Outdoor financials: Nike to close China factories

Nike Inc (NYSE: NKE) said it plans to halt production at three shoe factories in China and one in Vietnam to reduce output and streamline its supply chain as a result of declining consumer demand.
Author:
Updated:
Original:

Nike to close three China factories

Nike Inc (NYSE: NKE) said it plans to halt production at three shoe factories in China and one in Vietnam to reduce output and streamline its supply chain as a result of declining consumer demand.

According to a Reuters report, Nike might also pull apparel orders from other factories around the world. The report goes on to say that Nike uses about 640 factories around the world to produce apparel, footwear and other goods. Nike did not disclose the locations of the factories it might close, but it is the main buyer or sole buyer at all four, which produce shoes for Nike.

Erin Dobson, Nike's director of corporate responsibility, told Reuters that once the decision is made to close the factories, it will take six to 12 months to phase out orders completely.

"We have begun notification to four factories that we will be discontinuing orders with them," Dobson told Reuters. "The goal with giving them six to 12 months is it gives them the opportunity to seek new buyers."

According tot he report, Nike makes most its shoes in China, Vietnam and Indonesia, and Dobson said China will remain the company's largest producer of footwear, equipment and apparel.

Related

Fitness financials: Nike to close China factories, plus Finish Line, Foot Locker.

Nike to close three China factories Nike Inc (NYSE: NKE) said it plans to halt production at three shoe factories in China and one in Vietnam to reduce output and streamline its supply chain as a result of declining consumer demand. According to a Reuters report, Nike might also ...read more

Fitness financials: Nautilus pulls out of China factory purchase deal, plus Life Fitness/Brunswick, Nike, adidas/Reebok, Costco

Nautilus pulls out of deal to buy China factory In a filing with the U.S. Securities and Exchange Commission, Nautilus said it is terminating its agreement to buy Land America Health & Fitness Co. -- its largest contract manufacturer in China. Early last year, Nautilus had ...read more

Tubbs Stowe factory closing, jobs moving to China

K2 has set forth plans to shut down Tubbs Snowshoes' Stowe, Vt., manufacturing facility by early February 2005. The exact date of the factory closing has not been nailed down until K2 is satisfied all snowshoe orders for the 2004/2005 winter season have been fulfilled. Following ...read more

K2 closing snowshoe factory in Colorado

K2 Inc. has announced the company will shut its Grand Junction, Colo., factory, one of two snowshoe factories acquired when K2 purchased WinterQuest in October 2003. Production for Atlas snowshoes, some Tubbs snowshoes and possibly Little Bear snowshoes will move to the 1.3 ...read more

Fitness financials: Brunswick to close manufacturing facility, plus Nike, Wal-Mart

Brunswick to close manufacturing facility Brunswick Corp. (NYSE: BC), parent of various boat brands as well as Life Fitness, said it would stop producing its Bluewater Marine brands and close a plant that employs 175, saving the company $9 million annually. It will close its ...read more

Karhu works through few glitches in opening China factory

An email and a number of phone calls over the last several weeks regarding the very late delivery of Karhu skis and possible quality-control issues on a number of those skis – largely because of the company's shift to producing skis in China – prompted SNEWS® to check in ...read more

China_map.jpg

China labor shortage puts the squeeze on outdoor footwear makers

Though China has the world’s largest population (with 1.3 billion people), it is ironically suffering a labor shortage that is causing production problems for U.S. companies, including footwear makers in the outdoor industry. “Some of our production partners have lower ...read more

Chinese government takes control of tent production in Chinese factories

On May 29, SNEWS® learned that the Chinese government had seized control of all Chinese-owned tent factories and existing inventory throughout the country as part of the disaster relief effort for the earthquake-ravaged region of central China near Chengdu. Textile factories that ...read more

Fitness financials: Nike’s Q4 net income up on higher revenue

Nike’s Q4 net income up on higher revenue Nike (NYSE: NKE) said higher sales and better margins helped its fourth-quarter net income jump 53 percent from a year earlier, when it recorded a major restructuring charge. Its net income was $522 million, or $1.06 per share, for the ...read more