THE ADIDAS GROUP confirmed Tuesday its decision to end its business relationship with SS Venture Inc., which manufactures vulcanized footwear products for brand adidas.

The factory is located in the Mariveles Economic zone in Mariveles, Bataan. It currently employs 447 permanent employees and 241 short-term contract workers.

“It was agreed with the factory owner in early June 2009 that the termination would take place on Dec. 31, 2009,” the adidas Group said in a statement.

The decision to terminate the manufacturing agreement, it said, stemmed from the prevailing adverse conditions in the global export market.

“Despite these conditions, the adidas Group continued to place orders with the supplier, to enable a proper phaseout period and to support the workers’ ongoing employment,” it said.

“However, it now appears that the factory owner is unable to secure financing to continue the factory operation beyond November,” the adidas Group said.

“We regret that we have had to take this action, which has its roots in the current economic crisis,” said HorstStapf, head of footwear sourcing for the adidas Group.

“At this point in time and with Christmas approaching, our primary concern is for the wellbeing of the SS Venture workers and their families. We will continue to engage with the factory and help wherever we can“ added Stapf.