GOODYEAR, Ariz. — Nike is canceling its plans for a manufacturing plant that was set to cost nearly $200 million and bring more than 500 full-time jobs to Goodyear. The company is citing the coronavirus pandemic as the reason for the withdrawal.
You may remember from early July 2019 when Gov. Doug Ducey was at the center of controversy involving the potential Nike plant, tweeting "Arizona’s economy is doing just fine without Nike. We don’t need to suck up to companies that consciously denigrate our nation’s history.”
This was Ducey’s response to Nike after the company reportedly pulled a shoe featuring an older version of the American flag. A Washington Post report said Nike's decision to pull the shoe had to do with former NFL quarterback and current activist Colin Kaepernick telling the company they shouldn't sell the shoe because it contains a symbol that he and others find offensive.
“Nike has chosen not to release the Air Max 1 Quick Strike Fourth of July as it featured an old version of the American flag,” the company said in a statement last year.
The Arizona Commerce Authority, at Ducey's direction, pulled a $1 million grant from the company. The money, however, was "purely discretionary," the commerce authority said in a statement at the time.
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The Goodyear mayor said the city would honor its agreement with Nike.
A little more than a week after his initial tweets, Ducey tweeted his support of the project. He said the deal was good news for Arizona and Nike was welcome here.
Nike lost $790 million in the quarter ending May 31 as the pandemic forced the closure of most of its stores around the world.
Nike sent the following statement to 12 News regarding the manufacturing plant:
“We are experiencing unprecedented times and due to the COVID-19 impact we will no longer be investing in our Goodyear facility. We are repositioning our resources to further invest against our biggest opportunities and Air MI will continue to be an important part of Nike’s growth strategy. We thank the City of Goodyear and the team we have worked with to date; they have been outstanding partners.”