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TAICHUNG, Taiwan – The Taiwanese bike industry is investing heavily in adding production capacity and/or upgrading its facilities.

During Bike Europe’s recent visits to the country which took place last October and December, numerous companies announced to work on new facilities or expanding existing ones. And they are helped by Taiwan’s former enemy; the People’s Republic of China.

Old hands in the bike industry surely remember flying into Taipei Airport (at that time still called Chiang Kai-shek) for the Taipei Int’l Cycle Show and being welcomed by anti-aircraft guns. This took place years ago when tension between the two countries reached red alert levels with the US sixth fleet rushing to the region.

Things have changed since then. Better said is that a complete turnaround is taking place now in the relationship between Taiwan and China since last May a new government took office in Taipei.

Late December China even reached out a hand to Taiwan, offering Taiwanese investors in China US$ 19 billion (€ 13.6bn) in financing over the next three years, the latest in a flurry of economic diplomacy by Beijing.

Investments

These billions of dollars will further stimulate investments by Taiwan companies that were already taking place during 2008. Giant made probably the biggest investment last year with its US$ 12 million costing new Chinese facility in Tianjin’s Jonghai county.

Giant’s huge new facility attracts component makers to open up shop close by. Kenda for instance has built its biggest bicycle tyre factory there which also started its production last year.

These two are not the only Taiwan companies investing heavily as the whole Taiwanese industry had a record breaking year in 2008. TH Industries/FSA (see second photo), Axman Enterprise, JD Components, Sunny Wheel, Pacific Cycles and SR Suntour are all building new facilities or expanding existing ones.

A specification of these Taiwanese investments will be published in the January 09 edition of Bike Europe.