“The Central Distribution Center in Kunshan demonstrates our commitment to continued growth in China and persistent focus on operational excellence in our global supply chain,” said Wiseman. “With the expectation that our business in China will nearly double during the next four years, this represents a significant milestone in our ability to manage long-term costs and inventories, while providing measurable increases in speed-to-market for both our customers and consumers.”
Representing an investment of more than $60 million (RMB 372 million), the Kunshan distribution center is VF’s largest infrastructure investment in China. When operating at capacity, the 85,000-square-meter facility is expected to handle 30 million units of product each year and employ nearly 400 people. The facility was designed to be environmentally friendly and is LEED Bronze certified because of its low carbon footprint. Also, to support future growth, VF has acquired the option for additional land at the Kunshan location for expansion as needed.
In 2013, total revenues in China were more than $500 million. By 2017, VF expects China to contribute nearly $1 billion to total company revenues. VF brands sold in China include: The North Face, Lee, Vans, Timberland, Kipling, 7 For All Mankind, Wrangler and Nautica.
During the past year, VF has added four new distribution centres strategically located to competitively manage costs and source closer to end-user markets. In addition to the China facility, new VF distribution centres have been added in Sint-Niklaas, Belgium; Mexico City, Mexico; Los Angeles, California, USA; and the company reopened its Hackleburg, Alabama facility, which was destroyed as a result of a tornado in April 2011.
