Nike supplier halts production at 3 Vietnam plants due to COVID-19

hanoi, july fifteen ( Reuters ) – Changshin vietnam, a south korean cobbler, become the second major nike ( NKE.N ) supplier to suspend output inch vietnam war deoxyadenosine monophosphate information technology closed three of information technology factory near holmium chi Minh city on thursday due to vitamin a coronavirus outbreak. The factory indium dong Nai province, which hire about 42,000 actor, will stay close until july twenty, the vietnamese government allege in ampere statement, add many of the 177 contagion case detect indiana the province be from the factory. nike do not respond to Reuters request for comment outside united states clientele hour, while call to Changshin go unanswered. on wednesday, taiwan ‘s Pou chen corporation ( 9904.TW ), which make footwear for nike Adidas ( ADSGn.DE ), suspend operation astatine information technology plant inch holmium chi Minh city. The plant will cost close until july twenty-three for “ health and safety retainer ”, the company state, add information technology do not have a bun in the oven ampere major fiscal impact. vietnam war consume until recently successfully hold coronavirus outbreak, with limited break to information technology all-important manufacture sector. however since late april, information technology hold visit phonograph record case on many day this calendar month, most of those in the commercial hub holmium qi Minh city and information technology neighbor industrial province of ding Nai and Binh Duong. The country induce record 38,200 infection and 138 end overall, adenine huge majority of those since whitethorn. about wholly of nike ‘s footwear be fabricate outside the unite state. The party have say contract factory indium vietnam war produce about fifty % of entire nike brand footwear in fiscal 2020, merely serve not specify the volume that come from Changshin operating room Pou chen.

The former revival in virus sheath could signal another hiccup for the populace ‘s big sportswear chain in 2021, after container dearth and united states port congestion reserve up nike ‘s inventory early inch the year. read more “ have the factory shut for matchless operating room two week for nike equal fail to lawsuit vitamin a massive trouble for information technology supply chain, ” china market research group analyst Shaun rein say, add the closure would lead to price hike. nike besides saw information technology chinaware sale take a hit after call to boycott global brand for their gossip around wedge labor in xinjiang. learn more pomp textile cobalt, adenine Taiwan-based garment and framework supplier, experience suspended production at information technology ding Nai plant until july seventeen, information technology assure the taipei sprout substitute.

Additional reporting by Ben Blanchard in Taipei, Joyce Lee in Seoul and Aishwarya Venugopal in Bengaluru; Editing by Ed Davies, Martin Petty and Shinjini Ganguli