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Supplier of Nike and Adidas suspends production at Vietnamese factory due to COVID

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HANOI, July 14 (Reuters) – Taiwanese company Pou Chen Corp (9904.TW), which makes shoes for companies such as Nike (NKE.N) and Adidas (ADSGn.DE), has suspended operations at its factory of Ho Chi Minh City on Wednesday, as COVID-19 brakes hit factories in the country’s business center.

Vietnam’s health ministry said in a statement that production at Pou Chen’s Pouyuen Vietnam factory would be suspended for 10 days.

State media said 49 infections were detected at the Ho Chi Minh City plant, which is at the epicenter of the country’s worst coronavirus outbreak.

The company did not immediately respond to an email seeking comment.

Shares of Pou Chen, the world’s largest manufacturer of branded sports and leisure shoes, closed 1.3% on Wednesday.

After successfully containing the disease for much of the pandemic, Vietnam has faced a more stubborn epidemic since the end of April.

Record-breaking infections and strict travel restrictions have left factories operating below capacity in northern provinces where suppliers to Apple (AAPL.O), Samsung Electronics (005930.KS) and other global tech companies, sources said. Read more

Pouyuen Vietnam, the city’s largest employer with 56,000 workers, was unable to put its workers to sleep at the site as authorities demanded to keep the company open, the company said on Wednesday. Ministry of Health.

Last year, Pouyuen Vietnam was ordered to suspend production for two days after failing to comply with local social distancing rules.

Earlier this week, state media said authorities also ordered 29 companies in Tan Thuan Export Processing Zone, an industrial park, to suspend production due to the outbreak.

In nearby Saigon Hi-Tech Park, home to international companies, more than 700 infections have been detected in recent days and authorities have ordered companies to shut down units with infected workers, state media reported.

Despite the latest outbreak, Vietnam has recorded a far lower number of cases than many other countries with 36,605 total infections and 130 deaths.

Report by Sayantani Ghosh in Singapore; Editing by Ed Davies and David Clarke

Our Standards: Thomson Reuters Trust Principles.


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