New Bangladesh Bike Producer Starts EU Export in May
TAIPEI, Taiwan – PRAN-RFL Group, the Bangladeshi food-products company that is making an entry in the bicycle sector, visited the Taipei Cycle Show. Here officials from the company updated Bike Europe on the construction of the production facility from where bike export to Europe is to start next June.
The largest food and nutrition producer in Bangladesh is investing 10 million US dollar in a bicycle assembly plant near Dhaka which is primarily focused on export to the European Union markets. The plant is housed in a three storey building. Rims are already produced here and the installation of a Taiwan made painting line is taking place currently.
Dedicated assembly lines
A frame and fork factory is also under construction. Here steel frames will be produced destined to be used for low-end bikes. High-end bikes are to be produced at dedicated assembly lines. These bikes, focused on export to the EU markets, will be equipped with wheels coming of automated wheel-building lines.
Duty free EU export
Production for the local market is to start next month at the PRAN-RFL bike factory. Export to Europe is to commence next June. Of course the new Generalised Scheme of Preferences (GSP) which went into force per January 1, 2014 and runs up to December 31, 2016, is the driving force behind the company’s decision to start the bike factory. GSP allows (under special conditions) for Bangladesh (and Cambodia) to export bicycles, parts & accessories to the EU’s 28 member states without the regular 14% import duty on complete bicycles and 4.7% duty on imported parts and accessories.
Bangladesh is already for some years benefitting from these EU trade incentives that boosted the country’s bicycle and bike products export to the EU. In the first ten months of 2013 Bangladesh exported 435,530 bikes to the EU; up 7.4% compared to the same period in 2012. Meghna is currently the country’s biggest bike exporter. Bangladesh is Europe’s 5th biggest bike supplying country after Taiwan, Cambodia, Philippines and Thailand.