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Cycleurope's Øglaend DBS Ceases Production in Norway

0 433 Sales & Trends

OSLO, Norway (2 March 2000)--On 25 February the board of directors of Norway's largest (and only) bicycle manufacturer and Cycleurope brand Øglaend DBS announced that the company was ceasing production in its Sandnes, Norway, facility. Øglaend DBS bicycles will now be produced in Cycleurope's other factories in Sweden (45,000 bikes), Denmark (19,000) and the Far East (30,000). Last year Øglaend DBS posted a NOK8.8 million loss, reportedly the largest loss of all of Cycleurope's brands. Øglaend DBS currently has a 28% share of Norway's bike market, with total sales of approximately 270,000 units. Its remaining production is sold in Sweden and Finland. The Norwegian market is under enormous pressure, due primarily to the fact that bikes originating from the Far East have only to pay a 3% import tariff. Manufacturing in Norway will cease sometime between June and August. Approximately 130 people at the Sandnes factory will be laid off. The company's administration and product development divisions will however remain in Sandnes. Cycleurope has in fact stated it has plans to increase the capacity of Øglaend DBS's R&D. During its discussions with the labor union and Øglaend DBS's management, Cycleurope has stated that the decision was expected and inevitable due to the international competition and Europe's high wages. Cycleurope was unavailable for comment. The Norwegian daily Stavanger Aftenblad has been following the entire process very closely. (HK)

by Bike Europe last update:21 Mar 2006

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