...
Nike has introduced its next generation of Nike Pro Combat uniforms and cleats; the Air Zoom Alpha Talon Cleat and 2011 Nike Pro Combat Uniforms....
The UK's Advertising Standards Authority (ASA) has banned a Reebok magazine and TV advert, following claims they were misleading. ...
- US apparel sector braces for potential cost hikes
- Trade Tracker – Trump's first weeks, Brexit agenda
- Vietnam grows share of US apparel imports in 2016
- Does a hard Brexit mean hard times for UK fashion?
- Key trade issues facing US textiles and apparel
- Bangladesh "high threat" for terrorist activity
- VF Corp sees Q4 and FY earnings tumble
- Sales at US clothing retailers jumped in January
- Ralph Lauren new execs to support Way Forward Plan
- Sourcing at MAGIC tackles trade, Africa and speed
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar