Adidas group, the world's second-largest sportswear manufacturer, will end
contract with Indonesian shoemaker Prima Inreksa Industries in December, a paper
reported in Jakarta yesterday.
Chief of representative of Adidas Group Indonesia Georg Krebelder said both
sides had signed an agreement, marking the termination of partnership.
"The final date for the termination of the business relationship, however,
remains unchanged: That is Dec. 31, 2008,"the representative was quoted by the
Jakarta Post as saying.
Adidas Group ordered 201 million pairs of shoes from the Indonesian shoe
industry last year.
The group had been ordering 500,000 shoes per month from Prima since 1997
before it first aired the idea of terminating the partnership in July, because
Prima had been implicated in debts.
Prima is one of six Indonesian companies manufacturing sport shoes for
Adidas.
Last year Prima owed US$37.25 million to state lender Bank Negara Indonesia
(BNI) and US48 million to suppliers.
