Nike set to start production in TN

The industrially backward Cheyyar taluk in Tamil Nadu is set to get a big boost to its economy when production starts at the Nike footwear factory. Taiwan-headquartered Feng Tay Enterprises, which makes shoes for Nike, has set up a new manufacturing unit under its Indian arm, Cheyyar SEZ Developers, at Cheyyar, about 90 km from Chennai. The new footwear factory, which has come up on a SEZ, has already commenced trial production of shoes and the facility is expected to formally launch its operations by the first week of October. The company has been allotted about 275 acres at the SIPCOT Industrial Estate in Cheyyar. In the first phase, the company has developed 50-60 acres for the new factory. It is also planning to bring in its suppliers and other component manufacturers to the SEZ.The initial phase of the footwear factory involves an investment of more than Rs 100 crore. The company has indicated that it has committed an investment of Rs 300 crore for the Cheyyar project.The factory would employ about 800 people, mostly women, from nearby villages. “We are impressed with the talent in all aspects. If we can sustain the talent and productivity levels, this factory can emerge one of our best shoe factories in the world,” said Tapesh Sinha, vice-president, Cheyyar SEZ Developers.
Feng Tay has 11 factories across the world for manufacture of footwear. The Cheyyar unit will initially export to the US markets.

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