Tefron: USD 90 million a year
Tefron, Nike launch joint Center of Excellence
Israeli textile company signs agreement to serve as international corporation's primary source in development, manufacture of seamless products; deal expected to yield Tefron USD 90 million a year
Israeli textile company Tefron Ltd. announced Tuesday that it will be launching a joint Center of Excellence with the international Nike corporation, located at Nike's world headquarters in Beaverton, Oregon.
The Center of Excellence will focus on integrating innovation and technology into garment manufacturing, on creating first rate products and on leveraging market trends, Tefron said in a statement.
Through this joint and strategic partnership, it is intended that Tefron will serve as Nike's primary source in the development and manufacture of Nike's seamless products. The Center of Excellence is the result of close collaboration between Nike and Tefron and will be responsible for all aspects of product commercialization for Nike Global, Seamless and Pro projects.
According to the agreement, Tefron will start developing 90 percent of Nike's seamless products.
Nike sells seamless products for USD 500 million a year. Some 20 percent of its revenues are allotted to product development. According to estimations in the textile industry, the joint partnership is expected to yield Tefron annual revenues of USD 90 million in the coming years from developing Nike's seamless products.
'Significant milestone'
Nike officials estimated that the corporation's seamless product sales will grow in the coming 5 years by 500 percent. If the estimation is realized, Tefron's expected revenue from the deal may reach more than USD 500 million a year in the next decade.
Tefron officials stressed that the discussed product line was new and that the company would not reduce its research and development activity in Israel. The deal is not expected to have any ramifications on Tefron's production activity in Israel.
"We are very pleased with this strategic step, which we see as a significant milestone in our growing cooperation with Nike," said Tefron CEO Yos Shiran.
