On Running Unveils Robot Factory in South Korea to Revolutionise Shoe Production
Major sportswear brand On Running has launched a new robot-powered manufacturing facility in Busan, South Korea, marking a significant strategic shift in its production approach. This move is part of a broader plan to establish additional automated factories in the United States and Europe, with the goal of dramatically speeding up production and delivery times in response to mounting global supply chain pressures.
Driving Forces Behind the Automation Push
The pivot towards "nearshoring" – bringing manufacturing closer to end consumers – is motivated by several critical factors. These include recent tariff increases imposed by the United States, ongoing supply chain disruptions, and rising geopolitical risks. Caspar Coppetti, co-founder of On, emphasised the benefits of automation, noting it enables the brand to produce shoes more quickly, with a smaller environmental footprint, and nearer to its key markets.
"The speed to market and the sustainability of it and also the fact that basically we're running out of places with cheap labour are all speaking for automation and going closer to where consumers are," Coppetti explained. This contrasts sharply with the traditional footwear manufacturing model, which typically involves shipping finished products from factories in South-East Asia and China to consumers in the US and Europe.
Current Production and Innovative Technology
Currently, On sources 90 per cent of its footwear from third-party manufacturers in Vietnam and the remaining 10 per cent from Indonesia, according to its latest annual report. The company first introduced its innovative "LightSpray" marathon running shoe during the Paris Olympics in 2024. This groundbreaking design utilises a robot arm that sprays material onto a mould to create a seamless, sock-like upper, streamlining the manufacturing process.
Expansion and Efficiency Gains
The Busan facility, equipped with 32 robots, represents a substantial expansion from On's initial automated factory in Zurich, which began production in July last year with just four robots. The South Korean plant boasts a daily output of approximately 1,000 pairs of shoes. The spray-on method condenses what was traditionally a 200-step upper manufacturing process, spread across multiple factories, into a single, highly efficient automated operation.
Tariff Mitigation and Market Competition
The Swiss-founded company, established in 2010, indicated that planned robot factories in the US would also help mitigate its tariff costs. Steep tariffs levied by the US on sportswear manufacturing hubs such as Vietnam and China have significantly impacted the industry over the past year, driving up operational expenses. A recent Supreme Court ruling against tariffs has further complicated matters for retailers and importers, prompting Mr Coppetti to call for greater clarity and a push for free trade.
In a fiercely competitive market, where brands like Nike and Adidas vie to produce the fastest marathon shoes for both elite athletes and amateur runners, On has positioned its LightSpray as a revolutionary product due to its exceptional lightness. On-sponsored athlete Hellen Obiri notably wore the shoes when she triumphed at the New York Marathon in November, showcasing the brand's commitment to innovation and performance.
