Nike resumes soccer ball production in Pakistan

28/05/2007
 
Nike is to resume production of its branded soccer balls in Pakistan, following the company’s decision to end its contract with Saga Sports last November over labour concerns. It has signed an agreement with Sialkot-based ball producer Silver Star Group, which defines nine workplace conditions that must be met, including hourly wages for workers, full benefits and rights to freedom of association. All production must be done within Nike-approved facilities and technology must be installed to electronically track production and inventory.

It expects to place its first order with Silver Star this summer, with production to begin in autumn. Initial and ongoing production will be contingent upon the factory’s ability to comply with product and compliance standards and fulfilment of its workers’ rights commitments.

Through this agreement, Nike hopes to accomplish five objectives: to re-establish its presence in the country; to build a better manufacturing process which empowers workers, supports the community and enhances the local manufacturing process; to promote change for workers in the soccer ball industry; to see a transformed business model develop for soccer ball manufacturing that accesses its global supply chain and enhances the company’s brand offering; and to further stimulate a broader stakeholder dialogue about supply chain models.