Zotefoams, a Croydon-based manufacturer known for developing the foam technology used in Nike’s high-performance running shoes, has announced plans to restructure its operations, putting over 100 jobs at risk. The company, which supplies the lightweight foam featured in Nike’s long-distance “super shoes” worn by marathon record-holder Eliud Kipchoge, plans to shift a significant portion of its production to Vietnam and Poland.
Founded in 1921 as a rubber manufacturer, Zotefoams has evolved into a specialist in high-performance foams serving various sectors, including aviation, automotive, construction, insulation, and athletic footwear. The company employs approximately 680 people worldwide and counts Nike as its largest customer.
The proposed restructuring at Zotefoams’ historic Croydon facility aims to achieve annual cost savings of around £4 million. According to a company statement, the plan reflects a strategy to transfer high-volume footwear production to its Vietnam operations throughout 2026 and 2027, alongside increased use of manufacturing capacity in Poland and further investment in automation technology. These measures are intended to align Zotefoams’ manufacturing footprint with its long-term customer needs and support future growth.
Ronan Cox, group chief executive, emphasized the need to adjust the size and shape of the UK operations as production ramps up in Vietnam. He noted that decisions regarding individual roles would be made only after consultations with affected employees are completed.
The announcement follows the company’s release of strong half-year financial results. Revenue increased by nearly 25 percent to £95.2 million, while adjusted pre-tax profits rose 34 percent to £15.3 million. Despite the restructuring plans, Zotefoams maintained its full-year guidance, forecasting revenue of £190.8 million and pre-tax profits of £26.3 million.
Following the announcement, Zotefoams’ shares temporarily declined by 0.7 percent in trading. The company’s restructuring efforts illustrate the broader trend of manufacturers shifting production to lower-cost countries while seeking automation advancements to enhance efficiency.