Nike plans to close its Chinese factory and move back to the United States
Recently, according to foreign media sources, Nike Production plants in China will be moved to the United States, while factories in Vietnam and South Korea will remain unchanged. Only Chinese factories will be relocated! Industry insiders said that the relocation of the factory means an increase in production costs, and NIKE sneaker products may see price increases across the board. Experts speculate that the previous price increase of Air Jordan 1 to US$170 may be related to this.
According to manufacturingmap statistics, Nike has factories in 43 countries around the world, including 112 contract production units in China. Accounting for 18%, there are an estimated 156,411 employees, accounting for 13% of the world.
In 2019, Nike announced that it would invest nearly US$200 million to build a factory in Arizona.
In the past few In 2018, Nike has been trying to move its factories closer to huge consumer markets such as Europe and the United States, which is called the “move the factory back to the United States” plan. In 2019, Nike announced that it was planning to invest US$185 million (equivalent to approximately RMB 1.27 billion) to build a new production plant in Fiesta, Arizona, which is expected to employ 505 employees.
The factory will be engaged in the production of air cushions with higher technical content rather than full shoe manufacturing. Once completed, it will be Nike’s third air sole manufacturing plant in the United States. Nike expects that the new factory will begin operations in 2020 and complete the full operational configuration of all production lines within the next three years, allowing the factory to be put into use in a saturated state.
It is worth noting that Nike is not the only one who has reported that it will move its Chinese factory to the United States. As early as the end of February, according to An interview with the New York Times showed that it has been officially confirmed that members of the Yeezy team have moved to Wyoming, USA.
Kanye West and Yeezy chief sneaker designer Steven Smith have clearly revealed at the event that they plan to start producing products in the United States and move more Yeezy headquarters production to Wyoming. 4,000 acres of pasture.
The United States plans to set up a US$25 billion reflow fund
And today (May 19) Reuters reported that U.S. lawmakers and government officials are discussing the enactment of legislation to help companies or major suppliers withdraw from China, including tax cuts, subsidies and new regulations to achieve the goal.
According to Reuters inquiries to a number of current and former government officials, members of Congress and industry elites, it was concluded that the most widely discussed plan is to establish a US$25 billion “Reshoring Fund” to encourage companies to make reshoring decisions. It is reported that government officials still have different views on the above proposals, and it is expected that it will be difficult to announce them together when launching a new rescue measure. </p
