Nike Withdraws Plans For Manufacturing Plant Near Phoenix

Nike Withdraws Plans For Manufacturing Plant Near Phoenix

Nike Inc. said it is canceling plans to open a plant in Goodyear, AZ, just outside of Phoenix, AZ to make soles for its Nike Air shoes as part of its Nike Air Manufacturing Innovation (Air MI) program.

“We are experiencing unprecedented times and due to the COVID-19 impact we will no longer be investing in our Goodyear facility,” Nike said in a statement. “We are repositioning our resources to further invest against our biggest opportunities and Air MI will continue to be an important part of Nike’s growth strategy. We thank the City of Goodyear and the team we have worked with to date; they have been outstanding partners.”

In July 2019, Nike announced it is investing $184 million in its U.S. innovation footprint by opening a new Nike Air Manufacturing Innovation (Air MI) facility in Goodyear. It was expected to create more than 500 jobs and represent Nike’s third manufacturing center dedicated to manufacturing Nike Air alongside Nike Air MI’s existing facilities in Oregon and Missouri.

Nike acquired the Lincoln Logistics 40 building in Goodyear for $70 million in August 2019.

Production was expected to start early this year but a city of Goodyear spokeswoman told the Phoenix Business Journal the plant never opened and remained under construction for tenant improvements.

“The city of Goodyear was very much looking forward to the opening of the Nike facility in our great city,” city of Goodyear officials said in a statement. “While we are disappointed, we recognize and appreciate the many challenges and difficult decisions businesses are faced with as a result of current economic realities.”