Founded by German cobbler Adi Dassler in 1949, Adidas has shifted most of its production from Europe to Asia and now relies on more than 1 million workers in contract factories, particularly in China and Vietnam.
But Adidas now wants to bring production back closer to its major markets to meet demands for faster delivery of new styles and to counter rising wages in Asia and higher shipping costs.
The new "Speedfactory" in the southern town of Ansbach near its Bavarian headquarters will start production in the first half of 2016 of a robot-made running shoe that combines a machine-knitted upper and springy "Boost" sole made from a bubble-filled polyurethane foam developed by BASF.
"An automated, decentralized and flexible manufacturing process... opens doors for us to be much closer to the market and to where our consumer is," said Chief Executive Herbert Hainer.
Adidas currently makes about 600 million pairs of shoes and items of clothing and accessories a year. It plans to grow sales by almost half again by 2020.