Shimano Starts 3-speed Gear Hub Production in Singapore

NUNSPEET, Netherlands (November 5) - Shimano recently started the first test production runs of 3-speed hub gears in its factory in Singapore. The global operating component maker will be able to supply - dumping duty free - 3-speed coaster brake gear hubs from January 2002 on. According to Shimano's European MD, Sato Yuasa, the move to Singapore has nothing to do with the recent imposition of anti-dumping duties on Shimano produced hub gears in Japan. Months before SRAM filed his complaint at the European Commission, in February 2000 Shimano decided to shift the production of this specific hub gear version. "Because the 3-speed hub with coaster brake is a very price sensitive product as it is mainly used in kid bikes and mass market bikes, we decided to move the production from Japan to Singapore. Another reason for the move," explains Shimano's Sato Yuasa, "is that we cannot sell this specific 3-speed coaster brake product on our home market." Shimano Singapore will produce only 3-speed hubs with coaster brakes for prices that are expected to be lower than the current prices for this specific component. "However, because we have to maintain our quality and functions standards, there will not be a significant price decrease. It is not our purpose to match competitors prices that are almost 20% lower than current prices for Shimano 3-speed hubs" says Sato.(JO)