Herrmans Expanding Production Capacity with 50%
PIETARSAARI, Finland – Finnish component manufacturer Herrmans Oy Ab announces that it is to expand its production facilities for bicycle components by 50% in the next five years. Reason for the big expansion is Herrmans’ confidence in the growth of cycling as well as in its speed to market capabilities allowing for swift deliveries and flexibility to European bike factories.
Another reason for the expansion is, says Herrmans CEO Tom Nordström, “The fact that we are reaching the limits of our current capacity as we have achieved significant sales growth in the last years.”
Significant increase in production lines
Herrmans expansion will comprise a total of 1,800m² of which 1,400m² will be factory and 400m² will extend the high ceiling warehouse. The enlargement will allow for a significant increase in the number of production lines. The buildings will be completed by the end of 2016 allowing for an increase in production capacity by approximately 50% within the next five years. An extra staff of 25 is needed to man the new production lines and machines.
“The expansion is based on our five-year plan where we see further growth in all our bike component segments, but especially with the front and rear lights products,” says Nordström. Herrmans is the leading European manufacturer of grips, reflectors and rim tapes, with an increasing market share of bicycle lights and chain guards. The company provides components to the majority of bicycle factories in Europe.
Swift deliveries and flexibility
According to the Herrmans CEO the future success of European component manufacturing is based on the proximity to the European factories, allowing for swift deliveries and flexibility. “We better understand the needs of our European clients, while the European type approvals of the products give customers peace-of-mind.”
Beyond Europe, Herrmans sees growth potential in various segments in North America and Asia. To be able to respond to the pricing from low-cost countries Herrmans has invested a lot in automation. In addition the company has a strong R&D department that designs its own products and utilizes modern tools, i.e. the company’s own state-of-the-art light laboratory. Herrmans Oy Ab has been part of the bicycle industry for 57-years under the brand Herrmans. Under the brand Nordic Lights the company designs and manufactures hi-end work lights and driving lights for heavy duty applications.