Meghna’s Start Signals Strong Growth in Bangladeshs Bike Production
Recently a proud MD Mizanur Rahman, CEO of the Meghna Group (left on photo), saw the 1st bikes roll off the production line of his new 75,000 sq ft factory Uniglory Cycle Industries. It signals the rapidly growing bike production in
DHAKA, Bangladesh – Recently a proud MD Mizanur Rahman, CEO of the Meghna Group (left on photo), saw the 1st bikes roll off the production line of his new 75,000 sq ft factory – Uniglory Cycle Industries. It signals the rapidly growing bike production in Bangladesh which is stimulated by the strong possibility that Sri Lanka is losing its duty free export status for bikes & parts (see related articles).
In 2008 Bangladesh entered the top ten bike supplying countries of the EU ranking 9th place. The country exported 372.000 units to the EU, a rise of 4.5% related to 2007. The average export value per bike was about € 60.
Bangladesh like Sri Lanka enjoys a duty free export status as stipulated by the European Union in its GSP+ regulations. However, unlike Sri Lanka, Bangladesh is not faced with internal struggles and rebels. There’s no threat the country is about to loose the duty free status which means that exported bikes as well as bike parts can enter the European Union without the regular import duty of 14% on complete bicycles and 4.7% on bike parts.
The new Uniglory Cycle Industries facility has an annual production capacity of about 600,000 bikes. “Our new factory has been established specifically to produce alloy 20 to 26 inch MTB’s and City – Trekking bikes for the European market”, said CEO Mizanur Rahman. “We have installed welding stations using the best Japanese Argon and CO2 equipment supported by new T4 & T6 ovens. The latest automated Taiwan paint and lacquer booths have been upgraded with smaller Japanese discs to achieve a higher quality paint and lacquer finish – a system often used to paint carbon fibre frames.”
Meghna has also invested in new Holland Mechanics assembly and spoke seating machines, a vast over head conveyor storage system, a new web based stock control system, imported high quality specialist lighting from Singapore, a water treatment facility and extensive warehousing including a bonded warehouse facility. Future development plans include the introduction of ECO lead initiatives such as rain water collection and solar panel energy.
Earlier this year, Bike Europe reported on Meghna’s two main goals: expanding to an annual bike export of half a million units in the next five years and developing from an exporter of entry to mid-end bikes to mid and high-end bikes.
“2010 will also see Meghna relocating one of our other assembly plants into another new purpose built facility”, continues Mr. Rahman. “This will lead to further expansion and the introduction of additional specialist equipment to ensure we have the capability to offer our customers the specification and quality they demand.”
Meghna Group exports to all the major European markets providing a full portfolio of products for all channels of distribution with an annual production capacity of circa 600,000 bikes.
Neal Holdsworth, of MTI Meghna’s Sales & Marketing agent for mainland Europe, said “These latest developments give us the scope to produce a higher level of product. With genuine GSP Form A European importers can really benefit from 0% import duty and benefit from a great commercial package that helps them create an edge within their market.”
Follow Bike Europe on Twitter at twitter.com/bikeeurope