Top two Taiwanese bicycle makers – Giant Manufacturing and Merida Industry – have reportedly been boosting output at their factories across the Taiwan Straits.
According to a report in the Taiwan Economic News, this is in order to ‘cash in on the recovering demand for high-end bicycles worldwide.’
Giant has recently spent US$36 million building its ninth bicycle factory in China, in Kunshan City. This is scheduled to be operational in the third quarter of 2011 and should produce around 1 million to 1.5 million bicycles two years later.
One focus of the Kunshan plant will be electric bicycle manufacturing. Although, the new Kunshan site will also produce bicycle frames and carbon fibre.
A production line for high-end bikes should become operational the second quarter of 2011, with annual output of around 200,000 units in the next three years.
Giant currently produces around 100,000 units of higher-end bikes in Taiwan each year.
Meanwhile, since August 2010, Merida has invested NT$250 million (US$8 million) in expanding its production capacity. At its factories in Taiwan and China, Merida has procured new processing and production equipment and has made improvements to existing production lines.
The latest expansion from Merida is scheduled to be completed in April 2011.
Merida just reported its sales revenue of NT$1.285 billion for November 2010, up 26.27% year on year. This boosted total revenue for the 11 months of 2010 to NT$11.074 billion, up 8.94% year on year.