MANILA, Philippines – Citing the current adverse conditions in the global export market, adidas Group confirmed it is ending its partnership with SS Venture Inc, which manufactures vulcanized footwear product for the brand adidas.
The factory is located at the Mariveles Economic Zone in Mariveles, Bataan, employing around 447 permanent and 241 contractual workers.
The decision to terminate the manufacturing agreement stems from the current adverse conditions in the global export market. Nevertheless, adidas said it has continued to place orders with the supplier in an effort to enable a proper phase-out period and to support the workers’ ongoing employment.
The sporting goods company said the termination would take place on Dec. 31. However, adidas said the Mariveles shoe factory owner is unable to secure financing to continue operations beyond November.
“We regret that we have had to take this action, which has its roots in the current economic crisis. We have seen some misleading statements in the press about this business termination, and we hope this statement clarifies our position,” Horst Stapf, Head of Footwear Sourcing for the adidas Group, said in a statement released today.
“At this point in time and with Christmas approaching, our primary concern is for the wellbeing of the SS Venture workers and their families. We will continue to engage with the factory and help wherever we can,” he added.