On Launches South Korea Robot Factory to Strengthen Supply Chain Resilience
Sportswear manufacturer On Running has inaugurated an advanced robot factory in Busan, South Korea, focused on producing running shoes. This development, announced recently, is part of the company’s strategy to enhance its manufacturing speed and efficiency through automation while positioning itself closer to key markets in response to evolving global supply chain dynamics.
Industry Reactions to Supply Chain Challenges
The decision to establish a manufacturing facility in South Korea comes amid rising tariffs imposed by the United States, ongoing supply chain disruptions, and geopolitical risks that have prompted several retailers to consider “nearshoring.” This process involves relocating production closer to the end consumer to mitigate logistical challenges.
Caspar Coppetti, co-founder of On, emphasized that automation allows for quicker production times and reduced environmental impact. He noted that the traditional model of manufacturing and shipping finished shoes from factories in Southeast Asia and China is becoming less viable. “The speed to market, sustainability, and the diminishing availability of inexpensive labor are all compelling arguments for automation and localizing production,” Coppetti stated.
Currently, On sources 90% of its footwear from third-party manufacturers in Vietnam and 10% from Indonesia, as indicated in its latest annual report.
Innovative Manufacturing Techniques
The newly opened factory in Busan boasts a workforce of 32 robots, representing a significant expansion from On’s initial factory in Zurich, which initiated production in July with just four robots. The Busan facility has the capacity to manufacture approximately 1,000 pairs of shoes daily. Significantly, the production method employed utilizes a robot arm to spray material onto a mold, simplifying what has traditionally been a 200-step process across multiple factories into a more streamlined automated procedure.
This innovation was first showcased through On’s “LightSpray” marathon running shoe during the 2024 Paris Olympics, aligning with the company’s commitment to modern manufacturing practices.
Financial Considerations in Manufacturing Strategy
On’s strategic expansion into the US market with additional robot factories aims to decrease tariff expenses. The steep tariffs affecting sporting goods imported from manufacturing hubs like Vietnam and China have increased operational costs across the industry. Recent Supreme Court decisions regarding tariffs have further contributed to uncertainty in the market, prompting calls for clearer regulatory frameworks and enhanced trade agreements.
In a competitive landscape featuring giants like Nike and Adidas, On is focused on creating an advantage through innovation. The LightSpray has been marketed as a revolutionary product due to its lightweight design, aimed at both elite athletes and amateur runners aiming to improve their performance. Notably, On-sponsored athlete Hellen Obiri wore these shoes to victory at the New York Marathon in November, solidifying the brand’s presence in high-stakes competition.
For more insights into the shifting dynamics of the global sportswear industry, refer to our recent analysis on supply chain trends.
Published on 2026-02-25 10:30:00 • By Editorial Desk • Category: Lifestyle
