Adidas shuts employees directly under China's factory to compensate or far exceed the national standard

This morning, sportswear giant Adidas confirmed that it had decided to close its only direct factory in China. The purpose was to move to Southeast Asia. This factory is located in Suzhou Industrial Park and is a 100% wholly-owned subsidiary of Adidas Group.

The reporter learned that Adidas' news of shutting down the Suzhou plant began circulating on the Internet in April. A number of employees at the Suzhou plant stated that according to the factory's notice, the factory will be closed in October this year. Then it was verified that closure was indeed a problem and the company’s personnel recruitment had stopped.

According to Adidas' official introduction, Adidas China is a 100% wholly-owned subsidiary of Adidas Group. It registered and opened a production base in Suzhou, and its trading headquarters is located in Shanghai. It has branch offices in Beijing and Guangzhou. The Suzhou plant is also its only own factory in China.

The reporter learned this morning that Adidas China headquarters has confirmed that the Suzhou plant will soon be closed. In an e-mail response to this reporter, Adidas stated: "For the sake of strategic considerations for the reintegration of global resources, Adidas will close its only own factory in China later this year."

Regarding the future of this factory, Adidas did not explain it in detail. According to a person familiar with the Suzhou Industrial Park, the Adidas Suzhou plant is preparing to relocate to Myanmar.

Staff compensation compensation standards or far exceed national standards According to informed sources disclosed above, all the employees of the factory will be disbanded on the spot, but Adidas will provide generous compensation for the departure.

With regard to how to compensate the demobilized workers, the person in charge of the Department of Factory Administration stated that “when the time comes, the employees of the factory will get N+1 (N is the whole year of working in the factory) according to their own job and the number of years of working in the factory. Multiplied by the monthly salary."

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

It is speculative to speculate that shutting down factories in China or to reduce the cost of adidas sales in China soared, but it intends to shut down the only factory directly in China.

In response, Adidas China stated that the reason for the closure was based on "a strategy for reintegrating global resources."

Despite Adidas' explanation, analysts still speculate that due to the gradual increase in Chinese wage standards, Adidas hopes to "relocate the production line to Southeast Asia, which has lower labor costs."

The market has not visited the store to inform the stability of commodity prices For Adidas to shut down the factory directly in China, the reporter called the Beijing Adidas store in the morning, the relevant sales staff have expressed unaware. It is also known that due to the current season of discounted merchandise, some Adidas products are being promoted and the prices of related products will not change in the short term.

However, some industry insiders believe that after closing the China factory, all Adidas products will be completed by the OEM factory, which will inevitably affect the production cost to a certain extent, but the impact has not yet appeared.