Pou Chen relocate production sites
To avoid soaring labour costs, Pou Chen Corp have relocated some of their production bases from coastal provinces of China to inland areas, as well as overseas and according to Tsai Chi-chien, chairman of Pou Chen the company should see the benefits in 2012.
At the shareholders’ meeting on June 15, Tsai pointed out that to fund the transition of production bases, the company’s capital outlay will hit US$380 million this year, the highest in recent years, and will begin to drop in 2012, following completion of the relocation.
Many production bases in inland areas of China such as Jiangxi, Hubei, Hunan, Anhui, and Henan have already started mass production. In addition, the company has also expanded their production bases in Vietnam and Indonesia. A new plant in Bangladesh has also been inaugurated.
Pou Chen have 509 production lines worldwide employing 537,000 people worldwide.
The company turned produced 287 million pairs of footwear last year, up 16.4%, mainly for contract manufacturing, with major clients including Nike.
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