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In response to the demand for orders, Fengtai (9910), Nike's main OEM shoe manufacturer, will expand its domestic and overseas operations this year.

Fengtai revealed on the 16th that the group's factories in Vietnam, India and Indonesia are still continuing to build new factories. It has recently decided to build two seven-story R&D buildings at the Fengtai corporate headquarters in Douliu, with a project amount of 1.35 billion yuan. It is scheduled to start construction in September and be completed in 2025. After the expansion of production at home and abroad is completed in the future, it will add new momentum to the group's operations.

In order to expand the scale of operations, Fengtai invested a total of 19.443 billion yuan in real estate, plant and equipment in the first half of this year, not only exceeding the 17.966 billion yuan in the same period last year, but also much higher than the 18.06 billion yuan in 2021.

In terms of the Taiwan factory, Fengtai has invested 310 million yuan to purchase 4,388 ping of land in Yunlin Science and Technology Industrial Zone to build a storage and transportation building. After completion, the materials, storage, transportation and logistics departments or operations of its corporate headquarters will be relocated to the new one. Storage Building. In response to the needs of business growth, Fengtai plans to rebuild two R&D buildings in the vacated corporate headquarters storage and transportation space to expand the group's R&D capacity.

Looking forward to the operation in the second half of the year, Fengtai revealed that the company is still taking orders in October. In order to meet the demand for orders, the group will add 7% to 10% of its shoe production capacity this year.

Fengtai, which has multiple divisions, will focus on investing in Indonesia, Vietnam and India overseas, while the mainland factory will no longer expand the factory, but will instead focus on improving factory automation and production efficiency as a new direction. The Indonesian factory will focus on the production of children's shoes and will expand the new factory; as for the Indian factory, it will train the ability to undertake mid-to-high-end shoes and expand the new factory. The Vietnam factory has improved the ability to produce difficult shoe shapes and expanded a new factory.

Fengtai has acquired land in Nam Ha, Binh Thuan Province, Vietnam. In November and December last year, Vietnam Nam Ha Footwear Company Limited (NH) was increased in cash with a total transaction amount of US$31 million for the construction of a new shoe factory, which is expected to be completed within two years.

Fengtai announced in November last year that it set up an Indian subsidiary, India Tindivanam Footwear Private Limited, becoming the fifth company of Fengtai in India. It will invest according to capital needs. In the future, it can increase its shoe-making capacity and start a new factory in India.

In addition, the Rich Valley shoe factory in its Indonesian factory will be developed in phases, and the first phase is under construction. Last year, Fengtai produced 111 million pairs of finished shoes, an annual increase of 5%. After the expansion of production capacity this year, the number of pairs of finished shoes of the group is expected to be higher than last year.