Ideal Optimistic About Double-digit Revenue Growth This Year

Ideal Bike Corp., a major bicycle manufacturer in Taiwan listed locally, recently claimed that its Chinese bike plant's utilization ratio is expected to grow to 100% over the next three years, from about 70% currently, due to it being the only cycle maker in China free from the anti-dumping duty levied by the European Union (EU).

The Taiwanese bike maker has raised its annual production volume at its Chinese factory to some 600,000 units in 2013, with spare capacity to further expand to about 800,000 units, also being very confident to see double-digit revenue growth this year despite lukewarm climate in the cycle industry.

EU has been levying high sanction duties on  bicycles exported from China for many years, but Ideal evaded such duty in mid-term inspection last year, compared to counterparts in China saddled with 48.5% anti-dumping duty until 2016.

Being duty exempt, Ideal said, has enabled  product prices at retailers to decline about 10% from early this year, triggering stronger consumer responses. A group of new customers are discussing with Ideal about new orders, the company said, without definitive outcome.

Taking after major counterparts Giant Manufacturing Co., Ltd. and Merida Industry Co., Ltd., Ideal has begun more aggressively tapping the Chinese market. This year, Ideal plans to elevate the number of retailers in China to 220, also targeting 50% shipment growth in China's domestic market.

Ideal's president Andy Lee pointed out his company will continue focusing on custom-development strategy, as well as gradual sales  development in China, hence seeing no reason for operations to decline this year.