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Derby Cycle Germany to Close Rostock Facility

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CLOPPENBURG, Germany (November 1) – Derby Germany is planning to concentrate its production in Cloppenburg. A press release issued yesterday states that negotiations involving the concentration of the production are taking place now. The only remaining company of the former Derby Cycle Corporation, which is still using the Derby name instead of Raleigh, has already […]

CLOPPENBURG, Germany (November 1) – Derby Germany is planning to concentrate its production in Cloppenburg. A press release issued yesterday states that negotiations involving the concentration of the production are taking place now.
The only remaining company of the former Derby Cycle Corporation, which is still using the Derby name instead of Raleigh, has already some months ago shifted welding robots from its Rostock facility to its factory in Cloppenburg. This move triggered rumours that Rostock would be closed which at that time were vigorously denied by the companies’ management. The Derby Germany press release states that talks with all parties concerned in the closing down of Rostock have been planned.
The announcement of the planned closing of Rostock comes after the recent sale of the Winora Group from Derby Germany to the Dutch Accell Group. It remains to be seen whether the closing down of Rostock and the sale of the Winora Group will be sufficient to solve the deep troubles of Derby Germany. A huge drop in bike sales causes these troubles. During the first half year of 2001 Derby Germany sold 316,000 bicycles, a 34% drop compared to the 477,000 units that were sold during the first six months of 2000. (JO)

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