On Running has opened a new, largely automated production facility in Busan, South Korea, and said it intends to establish additional robot-driven factories in the United States and Europe as part of a strategy to accelerate manufacturing and shorten delivery times to core markets.
The Busan plant relies on robotic systems to assemble running shoes and represents a significant scale-up of On's automated manufacturing efforts. The company said the new facility, equipped with 32 robots, follows the firm's first robot factory in Zurich, which began production in July last year with four robots.
On described the Busan site as capable of producing about 1,000 pairs of shoes per day. The factory uses a spray-on technique for the upper - a process that applies material from a robot arm onto a mold to create a sock-like upper in a single step. That method condenses what would traditionally be a 200-step upper manufacturing sequence spread across multiple facilities into one automated process.
On first showcased the spray-on upper, branded LightSpray, during the Paris Olympics in 2024. The company markets LightSpray as a breakthrough for weight reduction in marathon shoes. The shoes were worn by On-sponsored athlete Hellen Obiri when she won the New York Marathon in November.
Company co-founder Caspar Coppetti positioned the move toward automation and localised production as a response to multiple pressures on the industry. Coppetti said automation allows On to make shoes more quickly, reduce environmental impact and manufacture closer to its major consumer markets compared with the more common model of shipping finished shoes from South-East Asian and Chinese factories to customers in the United States and Europe. He added: "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."
On's latest annual report states that the company currently sources 90% of its shoes from third-party manufacturers in Vietnam and 10% from Indonesia. The new automated facilities form part of an effort to diversify production and shorten supply chains.
The company highlighted tariffs as another motivating factor. On said planned robot factories in the United States would help reduce tariff exposure. The sportswear sector has faced steep tariffs imposed by the United States on manufacturing hubs such as Vietnam and China, which have pressured costs over the past year. A recent Supreme Court ruling against tariffs, handed down last Friday, added to uncertainty for retailers and importers; Coppetti called for greater clarity and for freer trade.
On was founded in Switzerland in 2010. The expansion of automated production in Busan is a marked increase from the initial Zurich site and signals the companys intent to scale robotic manufacturing techniques as a strategic response to rising costs, logistics risks and changing global trade dynamics.
The move aligns with a broader industry trend in which some brands and retailers are exploring "nearshoring" - bringing manufacturing closer to major consumer markets - to mitigate the effects of tariff changes, supply disruptions and geopolitical risk. On's approach pairs nearshoring with automation, which the company says can speed time to market and reduce environmental footprint compared with the conventional model of long-distance shipping from Southeast Asia and China.
Summary
On has opened a 32-robot factory in Busan that can produce about 1,000 pairs of shoes daily using a spray-on upper technique. The firm plans additional robot factories in the U.S. and Europe to accelerate production and limit tariff exposure, while responding to supply-chain disruptions and geopolitical risk. On currently sources 90% of its shoes from Vietnam and 10% from Indonesia, according to its annual report.
Key points
- Automation and nearshoring aim to reduce lead times and environmental impact while moving production closer to consumers - implications for footwear manufacturing and retail distribution.
- Busan factory scales On's automated capability to 32 robots from Zurich's initial four, supporting about 1,000 pairs per day via a single-step spray-on upper process.
- Tariffs and trade uncertainty are driving strategic shifts in manufacturing location and investment - relevant to apparel, footwear and import-dependent retail sectors.
Risks and uncertainties
- Tariff volatility - steep U.S. tariffs on countries such as Vietnam and China have increased costs; recent Supreme Court action against tariffs has added uncertainty for retailers and importers. This impacts cost structures across the apparel and footwear supply chain.
- Execution and scaling risk - expanding automated production from pilot sites to larger facilities requires operational discipline and capital allocation; manufacturing and industrial sectors could be affected if scaling proves slower or costlier than planned.
- Geopolitical and supply-chain disruption - ongoing geopolitical risks and supply-chain instability were cited as reasons for nearshoring and automation, affecting logistics, sourcing and retail inventory planning.