Giant Mulls Setting Up Headquarters in Central Taiwan Science Park

Taipei, Aug. 14, 2012 (CENS)--Giant Manufacturing Co., Ltd., the world's leading bicycle manufacturer, is assessing the feasibility of setting up its new global operation and R&D headquarters in the Houli Base of Central Taiwan Science Park (CTSP), as well as further expanding its factory in Tajia District of Taichung City.

The bicycle maker is also accelerating capacity expansion in China. After completing the first-stage facility in Kunshan, Jiangsu Province, Giant is planning to carry out the second-stage expansion plan at the campus. The firm is also expanding its factory in Tianjin, planning to upgrade the factory's annual production capacity from 1.2 million units to 1.5 million units in 2013, when the expansion is completed. An expansion plan for Giant's facility in Chengdu, Sichuang Province, is also on the drawing board.

Giant pointed out that it plans to pour total investment of US$35 million into a five-year, three-stage factory construction plan in Kunshan, aiming to achieve an annual capacity of three million assembled bikes after completion. The first-stage construction has been completed in July 2011, with annual capacity to be further boosted to one million units this year from 300,000 units. The second-stage plan also aims to add additional capacity of one million units, Giant said.

CTSP Administration has been aggressively persuading heavy-weight enterprises in Taiwan to move into the science park. Industry insiders said that King Liu, chairman of Giant, would soon call on the CTSP Administration for detailed discussions on the issue.

Industry insiders said that CTSP plans to provide 1 to 1.5 hectares of land (1 hectare equals 10,000 square meters, or 2.471 acres) to Giant for setting up the headquarters. Giant said earlier that if it moves the headquarters to Taichung, it will enable the company to more easily recruit more talents.

Currently, Giant's Tajia facility produces about 1.1 million high-end bicycles with average selling price (ASP) of about US$550 per year, and the production lines often should work overtime during high seasons. And if the company can set up a new headquarters in the CTSP, Giant would be able to utilize the available space to further expand its production capacity at the factory.

Giant's global bicycle shipments reached 5.77 million units in 2011, generating revenue of NT$47.3 billion (US$1.58 billion). The company scored consolidated revenue of NT$25.9 billion (US$863.3 million) in the first half of the year, up 13.8% YoY.

Some institutional investors estimated that in the third quarter, the traditional high season for the bicycle industry, Giant's shipments and revenue are expected to hit record highs again. This year, they forecast, Giant could challenge shipments of 6.3 million units and revenue of more than NT$50 billion (US$1.67 billion).