Company detailsCode: AdidasCompany name: AdidasCompany country: GermanyNumber of employees: 53731Sector: C - ManufacturingSector detail: C15 - Manufacture of leather and related productsSub-sectors: C15.2 - Manufacture of footwear Reshoring detailsReshoring announcement date: 26/05/2016Starting implementation date: June, 2016End of Implementation : June, 2017Reshored to: GermanyLocation of affected unit(s): AnsbachLocation code: DE251Reshored business function: ProductionPartial or Total reshoring: PartialReshoring governance mode: In house (in own facilities)Estimated job gains: 160Reasons for reshoring: Automation of production processDelivery timeImplementation of strategies based on product/process innovationLabour costs' gap reductionCase narrative: Adidas is a well-known German company specialised in sport footwear. According to official data, the company employs more than 50,000 people worldwide. Throughout the 1980’s, large portions of the company's production was offshored to China, where Adidas now employs around one million workers. One of the company's major competitors, Nike, recently decided to produce shoes through a robotised system. Adidas is following suit and has decided to adopt a similar strategy and is therefore bringing production back from Asia. Adidas will produce its pilot batch of shoes using robots in 2016, and plans to expand production in 2017. The first robotized plant will be opened in in Ansbach in Southern Germany. The company also plans to establish a Speedfactory in the US in 2017. Combined, the factories are expected to produce a minimum of 1million pairs of shoes every year. 160 new jobs are expected to be created at the German production site, which will require high-skilled labour to maintain the robots. Bringing production back from China and Vietnam will help the company to offset long shipping times and the rising cost of labour in Asia. It will also help in meeting demand for rapid innovation in designs and styles. Sources: The Guardian, 25 May 2016 Russia Today, 26 May 2016 Corriere della Sera, 27 May 2016 The Business of Fashion, 24 May 2016 Sources link: Russia Today, 26 May 2016 The Guardian, 25 May 2016 Corriere della Sera, 27 May 2016 The Business of Fashion, 24 May 2016 http://www.comunidadtextil.com/news1/2015/04/adidas-bajara-su-fabricacio... Offshoring detailsOffshoring date: 1995Offshoring location: ChinaOffshored business function: ProductionOffshoring governance mode: Third party (external suppliers)Offshoring entry mode: Non equityReason for offshoring: Availability of qualified suppliers in the host country / lack of suitable suppliers in the home countryLabour costs Notes: Link from 2015 contains some interesting notes about the case despite the news is older than the reshoring.