Adidas Shifting More Production to SE Asia

Adidas has announced plans to shift more production from China to Southeast Asia, including Cambodia, over the next five years due to the rising cost of labor and materials in China, an official with the German sportswear firm confirmed yesterday.

“It has been our strategy for a while to increase the regional variety among our supply base to be prepared for future business requirements,” Silvia Raccagni, a senior manager for sustainability communication at Adidas AG told Khmer Times.

Her comment followed statements made last week by the company’s chief of global sourcing, John McNamara, about rising labor costs. Mr. McNamara told a workshop for investors the he expected labor costs to keep rising by 11-15 percent a year, while the price of materials like cotton and nylon could rise 1-4 percent a year.

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