Indonesian Footwear Manufacturers Invest Heavily In New Factories

This year, footwear manufacturer Adis Dimension Footwear has increased its shoe production capacity.

The company is proficient in producing sports shoes and will build new factories to increase production.

Regarding the capital source of the new plant, Adis Dimension uses internal cash and bank loans.

The company specializes in making Nike brand.

To invest in the new plant, we need to invest about $50 million to $60 million.

The new plant is located in the Majalengka area of West claw province.

Harry Jan do, chairman of Adis Dimension Footwear, claimed that they chose Majalengka because the location was close to Jakarta.

"For this reason, the logistics cost of raw materials is cheaper."

He said so.

Adis Dimension set the target. The new plant has the highest production capacity of 12 million units per year.

However, at the initial stage, the company could not use all the capacity.

Harry Jan do expects that it will take 5 years to reach the highest production capacity of shoes.

He still does not want to disclose the plant area, including the equipment and advantages of the new plant.

In addition to logistics and pportation, Adis Dimension chose Majalengka as production site because of its abundant labor force.

He said that more than 10 thousand employees are needed to build footwear factories.

Like the previous shoe business, Adis Dimension's new factory also specializes in export markets.

To this end, the new factory of Adis Dimension is also preparing to supply the foreign footwear market exclusively.

About the capital source of the new plant, Adis Dimension uses internal cash and

。

While waiting for the factory to build permits, Adis Dimension is currently conducting feasibility studies.

It is estimated that the construction of the factory will take only two or three years to complete.

In order to meet the raw material of shoe production in new factory, Adis Dimension company will provide from the area of Ya Maud de don.

If the new plant is launched, the capacity of Adis Dimension will increase by 10% to 32 million pairs per year.

Recently, the shoe factory owned by Adis Dimension is located in Balaraja area of Wan Dan Province, with an annual output of 20 million pairs.

Harry Jan do said that all the company produced

They are all global brand footwear sports shoes market.

For the domestic market, Adis Dimension is not very interested because the purchasing power of the public is declining.

So that domestic sales are few.