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Taiwan Troubles: Shock Works Stops; Cyclone’s Factory Stripped by Creditors

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KAOHSIUNG, Taiwan (October 30) – One of Taiwan’s better names in high-end suspension parts, Shock Works, recently announced that it will cease production of bicycle parts and make its last deliveries in mid-December. The Shock Works brand is manufactured by Kaifa Industry Co, which has been making bicycle parts since 1993. While the company’s bicycle […]

KAOHSIUNG, Taiwan (October 30) – One of Taiwan’s better names in high-end suspension parts, Shock Works, recently announced that it will cease production of bicycle parts and make its last deliveries in mid-December. The Shock Works brand is manufactured by Kaifa Industry Co, which has been making bicycle parts since 1993. While the company’s bicycle business will close, its motorcycle and auto parts businesses will continue. Bicycle parts manufacturing has never accounted for more than a small percentage of annual revenues and production has been limited to Taiwan.
Cyclone Precision, Inc. (CPI), a maker of cranks and chainwheels, has ceased to exist since early October when creditors ransacked the factory in an effort to collect debts. Creditors raided CPI’s plant while executives were at the Interbike exhibition, held from October 6 through 8, industry sources said. When the Cyclone team returned, their factory had been stripped.
Tien Hsin Industries general manager Douglas Chiang said his company had purchased all of Cyclone’s molds from the company’s creditors. Tien Hsin also manufactures chainwheels and cranks, as well as head parts and bottom bracket parts. Tien Hsin Industries will immediately start production and shipment of products that have been ordered by bike makers and OEM suppliers (see also the Newspages of this website).
Cyclone was founded in 1992. The company’s web site has not been updated since 1998. It describes the company as having total capital of USD1.6 million, 95 employees, and production capacity of 230,000 sets per month. One industry source however put the company’s recent number of employees at well below 95.(DF)

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