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Adidas in deal with China suppliers

Updated: 2012-12-20 14:13
By Li Woke ( chinadaily.com.cn)

German sports wear giant adidas AG said Wednesday that it will continue to work with more than 300 supplier factories in China despite a recent contract dispute.

Chinese media said adidas suppliers were dissatisfied with compensation offers following contract terminations.

"China has been, and will remain, a key sourcing market for the adidas Group. It is true that we are rationalizing our sourcing structure and this has resulted in the termination of contracts with 10 suppliers. Nevertheless, adidas has fulfilled all of its contractual obligations with the suppliers to the satisfaction of all parties and will continue to partner with more than 300 supplier factories in China," said adidas in a e-mail statement.

In August this year, adidas announced it would shut down an apparel operation in Suzhou, in Jiangsu province, as well as terminate contracts with five suppliers in the country in an attempt to become more efficient by restructuring its business in China.

The company said earlier that it plans to open 500 to 600 stores in lower-tier cities by the end of the year mainly in the western and northwestern parts of China.

 

Timeline

Adidas workers dissatisfied with compensation -- Dec 19

Adidas suppliers seek redress from contract termination -- Aug 1

Adidas to close only wholly-owned factory -- July 23

Adidas to close Suzhou plant -- July 19

 
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