Adidas shuts down its only factory in China's coastal city of Suzhou.
Adidas AG has decided to close its only apparel factory in China, as part of its plan to reconsolidate its global resources.
The factory in China's coastal city of Suzhou will be closed at the end of October, the company said in a statement in response to a media query.
Staff at the factory revealed that the factory may be moved to Myanmar, but details are yet to be provided by the German sportswear company.
All the workers will be dismissed and Adidas will offer desirable compensation for them, according to a source close to the company.
Analysts said the closure of the factory means that the company will source its products from other local Chinese manufacturers. Adidas has already worked with 300 suppliers in the country, involving more than 300,000 workers.
The sportswear giant is facing another headache as an investigation is ongoing after its Cambodian garment workers making the London Olympic Merchandise were found to be paid only US$15 a week.
