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Taiwan Makers Boost High-End Bike Production

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Taiwans top two bicycle manufacturers are investing heavily in an expansion of their production capacity and are allocating a sizeable part of the investments for high-end bikes. With its new Kunshan, China facility Giant is doubling its production of

Taiwan Makers Boost High-End Bike Production

TAIPEI, Taiwan – Taiwan’s top two bicycle manufacturers are investing heavily in an expansion of their production capacity and are allocating a sizeable part of the investments for high-end bikes. With its new Kunshan, China facility Giant is doubling its production of carbon bikes.

According to a recent report by the China Economic News Service, Giant’s new Kunshan facility, which will become operational in the second quarter of 2011, will have an annual output of 200,000 bikes with carbon frames. Currently the world biggest bike maker produces 100,000 carbon bikes in its Taichung, Taiwan plant. Alloy frames will also be produced at the new Kunshan facility.

Taiwan’s number two manufacturer, Merida has poured TWD 250 million (€ 6.4 mn) since August 2010 into capacity expansion by procuring new production equipment and improving production lines in its factories in Taiwan and China. The expansion is to be completed in April, 2011.

Merida’s financial results improved strongly in the first three quarters of 2010. The company reported sales revenue of TWD 1.285 billion (€ 32.7 mn) for November, up 26.3% from a year earlier, driving up its aggregate revenue to TWD 11.074 billion (€ 282 mn) for the past 11 months of 2010, rising 8.94% from a year earlier.

Merida indicated that the revenue was mainly driven by strong bicycle sales, which grew 5.1% yearly to 78,500 units in the month. Profit of Taiwan’s second biggest bike maker stood at TWD 120 million (€ 3.1 mn) in the first three quarters of 2010. The figure is six times higher than the corresponding one posted in the same period of 2009. 

 

 

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