Giant Starts Building New Facility in Hungary
BUDAPEST, Hungary – The Giant Group announced today it will expand its footprint in Europe by establishing a second production facility which will be located in Hungary. Giant Group’s Chairperson Bonnie Tu, Giant CEO Young Liu and Hungarian’s Deputy Minister of Foreign Affairs and Trade Magyar Levente, jointly announced the investment yesterday.
Later today Bonnie Tu and Young Liu will preside over a ground-breaking ceremony of the new facility, which is located in the city of Gyöngyös, about 80km from Budapest in northern Hungary. Earlier this week Giant Group already announced a 15 million euro investment in a new distribution centre near the company’s existing factory in the Netherlands.
Production close to the market
“With the ever-changing global landscape, having a production facility located close to the market, which can be quick to respond to market demands, is an inevitable trend in the modern business world,” said Bonnie Tu. “Hungary’s ideal geographical location within central Europe and its well-established transportation system will enable Giant to distribute our products to Eastern Europe as well as to mainland Europe.” This was mentioned during the press conference as one of the key factors in choosing Hungary as the base for our second production facility in Europe instead of expanding the existing factory in Lelystad, the Netherlands.
‘More than just another manufacturer for Hungary’
“With this greenfield investment Giant is not only becoming the number one bicycle manufacturer and exporter in Hungary, but a significant player in the region of Gyöngyös.” Said President of HIPA (Hungarian Investment Promotion Agency) Robert Esik. “Giant’s presence also gives the opportunity to build a strong supplier chain with the involvement of local suppliers thus contributing to the strengthening of the national bicycle industry. I believe that Giant will mean much more to Hungary than the presence of a manufacturing company as through its enhanced sales and services network is will also promote the cycling culture and enhance the popularity of the cycling sports as well.”
By the way; whether Giant will become Hungary’s number one bike maker with its new facility is questionable. In particular as Accell operates a sizeable production plant named Accell Hunland in the country. Also Bosch eMobility systems produces its e-bike mid-motors here.
“Establishing a production facility in Europe will also help reduce tax and transportation costs, improving Giant’s competitiveness and expanding Giant’s market position,” the company stated today.
48 million investments in total
The new Giant Hungary plant will occupy a land of around 22 hectares. This long-term investment is planned to be carried out in three phases with the first phase bringing in an estimated capital spending of around 15 million euro and an estimated total investment of 48 million euro after the three phases are completed. The construction of the first phase of this production facility is expected to be completed for production beginning in the second half of 2019. Initial production capacity is planned to be around 300,000 units and will focus on core European bicycle and e-bike models.