BEIJING, July 18 Sporting goods and apparel
maker Adidas AG is closing its only company-owned
sportswear factory in China later this year to streamline
manufacturing, a company spokeswoman said on Wednesday.
Spokeswoman Sabrina Cheung said in an email China remained a
key market for sourcing goods for Germany-based Adidas with more
than 300 supplier partners in the country.
The Suzhou Adidas factory employs about 160 workers who were
notified of the closure a few months ago and who will receive a
benefits package, Cheung said.
The sports apparel industry is becoming increasingly
competitive amid China's slowing economy, with Adidas, Nike Inc
and Converse competing against up-and-coming Chinese
players such as Li Ning Co Ltd, ANTA Sports Products
Ltd, 361 Degrees International and China
Dongxiang (Group) Co Ltd.
The tougher economic environment is hurting sales as well as
manufacturing in the sector.
Earlier this month Li Ning, founded by China's most famous
Olympic gymnast and which recently warned of a "substantial
decline" in 2012 profit, replaced its chief executive and said
it would tackle bloated inventory and scale back new store
Adidas is the official sponsor of the German and other
national teams that will compete in the London Olympics which
begin later this month.