Govecs Secures Production Capacity in Europe for E-Scooters
MUNICH, Germany – German Govecs AG, the e-scooter company founded in 2009, announced last week that it started a cooperation with Spanish light motorcycle producer Rieju SA. The cooperation means that Govecs buys all rights on Rieju’s e-scooter model ‘Flexy’ which will be further developed and marketed by Govecs. Production will take place at Rieju.
The cooperation with the Spanish motorcycle maker comes after Govecs announced to extend its IPO to 8 November. End of last month the company also made public that it signed a letter of intent for the delivery of 6,000 e-scooters which will be made available for rent in London. Furthermore, on 2 October Govecs, the self- proclaimed “leading European e-scooter supplier” launched its retail platform HappyScooter.
With the Flexy e-scooter Govecs is expanding its offering with a mid-priced model. According to Govecs the Flexy is fitting into the company’s target group strategy eyeing “sharing providers, delivery services and end users”. The company notes further that Flexy’s series production is to take place at Rieju on behalf of Govecs.
Securing production capacity in Europe
With the Flexy purchase the Munich-based e-scooter company is also securing “additional production capacity for the production of up to 12,000 electric scooters per year in Europe.” This includes the production of Elmoto-branded models. Last July Govecs acquired the light e-motorcycle pioneer Elmoto from ID-Bike GmbH.
Govecs will have more e-scooters produced at the Rieju facility in Figueres, Spain which is located close to the French border. Rieju’s production capacity should be sufficient to cover all expected production needs and to fulfill Govecs growth strategy faster and more cost-effective up to the year 2021.
Reduced investment in Poland
Thanks to the cooperation with Rieju the Munich based Govecs Group expects that its planned investment in the expansion of its own production facility in Wrocław, Poland, “can be reduced by up to 10 million euro.” This news is likely to interest shareholders who look forward to the IPO of Govecs AG. More at www.govecsgroup.com