Adidas pledges to maintain presence in Indonesia
Posted by footwearglobal on June 24, 2008, Tuesday
www.chinaview.cn 
2008-06-23 15:38:14
JAKARTA, June 23 (Xinhua) — German-based footwear maker Adidas Group has pledged to maintain its business in Indonesia despite the recent termination of supply contract from a major local supplier, local press said Monday.
“Indonesia remains a key sourcing country for the Adidas Group,” the company said in the statement as quoted by major newspaper The Jakarta Post.
Adidas has decided to end ties with Indonesian supplier PT Prima Inreksa Industries by the end of this year as the latter failed to meet orders from Adidas due to financial difficulties.
The two sides have announced they agreed to find the best solution to address the current situation and the job security of some 6,500 workers.
“We will continue to engage and support the factory during this difficult period,” the Adidas Group head of footwear sourcing, Horst Stapf, said in a statement.
Prima reportedly is unable to pay some 37 million U.S. dollars in debt to state-owned Bank Negara Indonesia, while its former owner left the company.
According to the statement, currently there are more than 60 factories manufacturing footwear and apparel products for Adidas in Indonesia.
In 2006, Adidas ceased contracts with its suppliers PT Dong Joe Indonesia, PT Spotec and PT Tong Yang Indonesia, leaving some 18,000 people out of work.
Editor: Sun Yunlong
http://news.xinhuanet.com/english/2008-06/23/content_8423774.htm
