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BH Shifts Production to Portugal and Asia

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Strong competition and ‘differences in cost structures’ prompted Bicicletas de Alava, S.A., better known as BH Bikes, to shift their production to another location and to close its production facility in Vitoria. “The headquarters of the company

BH Shifts Production to Portugal and Asia

VITORIA, Spain – Strong competition and ‘differences in cost structures’ prompted Bicicletas de Álava, S.A., better known as BH Bikes, to shift their production to another location and to close its production facility in Vitoria.

“The headquarters of the company will remain in Vitoria”, explains Alex Zuloaga, Marketing Manager of BH bikes. “The most important change is that we are moving the production from Vitoria to Portugal and Asia. BH has always been and will remain a Spanish company.”

“Only one and a half year ago we invested substantially in a new automatic warehouse in Vitoria. Also our R&D, engineering, logistic, marketing, sales and QC departments will stay here. These departments will even be enlarged for which we are hiring new staff. Today some 100 people are working at BH Bikes of which 38 will be laid-off due to the reorganization.”

The BH production facility is to close in the coming months. “It’s nothing new to the bicycle industry to relocate production to low cost countries”, says Zuloaga. “The current business model requires manufacturing in Portugal and Asia. ”

 

 

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