POZZOLEONE, Italy (BRAIN)—Selle Royal S.p.A. has signed a binding agreement to purchase a majority interest in Justek, the largest bicycle saddle manufacturer in China.
This joint venture increases Selle Royal’s worldwide market share significantly, and allows the company to offer better access and service to the Asian bicycle market.
The acquisition of Justek is inline with the overall vision and distribution strategy of Selle Royal, who believes that the bicycle is becoming a worldwide lifestyle, and that Asian consumers are a large part of the global bicycle market.
With the acquisition of Justek, Selle Royal now has five saddle manufacturing plants in strategic locations around the world: one in Italy, one in the UK to supply the European markets, one in Brazil to service the South American markets, and now two Justek factories in China, in Shanghai and in Tienjin, to supply the Far Eastern markets, including Asian bicycle assembly factories.
The company has no aims to relocate production from existing plants and this investment will have no effect on any production or personnel at any of the company’s locations.
The primary goal is to promote in the Chinese market and offer Asian customers the same high-quality product differentiation, service and development that Selle Royal has been offering in Europe, Brazil and the United States. This will be achieved by establishing Selle Royal’s decades of proven Italian manufacturing standards to these two Chinese factories.
The agreement was crafted with the assistance of Paolo Corinaldesi, partner of Studio Poggi & Associates, and was signed this week by Massimo Losio (pictured, left), CEO of Selle Royal, and Mr Liu Jiangjun (pictured, right), general manager of Justek Vehicle Co.