Advanced Sports International will shift production of bikes destined for the EU to Ideal's China and Poland factories to achieve more competitive pricing, reduce logistics and shorten lead times. Previously, ASI bikes sold in the EU were manufactured by Ideal's Taiwan factory. But Ideal recently became one of two manufacturers to become exempt from the 48.5 percent dumping duty on Chinese imports into the EU. The other factory is Oyama.
ASI is the parent company of Fuji, SE, Breezer, Kestrel and Oval Concepts.
"We are in a unique position among bicycle manufacturers to be able to ship directly from China into the EU without incurring any excess duty, and we are passing these savings onto our customers," said Andy Lee, president of Ideal Bike Corporation.
Ideal, Taiwan's third largest bike manufacturer, opened a factory in Shenzou, China, in 2006 that features a painting facility, aluminum and steel frame and fork manufacturing. It also opened a factory in Poland in 1999.
"We expect this production shift to help us double our European business over the next three years," said Pat Cunnane, ASI president and CEO. "Since we began our strategic partnership in 2001 and Ideal became a minority shareholder in ASI in 2004, Ideal has been a critical part of our growth strategy success. They have helped us expand from 35,000 units in 2001 to more than 300,000 units in 2012 while more than doubling our average selling price."
In addition to moving production from Taiwan to China, ASI is shifting production of some models to Ideal Europe in Kutno, Poland, approximately 150 kilometers west of Warsaw. The move will lower logistics costs and improve delivery times to international distributors and multimarket retailers such as Hervis in Austria and Evans Cycles in the U.K., said Armin van Hoogstraten, general manager of Advanced Sports-Europe (ASE).
Advanced Sports has seen its European sales grow 60 percent since it started direct distribution there. The company recently completed an expansion of its European headquarters in Mutlangen, Germany, in anticipation of the growth it expects to see over the next three years from the shift in manufacturing.
