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Kinesis Invests To Keep High-End in Taiwan

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TACHIA, Taiwan – (June 4) – At a time when Taiwan’s bicycle industry is moving its factories toward the cheaper labor of its Asian neighbors, Kinesis Industry Co., one of Taiwan’s top frame makers, is reinvesting at home. On May 19, Kinesis officially opened a new factory and administrative complex in Tachia, Taiwan. The total […]

TACHIA, Taiwan – (June 4) – At a time when Taiwan’s bicycle industry is moving its factories toward the cheaper labor of its Asian neighbors, Kinesis Industry Co., one of Taiwan’s top frame makers, is reinvesting at home. On May 19, Kinesis officially opened a new factory and administrative complex in Tachia, Taiwan. The total investment in the new project was TWD 200 million (US$5.9mn;EUR6.9mn). Said Kinesis CEO Tom Jeng, “I hope we can start a new trend.”
In the bicycle industry, new investments in Taiwan have been extremely rare of late. Taiwan’s top maker, Giant Manufacturing, has maintained its Taiwan production at around 800,000 to 1 million units per year in Taiwan while expanding aggressively in China. Last month, another Taiwan heavyweight, MT Racing, opened a brand new factory in Vietnam with a capacity of more than 500,000 mid- to high-end aluminum frame bicycles per year. Jeng explained his radical decision to open a new Taiwan plant, saying, “We are not expanding capacity by this move, we are adding value and intensifying R&D. We know that we have to do something in Taiwan that can’t be reproduced elsewhere.” (DF)

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