Nike and Adidas supplier suspends production at Vietnam plant due to COVID (updated)
14/07/2021 11:19
(Recasts top to add Pou Chen customers, share movement)
HANOI, July 14 (Reuters) - Taiwan's Pou Chen Corp 9904.TW ,
which makes footwear for companies such as Nike NKE.N and
Adidas ADSGn.DE , suspended operations at its plant in Ho Chi
Minh City on Wednesday as COVID-19 curbs hit factories in the
country's business hub.
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 had been detected at the
plant in Ho Chi Minh City, which is at the epicentre of the
country's worst coronavirus outbreak.
The company did not immediately respond to an email seeking
comment.
Shares in Pou Chen, the world's largest manufacturer of
branded athletic and casual footwear, closed down 1.3% on
Wednesday.
After successfully containing the disease for much of the
pandemic, Vietnam has faced a more stubborn outbreak since late
April.
Record infections and strict curbs on movement have left
plants operating below capacity in northern provinces where
suppliers for Apple AAPL.O , Samsung Electronics 005930.KS
and other global tech firms are located, sources have said.
urn:newsml:reuters.com:*:nL3N2NF0XM
Pouyuen Vietnam, the largest employer in the city with
56,000 workers, was unable to arrange for its workers to sleep
at the site as required by authorities to allow the business to
remain open, the health ministry said on Wednesday.
Last year, Pouyuen Vietnam was ordered to suspend its
production for two days after failing to meet local social
distancing rules. urn:newsml:reuters.com:*:nL3N2C11TR
Earlier this week, state media said authorities also ordered
29 companies in the Tan Thuan Export Processing Zone, an
industrial park, to suspend production due to the outbreak.
In the neighbouring Saigon Hi-Tech Park, which houses
international companies, more than 700 infections were detected
in recent days and authorities ordered companies to shut units
with infected workers, state media reported.
Despite the latest outbreak, Vietnam has recorded far lower
caseloads that many other countries with 36,605 infections in
total and 130 deaths.
(Reporting by Sayantani Ghosh in Singapore; Editing by Ed
Davies and David Clarke)
((sayantani.ghosh@thomsonreuters.com;))