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Giant invests in European manufacturing, distribution

Published July 6, 2018

TAICHUNG, Taiwan (BRAIN) — Giant announced production and distribution expansions in Europe this week, signaling its commitment to that market and its eye on reducing costs. Giant currently sells more than 400,000 bikes annually in Europe, including traditional bikes and e-bikes.

Giant is establishing a second factory in Hungary, in the city of Gyöngyös, about 80 kilometers from Budapest. Gyöngyös is in northern Hungary and has access to various road networks such as the M3 motorway, European route E71 and E3. A former mining town with an industrial base, it has recently become an important wine supplier to East and Central Europe.

Giant said the new factory is a long-term investment that it plans to carry out in three phases, with the first phase bringing in an estimated capital spending of around 15 million euros. Total investment in the new factory will be an estimated 48 million euros ($56.3 million).

Construction of the first phase of the new production facility is expected to be completed by the second half of 2019. Initial production capacity will be around 300,000 units and will focus on core European bicycle and e-bike models.

“With the ever-changing global landscape, having a production facility located close to the market, which can be quick to respond to market demands, is an inevitable trend in the modern business world,” said Bonnie Tu, Giant Group’s chairperson.

“Hungary’s ideal geographical location within central Europe and its well-established transportation system will enable Giant to distribute our products to Eastern Europe as well as to mainland Europe. This is one of the key factors in choosing Hungary as the base for our second production facility in Europe.”

The new factory will help reduce Giant’s tax and transportation costs.

Earlier this week, Giant also announced that it’s investing 13.5 million euros ($15.8 million) to open a distribution center in Lelystand, Netherlands, about 50 kilometers from Amsterdam. It will handle distribution, storage and after-sales service to the Pan-European markets and will support the fast-growing demand for e-bikes. The new distribution center is expected to create about 100 jobs over the next three years.

Giant already owns a production facility in the Netherlands, where it has been operating for more than 30 years.

“In 1986, Giant decided to bring our own brand to the global market and this path to internationalization began from the Netherlands,” Tu said. “The Netherlands was chosen as Giant’s European headquarters because of its geographical location, its well-developed transportation network, and its infrastructure. More importantly, the majority of Dutch are multilingual and understand how to do business. These criteria enabled Giant’s expansion to other European markets.”

Giant opened its first European production facility in Lelystad — Giant Europe Manufacturing B.V. — in 1996. Today, Giant operates three other companies in the Netherlands, including Gaiwin B.V., Giant Europe B.V. and Giant Benelux B.V.

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