Adidas Closes Its Employees In Factories Directly Under China Or Exceeds The National Standard.

This morning,

The giant Adidas has confirmed that it has decided to shut down its only direct factory in China, with the aim of moving to Southeast Asia.

This factory is located in Suzhou Industrial Park, and is a wholly owned subsidiary of Adidas group 100%.

Reporters learned that

The news of closing the factory in Suzhou began in April.

A number of employees at the Suzhou plant said that the factory will be closed in October this year, according to the notice from the manufacturer.

After verification, the closure is true, and the company's personnel recruitment has stopped.

According to Adidas official introduction, Adidas China is a wholly owned subsidiary of Adidas group 100%. It registered and opened production base in Suzhou. Its trade headquarters is in Shanghai, with branches in Beijing and Guangzhou.

The Suzhou factory is also its only own factory in China.

Reporters learned this morning that Adidas China headquarters has confirmed that the Suzhou plant is about to close.

In reply to our correspondent's mail, Adidas said: "Adidas will close the only private factory in China later this year because of the strategy of re integrating global resources."

Adidas did not elaborate on the future of the factory.

According to a person familiar with the Suzhou Industrial Park, Adidas Suzhou factory is ready to move to Burma.

Compensation standards far exceed national standards.

According to the person familiar with the matter, all employees of the factory will be disbanded, but Adidas will provide generous compensation for leaving the company.

As to how to compensate the demobilized workers, the head of the factory administration said, "at that time, the employees of the factory will get the compensation of N+1 (N for the whole year worked in the factory) multiplied by the monthly salary according to the jobs and years of work in the factory."

The person in charge also stressed: "the compensation standard is far higher than the relevant national standards".

Reason guess

Shut down in Chinese factories or reduce costs.

In the backdrop of a sharp rise in sales in China, Adidas is planning to close its sole factory in China.

In response, Adidas China said the reason for the closure was based on the strategy of "reintegrating global resources".

Although Adidas explains so, analysts still speculate that Adidas will move the production line to Southeast Asia with lower labor costs because of the gradual increase in China's wage standards.

Market follow-up

Prices are not stable until stores are notified.

For Adidas's closure of factories directly under the Chinese government, the reporter called a number of Adidas stores in Beijing this morning, and the relevant salesmen said they did not know.

It is also understood that due to the current merchandise discount season, some Adidas products are being promoted, and the prices of related products will not change in the short term.

However, insiders believe that after the closure of the Chinese factory, all the products of Adidas will be completed by the foundry factory. This will inevitably affect the production cost to some extent, but the impact has not yet appeared.