Adidas suppliers plan new plant

20 March 2006

Apache Footwear, a Singapore-based contract supplier of footwear to Adidas shoes, are planning a US$12 million production facility on a 315-acre site in the Nellore district of Andhra Pradesh, India. The plant will create about 30,000 new jobs over a four year period, according to press reports. Apache will reportedly set up the plant in an economic zone for exports. Adidas have 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 10-year tax-free holiday and will also be provided with all the necessary infrastructure facilities.

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