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TAICHUNG, Taiwan – End of 2009 the world’s leading bicycle producer Giant Manufacturing Co. Ltd. announced to invest US$ 15 million (€ 10.5mn) in a new factory in China. According to Taiwan Economic News the new over 500 acres facility will be in Kunshan City, in the Suzhou province. The new factory will produce bicycle frames and front forks. Bike assembly will also be part of the new facility for which construction will start in the first half of 2010.

The announcement of the new factory came as a surprise to many in the (Asian) bike business. In particular taken into account that in August 2009 Giant communicated the merger of its two already existing wholly-owned Kunshan-based factories. This decision was made as part of an ‘internal reorganization’. On December 24 Giant announced the cancellation of this merger. Seven days later – on  December 31 – the Taiwan based bike producer announced the investment in a new (third) wholly-owned factory in Kunshan. No further details about this sudden strategy change were issued.

Nevertheless, according to Taiwan Economic News Giant’s new strategy is the result of: “The continuously growing demand in the China’s domestic market.” Therefore Giant is not only adding a 6th factory to its China-based production but will also set up a new production line at its Tianjin-based factory. This is the company’s biggest factory in China. The new production line will raise the company’s Tianjin plant production 2010 by 30,000 to all in all one million units.

Including the 6th factory and with the extra production line in its Tianjin facility Giant’s yearly production in China will increaser from the current 4.2 million to 5 million bikes in 2010. Next to this huge number of regular bicycles, Giant is also producing about 400,000 e-Bikes in China.

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