Feng Tay closes factories in Vietnam amid closures

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HEAVY TOLL:
The closure of the factories, which produced 56% of Feng Tay shoes last year, follows similar closures in India, its second-largest production base.

  • By Lisa Wang / Journalist

Feng Tay Enterprises Co Ltd (豐泰), a supplier to Nike Inc, temporarily closed four factories in Vietnam, its largest manufacturing base, on Saturday for about a week amid COVID-19 shutdowns, he said. declared yesterday.

Feng Tay is the latest in a series of local manufacturers operating in Vietnam who have suspended operations as the country grapples with its worst COVID-19 outbreak.

Pou Chen Corp (寶 成 工業), the world’s largest manufacturer of branded sports and leisure footwear, said last week that it had suspended operations at its Ho Chi Minh City plant because of restrictions on viruses closed factories in the business center until Friday. Pou Chen manufactures shoes for companies such as Nike and Adidas AG.

Photo: AP

Feng Tay has suspended operations at its main subsidiaries in Vietnam – Dona Victor Footwear Co, Dona Pacific (Vietnam) Co, Vietnam Dona Orient Co and Dona Victor Molds Manufacturing Co – until Friday, according to a company filed with the Stock Exchange of Taiwan.

The company, based in Douliou City of Yunlin County (æ–—å…­), said the Vietnamese government has imposed strict travel restrictions in the Ho Lai and Pac Son regions, preventing some employees from working in the area. .

Feng Tay will continue to strengthen COVID-19 measures to prevent infections, he added.

Vietnam is Feng Tay’s largest footwear manufacturing base, accounting for 52% of its total capacity, according to investor conference presentation material.

Last year, Vietnamese factories produced 63 million pairs of sneakers, accounting for 56% of Feng Tay’s overall shipments of 112 million pairs.

Last year, Feng Tay shipped 9% fewer shoes than in 2019, as COVID-19 restrictions in India forced the company to halt production there for 37 days, resulting in a 29% reduction annual shipments from its Indian factories.

Feng Tay’s second largest manufacturing base is India, which contributes 26% of the company’s total capacity.

In May, Feng Tay again closed factories in India for 18 days due to epidemics.

Shoemaker Sports Gear Co (志強 國際) also announced yesterday that it will suspend production at its Vietnamese factories for 14 days until August 2 at the request of local governments.

The company plans to disinfect all areas of the plant during the period to help prevent COVID-19 infections, it said in a regulatory filing.

“As the third quarter is generally a slow season, the company would affect production [from other factories] to reduce “the effects of closures,” Sports Gear said.

Textile supplier Eclat Textile Co (å„’ é´»), which counts Nike and Under Armor Inc among its customers, said it would extend the closures started on Saturday at its Vietnamese facilities until Friday.

Other Taiwanese companies with operations in Vietnam – including golf club producer Advanced International Multitech Co Ltd (明安 國際), interior decoration manufacturer Ching Feng Home Fashions Co Ltd (æ…¶ 豐富), bicycle component manufacturer SR Suntour Inc (榮 輪 科技), Headway Advanced Materials Inc (展 宇 科技 材料), Evertop Wire Cable Corp (å„„ æ³° 電線 電纜) and King Chou Marine Technology Co Ltd (金洲 æµ·æ´‹ 科技) – also stated that they would suspend production of their Vietnamese units for up to two weeks. .

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