The China Economic News Service is reporting that all three of Taiwans largest bicycle manufacturers are planning on expanding their production capacity in mainland China in 2005. Giant, Merida, and Ideal Bike Corp. all recorded record years for sales and climbing ASPs driven by higher-end production.
Giants Kunshan plant shipped 2.8 million bikes in 2004 with increases expected in 2005. The companys new Chengdu plant expects to produce 250,000 bikes in 2005 and its Shanghai plant turned out 2.06 million bikes last year with increases expected. Giant is also dedicating larger portions of production to electric bicycle manufacturing.
Meridas Shenzhen, China facility has an annual capacity of 500,000 complete bikes and 300,000 bike frames. Ideals new plant in Dongguan, China was completed this month and is expected to double Ideals capacity.
This growth in manufacturing capacity is driven by sales growth from the factories own brands and a growing number of outside brands choosing China as their manufacturing hub. For example, the venerable Italian brand, Colnago announced that it would be competing more heavily in the mid-market by starting production in China. There have also been reports of executives from Pacific Cycle and Trek touring different facilities in mainland China.
