Retailing, Franchising, and Consumerism Business Intelligence in China

Nike To Invest USD99 Million To Build Distribution Center In Jiangsu

International sports apparel maker Nike has announced plans to invest USD99 million to build a new distribution center in the Taicang Economic Development Area, Jiangsu, to reinforce its future development in China.

With a total area of 120,000 square meters, the new distribution center will initially provide distribution support for Nike's footwear, apparel, and equipment products. For Nike's future development in China, the distribution center will reserve some expansion space to meet the demands of new sub-brands.

The construction of this project will be started in spring of 2009 and it will be put into operation in the third quarter of 2010. By the second quarter of 2011, the initial capacity distribution center will be fully utilized.

According to Willem Haitink, the vice president and general manager for Nike China, the new distribution center will help to reduce delivery times by up to 15%.

At present, Nike has seven distribution centers around the world, which are located in countries such as Belgium, the United States, Canada, Japan, and South Korea.

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