US sportswear giant Nike plans to stop production at three footwear plants in China as part of a global drive to improve supply chain efficiency. The specific locations were not disclosed, although local media reported that one of plants is located in Taicang, Jiangsu province. Nike is the main or sole buyer at all three sites, which fulfil orders to contract.
The company is trying to direct production into fewer factory bases instead of spreading orders over a larger number of plants. In February, Nike said it would cut up to 1,400 jobs, or 4 per cent of its global workforce, to reduce management costs in the deepening recession.