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KMC Invests in Vietnam

Sales & Trends

BINH DUONG, Vietnam – The bicycle chain giant KMC will invest in a new Vietnamese factory. KMC Kuei Meng International Inc. announced last week that it will invest about € 3.6 million in Vietnam in the second half of this year.

KMC Invests in Vietnam
KMC reports that both Merida and Shimano plan to buy KMC shares. Giant already agreed to buy 1.5 million KMC shares. – Photo KMC

It includes covering the construction of a new factory capable of making 15 million chains a year. The facility will be located at the AMATA industrial park and is near KMC’s existing Vietnamese division. This plant produces 10 million chains a year though about 9 million are shipped to motorcycle manufacturers. KMC did not suffer any loss during the anti-China riots and resumed operations.

Numerous OEM bike makers

“The new factory will help us enter the Southeast Asian market,” said KMC president Daniel Wu in the Taipei Times. “Although the gross margin for bicycle chains in Southeast Asia is lower than in other regions, we cannot ignore the bicycle market and its aftersales market in the region.” Next to domestic markets the new KMC facility is also expected to target to numerous OEM bike makers in the region which are focused on export to Europe.

Wu said the company will acquire two companies owned by his family based in southern and eastern China in the next two years.

Merida, Giant and Shimano invest in KMC

KMC reports that both Merida Industry Co. and Shimano (Taiwan) Co. plan to buy KMC shares. This announcement came after the company said that Giant Manufacturing Co. agreed to purchase 1.5 million KMC shares.

At TWD 105 (€ 2.56) per share, the company will raise fresh funds of € 9.2 million through the share offering.

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