Expanding Nike to set up new HQ in Shanghai
After celebrating the 30th anniversary of its China operations last year, Nike plans to boost infrastructure spending by establishing its new corporate headquarters in Shanghai's Yangpu district to support the rapidly growing business in its second-largest market after the United States.
The sporting goods giant yesterday said it signed a long-term lease for an undisclosed amount with Tishman Speyer, which will build a complex spanning 54,575 square metres at the Springs, a high-end residential and office project.
The strategic investment follows steady gains in Nike's mainland, Hong Kong and Taiwan operations. Last year, the company reported for the first time revenue of more than US$2 billion in China for its financial year to May.
'This new headquarters will allow us to elevate and expand on our facilities and capabilities, while bringing all of our Shanghai-based employees together from our portfolio of Nike brands into one central campus,' said Craig Cheek, a general manager at the firm's China operations.
On completion in 2014, the Nike complex will include up to three office buildings, a soccer pitch and a basketball court. By comparison, Nike's global headquarters in Oregon comprise 17 buildings with an area of 185,806 sqmetres.
The new Shanghai campus would follow the opening of Nike's largest logistics centre in Taicang, Jiangsu province, in February last year, which handles all inbound and outbound Nike products.
Hans van Alebeek, the vice-president of global operations and technology at Nike, said the logistics centre 'is helping to redefine how large-scale facilities can operate more sustainably' on the mainland.
The centre aims to reduce overall energy consumption with industry-leading features such as a highly reflective roof, energy management system, vacuum sewerage and use of natural light.
Nike's new Shanghai headquarters is expected to provide similar 'green' features, with international architects and environmental consultants involved in the project.
The company designs, markets and distributes athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. It posted US$5.7 billion in global revenue in its financial quarter to November. Its subsidiaries include Converse, Cole Haan, soccer brand Umbro and youth lifestyle-focused Hurley International.
'When we broke ground for the Springs in June [last year], we were confident that world-class companies would recognise the value and importance of establishing a presence in Shanghai,' Tishman Speyer co-chief executives Jerry Speyer and Rob Speyer said. 'The creation of the Nike greater China headquarters at the Springs underscores the strength of the [Shanghai] market.'
Covering an area of 900,230 sqmetres, the Springs represents the largest mixed-use development on the mainland for New York-based Tishman Speyer.