Taiwan's largest bicycle manufacturer Giant Group will inject $48 million into a new factory in the southern province of Binh Duong.
|The new facility by Giant Group aims to capitalise on rising global demand for bicycles |
The factory is designed with an annual capacity of one million bicycles. It is slated to be put into operation in the second half of 2023. The move is part of the group's plan to capitalise on the long-term growth of the global bicycle market.
As reported by newswire Cycling Industry, the investment comes in tandem with the announcement of a record quarter for the business where revenues reached NT$21.4 billion ($764 million), an 8.5 per cent growth versus the same period in 2020.
Demand for bicycles has been exploding across the world. Therefore, Giant saw the earnings from its bicycle sales rising in all markets during the first half of 2021. Giant's sales growth surpassed 20 per cent in the three main markets of the US, Europe, and China, and Giant Japan and South Korea also had outstanding sales performance.
One of the key driver for Giant's growth is e-bikes. In the first half of 2021, the group saw its e-bike revenue increase by 40 per cent against the same period last year. Giant's e-bike subsidiaries in Germany, France, the Netherlands, and the US company all enjoyed significant growth; together with original equipment manufacturing, e-bikes account for 30 per cent of Giant Group's sales revenue.
The investment of Giant Group also signifies the interest of Taiwanese investors in Vietnam in general and Binh Duong in specific. As of present, Taiwan (China) remains the largest foreign investor in Binh Duong.
In the first six months of 2021, Taiwanese investors tops the foreign investment charts in the locality with five projects worth $657 million. Notably, Polytex Far Eastern (Vietnam) Co., Ltd. was greenlit to inject an additional $610 million into its project at Bau Bang Industrial Zone (IZ) to expand its production of polyester synthetic fibres and spinning products.
Meanwhile, Cheng Loong Binh Duong Paper Co., Ltd. also received an investment certificate to add $100 million to its paper factory at Protrade International Tech Park, bringing the total investment in Binh Duong to $1.1 billion.