Nike Moving Ahead With New Factory in Arizona
July 11 2019 - 7:30PM
Dow Jones News
By Stephen Nakrosis
Nike Inc. (NKE) said Thursday it will move forward to open a new
factory in Arizona, the company's third location dedicated to
production for its Nike Air shoes.
The new Nike Air Manufacturing Innovation factory in Goodyear,
Arizona, is expected to create over 500 full-time jobs, the company
said.
The move comes after the company pulled its Air Max 1 USA
sneaker from stores, as it had a "Betsy Ross" flag on the heel. The
Wall Street Journal reported Nike made the decision after NFL
player-turned-activist Colin Kaepernick told the company that the
flag was symbol he and others consider offensive, according to
people familiar with the matter.
After that decision, the Republican Governor of Arizona, Doug
Ducey, told a state agency to withdraw a $1 million grant that had
been offered to Nike.
Earlier this month, as reported in The Wall Street Journal,
Goodyear Mayor Georgia Lord said the town would still offer
incentives to Nike, as the proposed factory would provide jobs and
investment in the community.
Nike said building renovations in Goodyear will be started later
in the summer and production of soles for Nike Air shoes is
expected to begin early next year. Nike also said hiring for the
new plant will begin immediately.
"The expansion of Air MI in Arizona helps us keep pace with the
growing demand for Nike Air and also greatly increases the size of
our U.S. manufacturing footprint. We want to thank the State and
City of Goodyear for their partnership as we continue to accelerate
our growth," said Nike Chief Operating Officer Eric Sprunk.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
July 11, 2019 19:15 ET (23:15 GMT)
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