April 25 (Bloomberg) — Adidas AG is moving some production away from Yue Yuen Industrial Holdings Ltd.'s shoe factory in Dongguan, China, where a strike over benefits and pay disrupted output for a week and a half.
"In order to minimize the impact on our operations, we are currently reallocating some of the future orders originally allocated to Yue Yuen Dongguan to other suppliers," Katja Schreiber, an Adidas spokeswoman, said by e-mail. The Herzogenaurach, Germany-based sportswear maker "has a highly flexible supply chain in place."
Sports and casual shoe brands including Nike Inc., Asics Corp., New Balance Athletic Shoe Inc., Puma SE and Timberland Co. are made by Yue Yuen, the world's biggest branded footwear maker and operator of the 1.4 million-square-meter (15 million square-foot) Dongguan complex in southern China. Employees at the complex, where more than 40,000 people work, are striking in a dispute over compensation since April 14.
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