Giant Manufacturing Co., the world’s largest bicycle maker by revenue, said Monday it plans to invest $36 million in a new bicycle and electric car plant in eastern China, the French news service AGP reported.
Giant said it will start building the plant, located in Kunshan city of Jiangsu province, by July. The plant will be able to build 1.5 million bicycles a year when it becomes operational some time next year.
With its new investment, Giant hopes to profit from China’s growing emphasis on reducing consumption of fossil fuels. The new plan will also produce bicycle frames and carbon fiber.
Based in Taiwan, Giant currently operates five factories in China, producing bicycles, electric cars and aluminum alloy.
Giant reported earnings of $54 million on net sales of nearly $330 millioin in the year ended Sept. 30, 2009.
