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Accell intends to combine its 2 Netherlands' factories

Published January 31, 2024
The decision will cut 100 to 150 jobs.

HEERENVEEN, Netherlands (BRAIN) — Accell Group plans to combine its two manufacturing facilities here and move a portion of production to other European sites, leading to a workforce reduction of 100 to 150 jobs.

According to Accell, the manufacturing change will "better leverage its strong European manufacturing footprint, decrease operational complexity, and improve its competitive position."

Plans are to transfer high-volume models to factories in Hungary and Turkey. The combined Heerenveen factory will focus on R&D and innovation. It will produce specialist brands and models, including Babboe and Carqon, which were moved to Heerenveen last year. Accell plans to further modernize it to allow for more customization and to respond to premium bike market demand.

"We will continue to produce all brands in Heerenveen, but I strongly believe our portfolio of iconic brands will benefit from further integration into our European platform," said Accell CEO Tjeerd Jegen. "Regretfully, the transfer of production cannot be done without certain roles becoming redundant, and we realize this will have a big impact on the people involved."

The proposed changes are subject to Works Council advice and local laws and regulations, while Accell works with the unions to ensure clarity and support for all employees.

In December, Accell said it no longer will manufacture Ghost Bikes in Germany, with the brand's production also being integrated into Accell's European manufacturing network. The company blamed the closure on a challenging market. The factory employed 120 workers.

Jegen took over as Accell CEO and chair of the management board on Nov. 1. In 2022, a consortium headed by investment firm KKR acquired nearly all of Accell Group shares. KKR has investments in dozens of companies around the world in several sectors. It invested in Zwift, the online cycling game, in 2020, and was among the groups that looked at buying Canyon Bicycles in 2020. KKR also is a previous investor in Lyft.

Other Accell Group brands include Haibike, Winora, Batavus, Koga, Lapierre, Raleigh, and Sparta. Its P&A brand is XLC.

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