Update from Adidas: Adidas Group does not source from the factory which is affected by the strike. Pou Chen Group’s factory “Yue Yuen” is an adidas Group supplier, but the adidas Group production facility in Dongguan/China, called Y6, is fully operational.

Democratic Underground on Wednesday reported that up to 5,000 workers have gone on strike in China at the world's largest sports shoe maker. The company supplies shoes to Nike Inc (NYSE: NKE) and Adidas, among others.

The strike at the Yue Yuen Industrial Holdings factory in Dongguan, a Guangdong province, started due to cost-cutting production changes. Adidas said it does not source from the location.

The factory's Hong Kong-based investor relations director Jerry Shum confirmed a strike had started but declined to comment which brands were affected.

He added that the company is "in control" of the situation and a resolution is expected to occur within a few days.

New York-based China Labour Watch said the workers were demanding an immediate payout of their housing fund amid a move to merge two plants.

A strike at the same factory was called off last year after tens of thousands of workers saw their demands met for improving benefits.

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