Giant Manufacturing Spends US$15 M. to Build Factory in Kunshan

Taipei, Dec. 31, 2009 (CENS)--Taiwan-based Giant Manufacturing Co., Ltd., a globally leading supplier of own-branded bicycles, has decided to invest US$15 million to build a new factory in Kunshan City, Suzhou Province, China, according to company sources.

The firm noted that the new plant, to spread over 500 acres, will specialize in production of frames and front forks and bicycle assembly. Plant construction will begin in the first half of 2010 and will help to enhance the firm's overall production capacity.

In addition, Giant has also decided to expand output at existing factories in China to meet continuously growing demand in the local consumer market. The firm will first set up a new production line in its largest plant in Tianjin City in the first half of 2010, which will cost the firm some RMB20 million and raise by 300,000 units the plant's existing output of 1 million bicycles.

With six factories in China, the firm has achieved a maximum annual output of 4.2 million bicycles in the country alone this year and plan to raise the figure to 5 million units in 2010. Noteworthy is that the firm can also turn out 400,000 electric bicycles in China a year.

The firm scored combined revenue of NT$2.89 billion (US$90.31 million at US$1: NT$32) in November of 2009, the highest in the year, and raked in NT$35.832 billion (US$1.12 billion) in aggregate revenue for the first eleven months of the year, down 5.89% from a year earlier.