Adidas suppliers Apache plan new production facility27 February 2006
The foundation stone for the Rs500-crore footwear manufacturing plant of Apache Investment Holdings, a supplier to Adidas, was laid on Saturday February 25 at Mambattu village in Nellore district of Andhra Pradesh, India. Apache Footwear, is a Singapore-based contract supplier of footwear to Adidas shoes, and the plan is for a US$12 million production facility on a 315-acre site. The plant will create about 30,000 new jobs over a four year period. Apache will reportedly set up the plant in an economic zone for exports. Adidas has shut down the majority of their German manufacturing bases in order to outsource from cheaper Asian countries. Apache aleady have a presence in China and the US and employ 30,000 plus with more than 60% of them being women. The State Government has agreed to allot the land at Mambattu in Tada for 25 years under a lease for one rupee to develop the special economic zone and the government will invest in training. Apache will have the advantage of a ten-year tax-free holiday and will also be provided with all the necessary infrastructure facilities. Phase one of the project is scheduled to be ready by the year-end. Later, the project will be complemented by a tannery at a suitable location nearby. The company expects the workforce to reach around 7,000 in the first year, 15,000 in the second, 20,000 in the third, and 30,000 by the fourth year. Adidas have been chosen as the official supplier of footwear for the Beijing Olympics and Apache is an exclusive supplier of footwear to Adidas.