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Shimano Likely to Set Up Production in Czech Republic

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OSAKA SAKAI, Japan (15 August 2000) — Shimano is planning to expand its European production in the near future. On 10 August an article appeared in the morning edition of the Nikkei, Japan’s leading financial newspaper, announcing that Shimano will invest JPY5 billion in a production facility in Europe. The newspaper cited the Czech Republic […]

OSAKA SAKAI, Japan (15 August 2000) — Shimano is planning to expand its European production in the near future. On 10 August an article appeared in the morning edition of the Nikkei, Japan’s leading financial newspaper, announcing that Shimano will invest JPY5 billion in a production facility in Europe. The newspaper cited the Czech Republic as the location of the facility. According to the Nikkei article, the factory will be up and running within two years. “We have yet to finalize the location, the amount of money we will invest or what products we will produce there,” says Shimano Europe marketing director Frank Peiffer. “But the report is true. The plans are there.” The Nikkei article also announced that Shimano will invest JPY1 billion in upgrading its Italian facility. The move is not entirely unexpected. Production in Europe minimizes the considerable currency fluctuations between the Japanese yen and the euro. Also, with a possible dumping complaint pending, increasing production in Europe is a necessary and logical step. Also, in a recent interview with Bike Europe (to be published in August issue) Shimano president Yoshizo Shimano said that the goal is “to produce in Europe for Europe.” When asked if that means expanding its current facility in Italy, he answered: “Expansion…doesn’t necessarily have to come in Italy. Right now we’ve got no fixed agenda.” (JW)

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