Keen returns some manufacturing to Portland

Oregonian:

Tucked among the anonymous warehouses on Swan Island near the Willamette River, Keen Footwear has quietly started assembling boots -- something American industry has largely relegated to Asia in recent decades.

The Portland factory figures to make only a fraction of Keen's shoes and boots. The uppers for the products -- everything above the soles -- will still be shipped from Asia.

But by opening a plant in North Portland, the company is making a statement.

"It's not so much flying our flag in America," said James Curleigh, Keen's chief executive, though a tiny American flag is expected to be stitch on some of the products. "It's about having sourcing options for the future."

Keen, which moved its headquarters to Portland from Alameda, Calif., only four years ago, has been planning a Portland-based manufacturing plant since early 2008. The company sees these advantages to making products in its own backyard:

Proprietary knowledge. Like other footwear makers, Keen runs the risk of having its designs pirated when it uses partner manufacturing overseas. Prototype convenience. Bringing a prototype from drawing board to factory can be a time-consuming, expensive process. With the Portland plant, the prototype process can be reduced to a few days.

Transportation costs. Shipping products by sea or air to Keen's largest market -- the United States -- won't be necessary for boots and shoes built on Swan Island. Community presence: The plant employs local workers and will try to make shoes in an environmentally friendly way.

Keen, which is privately held, has invested between $2 million to $3 million in the plant -- dubbed the PM Factory, for "Portland Manufacturing."

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