Giant: Ten Million Bikes in 2010?

(BIKE EUROPE) TAICHUNG, Taiwan – Giant is adding over 50% to its current production capacity with a new and huge Chinese facility that is to start production next March. Bike Europe asked Giant CEO Tony Lo if the biggest bike maker in the world with its new facility will break the ten million mark in 2010?

Giant is investing US$ 12 million in its new Chinese facility that is currently under construction in Tianjin’s Jonghai county. Giant’s fourth Chinese plant is standing on a 225,000 m² site and will have an initial production capacity of one million bikes.

One billion US Dollars

However, Giant Group CEO Tony Lo said last week to Bike Europe in Taiwan that once up and running the new facility will have the capacity to grow to an annual production of 3 million bicycles. This year, Giant is assembling in its 8 plants 5.2 million bicycles while total 2007 sales will end at close to one billion US Dollars.

With the new Chinese facility up and running: “2008 will take us well beyond a production and sales total of 6 million bicycles. Whether we will, with the new facility running at its full capacity of 3 million units, break the ten million mark in 2010, is something I don’t and also don’t mind that much,” said Tony Lo.

Recreation Bikes

“What is more interesting is the fact that we expect the Chinese domestic market for bicycles to see a strong growth in the next five years and especially for recreation bikes. Giant is already the nr.1 brand in China and we want to stay number one and profit from the upswing in demand.”