The world's largest shoemaker, Yue Yuen Industrial (Holdings), on Wednesday announced it plans to acquire a raw material operation from its parent company, Pou Chen, as part of a vertical integration strategy.

Yue Yuen, which produces sports shoes for firms including Nike, Adidas and Reebok, did not reveal a price or timetable for a deal that will see it acquire the unnamed maker of materials for shoes it manufactures.

Yue Yuen executive director, Steve Li, told the South China Morning Post: "Under the strategy, we will gradually develop our upstream shoe material supply."

Earlier this year, Yue Yuen bought a majority stake in sports shoe manufacturer Symphony Holdings to help it expand its retail operations in mainland China.