Parkland Co., Korea's men's wear manufacturer, is set to leapfrog as a global top-five shoe supplier by building a large-scale sneaker factory in Indonesia.
The company said on July 13 that it is currently preparing to establish a shoe-making plant in Semarang, a city on the north coast of the island of Java, at the cost of US$120 million. The plant will be built on a site of 297,500 square meters by 2018.
A company official said, "We decided to expand the capacity of the plant as we have had more OEM orders coming in from Adidas and New Balance." Once the new factory is up and running, Parkland will be able to add $250 million in sales revenue, which will make the total annual sales $565 million.
The No. 1 and No. 2 plants in Serang, located in the west of Java, have combined annual sales of $315 million with 27 million pairs of shoes a year in 75 production lines. Once the Semarang plant is operational, the two locations will produce 51 million pairs of shoes a year in 145 production line.
Once this is materialized, Parkland will become the world's fifth largest shoe manufacturer in ten years since its launch in the shoe business in October 2005. It began producing shoes in earnest since 2010. In November 2014 and January this year, the company won the Best Leadership Award and Best Manufacturer Excellence Award from Adidas and New Balance, respectively.
