CHINA TOPIX

11/02/2024 07:28:48 am

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Adidas Shifts Shoe Production From Asia, Employs Robots

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(Photo : Getty Images) Adidas is relocating its factory to Germany from Asia.

Footwear maker Adidas is transferring its manufacturing facilities from Asia back to Germany. However, a boost in jobs in the European nation is unlikely as the factory will be operated almost entirely by robots.

As part of its "automated revolution," the world's second largest sportswear company has unveiled a 3,000-square-foot prototype "Speedfactory" that will be built in Ansbach, Germany.

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"We believe that this is pioneer work for a fully automated production process," Jan Runau, a representative of Adidas told NBC News.

With the help of the cutting-edge facility, the sportswear giant "will be able to get the desired product to the customer much faster."

A 50,000-sqaure-foot "Speedfactory" in Ansbach is due to be completed by the end of the year. The company plans to put up its second facility in the United States next year, and a third one soon after.

The company will start selling 500 robot-made high performance running shoes later this year.

During the 1990s, Adidas relocated its production site from Europe to Asia because of the wage hike. However, it kept one of its factories in Germany where around 700,000 soccer shoes are made yearly.

Overall, Adidas produces over 300 million sports shoes a year, and it plans to produce 1 million shoes in Germany.

Its rival Nike is reportedly also planning to make a similar move, and it may include factories in the United States.

Meanwhile, electronics maker Foxconn is ahead as it has replaced some 60,000 factory workers in China with robots. The Apple and Samsung supplier said that opting for automated operation will its free employees from performing repetitive tasks and allow them to shift their focus to higher cognitive jobs instead.

Experts have cautioned about the impending impact such changes will make on the job industry. A consultant from Deloitte in partnership with Oxford University suggested that about 35 percent of jobs are highly at risk over the next 20 years.

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