Nike Inc. announced plans to invest $99 million to build a new distribution center in the Taicang Economic Development Area, Jiangsu, according to ChinaRetailNews.com. Besides providing support for current needs, the 120,000 square meter warehouse includes some expansion space reserved to meet the demands of new sub-brands.
Construction will be started in spring 2009 and is expected to be in operation by the third quarter of 2010. By the second quarter of 2011, the initial capacity distribution center is expected to 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.
