Shimano Considers to Move Hub Gear Production to EU

NUNSPEET, Netherlands (November 9) - Next to the move of the 3-speed hub gear production to Singapore, which was announced November 1 on this website, the obvious question is what Shimano is planning with regard to its 4 and 7-speed Nexus hub gears. By the way, these are products like the 3-speed coaster brake, which Shimano is not selling (or only in very limited quantities) on its home market. According to Shimano Europe managing director Sato Yuasa, Shimano will not move the 4 and 7 speeds to Singapore. He stated, "However, considering a further move of our hub gear production outside Japan is a logical next step. Not so long ago, Mr. Yoshizo Shimano already stated in an interview with Bike Europe that Shimano has to produce close to its markets. At this moment we are considering a move of our 4 and 7-speed hub production to our new facility in the Czech Republic. The construction of this new factory will be completed by the end of November. We have already about 60 employees in our Czech company who are being trained now. We expect to employ about 300 workers within two years for our new Czech facility, which will start production in 2002 with Tourney level components. When we decide to move our Nexus hub gear production to Europe and more specifically to our Czech facility, it will take at least another two to three years before production in the Czech Republic is on the same quality level and volume as it is now in Japan." More about Shimano's reaction on the imposed duties in Bike Europe's November edition. This report includes SRAM's reaction, views the EU hub gear market and the third player on this market, Sun Race Sturmey-Archer. Bike Europe's November edition which will be mailed end November. (JO)