April 24, 2018 / 8:30 AM / 4 months ago

U.S. tariffs could push Puma to shift production from China

BERLIN (Reuters) - German sportswear maker Puma (PUMG.DE) is working on contingency plans to move some production from China to other Asian markets if U.S. tariffs are imposed on footwear, its chief executive said on Tuesday.

FILE PHOTO: The logo of German sports goods firm Puma is seen on a shoe after the company's annual news conference in Herzogenaurach February 20, 2014. REUTERS/Michaela Rehle/File Photo

Puma currently makes about a third of its products in China and is looking into moving production of goods for the U.S. market to countries like Vietnam and Indonesia, Puma CEO Bjorn Gulden told a conference call for journalists.

Gulden said moving production could take up to 12 months, adding that capacity freed up in Chinese factories could also be used to make products for the booming Chinese market. Other impacts of tariffs could be lower margins or higher prices, he added.

Reporting by Emma Thomasson; Editing by Tom Sims

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