Two Taiwanese footwear contractors for top brands have suffered a huge blow from the coronavirus pandemic and are reportedly shutting down plants in Vietnam and China.
Shoe manufacturers are experiencing a severe drop in demand amid the worldwide virus lockdowns and suspension of sporting events. Nike, Adidas, and other major brands have been temporarily closing stores in North America and Europe since March.
The world's largest footwear contractor, Taichung-based Pou Chen Corporation (寶成集團), recently announced it was furloughing workers, including 2,600 at its Changhua plant.
Last week, the company laid off 4,000 Chinese plant employees after closing operations in China's Hubei province, the initial epicenter of the coronavirus outbreak. Meanwhile, orders from one of its big clients are rumored to have been nearly halved in the second quarter.
The shoe contractor for Nike, Adidas, and Puma employed approximately 351,000 workers across Asia by the end of 2019, including in China, Vietnam, Indonesia, Bangladesh, Cambodia, and Myanmar, according to UDN.
People familiar with the matter told CTWANT that yet another leading Taiwanese footwear contractor is planning to lay off 30,000 workers in Vietnam.
HFF Group (宏福實業), the world's second-largest footwear contractor, manufactures shoes for top global brands such as Converse, Vans, Nike, and Puma, and has around 150,000 employees in China, Vietnam, Myanmar, and the Dominican Republic. CTWANT tried to reach the Yunlin-based company for comment but to no avail.
Taiwan is home to the world's largest footwear contractors. Around 3,000 shoe factories worldwide are Taiwanese-owned, accounting for one-third of the world's shoe supply.
Source：Taiwan News
