When did Nike move to Indonesia?

When did Nike start manufacturing in Indonesia?

Nike first started using Japanese plants in 1964. When labor costs there climbed in the mid-1970s, it gave South Korea and Taiwan a run. In the 1990s, production jumped to Indonesia and China, which now account for two-thirds of Nike output.

Why did Nike go to Indonesia?

When faced with high costs of labor, they move capital to where costs could be cut. Thus, capital migrates to places where labor is available. In Indonesia, Nike found a country with a supply of cheap labor. … Over the years, Nike expanded its factories across the country.

Does Nike still have factories in Indonesia?

Vietnam had one of the best Covid responses in the world in 2020 and cases remained minimal for almost all of 2021, until a surge arrived in late July. Factories there remain closed. Nike’s factories in Indonesia, however, are back to full production, but are still suffering from the lost time they were under lockdown.

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Who makes Nike shoes in Indonesia?

Indonesian Industry Minister Saleh Husin inaugurated the new USD $60 million shoe factory of Changshin Reksa Jaya in Garut (West Java) which will produce Nike branded shoes. The shoe factory has an annual production capacity of 15 million pairs and will provide employment to 5,500 people.

How much does it cost to make a Nike shoe in Indonesia?

” “The retail price of Nike shoes in the U.S. is between $50 and $175, on average $75,” the study said. “But the production cost in Indonesia is $5.60 a pair.

Who is the CEO of Nike?

Early in his career, Nike President and CEO John Donahoe heard a speaker at a Bain & Company training program make an observation that immediately clicked with him: Elite athletes tend to view getting help as a sign of strength.

How many Nike workers are in Indonesia?

Indonesia is the third biggest producer of Nike goods, after Vietnam and China, with 40 factories employing 171,000 people.

How much do Nike workers in Indonesia make?

Much of Adidas’ and Nike’s sportswear is made in Indonesia, where 80 percent of workers in the garment sector are women and some make as little as 86 euros ($102) a month while others do not earn the legal minimum wage, according to the CCC’s report.

Does Nike have sweatshops in Indonesia?

Sweatshops are common in developing countries, including in Indonesia, India, Thailand, Bangladesh and Cambodia, where labour laws are rarely enforced. A Nike factory in Thailand. The factories, which are often housed in deteriorating buildings, are cramped with workers and pose fire dangers.

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How many Nike factories and workers does Tangerang Indonesia have?

When I ask how many people are involved in making one shoe, I am told, “200.” According to Nike’s 2009 Corporate Responsibility Report, this is one of about 40 different factories Nike contracts with in Indonesia. Seven of these make footwear. Altogether these footwear factories employ nearly 69,000 people.

Are Nike made in Vietnam?

Nike began manufacturing in Vietnam in 1995 with five contract footwear factories and currently works with nine footwear and 30 apparel factories. Over 130,000 Vietnamese citizens are employed by factories manufacturing Nike-branded products.

How many factories does Nike have in Vietnam?

HANOI, Nov 3 (Reuters) – About 200 contracted factories that make sportswear for Nike Inc (NKE.

Who makes Nikes?

The company was founded on January 25, 1964, as “Blue Ribbon Sports”, by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory.

Nike, Inc.

Headquarters near Beaverton, Oregon
Formerly Blue Ribbon Sports, Inc. (1964–1971)
Type Public