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Tuesday, December 21, 2004

Adidas relocates production to Romania and China

Adidas, the world's second- largest sporting-goods maker, will cut almost 10 percent of the French workforce at its winter-sports division as it shifts production of snowboards and skis to China and Romania.

Salomon will cut 160 jobs over the next two years in its native France and reduce the level of production there to 35 percent from 55 percent, according to an e-mailed statement released today.
The business, which Adidas took over in 1997, employs more than 2,800 people, more than 1,700 of whom are in France, Adidas said.

Most of the transferred ski production will go to Romania, while Adidas-Salomon will begin making products such as inline skates and snowboards in China, the company said.
The elimination of jobs will be negotiated with labor groups and involve retirement packages, job transfers and other measures.

Most of Adidas-Salomon's shoes are made in Asia, where the company has benefited from lower labor costs and the falling dollar, which shrinks production costs as purchasing prices for materials taper off.

Posted by Iulia Rasoiu : 12/21/2004 01:01:00 pm