Sourcing group Merchant House International is moving production of a footwear line from China to the US in response to increased demand from domestic retail customers.

The company's first US footwear manufacturing facility in Jefferson County, Tennessee will see an investment of US$5.4m and create 109 new jobs.

The move to the new 40,000sq ft factory was prompted by strong US retail demand for Merchant House’s men’s leather boots and shoes.

The new facility, known as Footwear Industries of Tennessee (FIT), is due to start shipping in March 2014.

“We are excited about expanding our international presence and thrilled that’s happening in Tennessee,” said Merchant House founder Loretta Lee.

The footwear division of The Merchant House International Group operates two shoe factories and in recent years has added production lines to increase capacity to over 5m pairs of shoes annually.

The group manufactures footwear in the Tianjin, China area and has shipped its footwear to the US for 30 years, where customers include Wal-Mart, Kmart and Sears. It also makes safety and non-safety outdoor shoes for a number of national brands.