Bike Europe, 2015, edition 1/2

Volume 19, nr. 1-2 January/February 2015

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Trade Journal for the Bicycle, E-Bike & Scooter Market

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Low Carbon Technology Gets EU Funding POTENTIAL FOR (E)-CYCLING PROJECTS

SHOW PREVIEW: TAIPEI CYCLE

P. 27

President René Takens on New EU Industry Association CONEBI

P. 24

MARKET REPORT ASIA

P. 8

INTERVIEW

P. 21

Sales and imports growing again after years of decline, with indication of s-pedelecs as future winner

European Bike Market Ready for Revival AMSTERDAM, the Netherlands – For the first time in years the EU bike market showed positive results in 2014. Finally the trend break is there. Eurostat’s latest statistics confirms this and indicate that speed pedelecs are gaining ground rapidly.

L

ast October, viewing the Eurostat bike import statistics for the first half of 2014, this trade journal reported that all signals are green. In particular because sales in some of Europe’s main markets picked up again.

Volume

19, nr.

y/Febr 1-2 Januar

gear the Bike Totaal shops saw their turnover grow by a big 9.6% compared to 2013.

This big growth was not only due to favourable weather conditions and an improving economy, but also because of a last minute rush for new bicycles, as many Dutch still wanted to take advantage of a tax incentive ending in 2014. Furthermore, a survey among a high number of Belgian bike dealers indicated that sales in this EU member state shot up by 8% and that in particular e-bikes were bestsellers. The Eurostat 2014 bike import figures confirm that the market in Europe is

Limited Production of Internal Hub Gears Causing Supply Chain Troubles

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uary 2015

Like in Germany. At Eurobike, a 4% increase in bicycle sales was reported, totaling 2.8 million units in the first half year. Later a 6% growth in IBD trade was registered, while fine autumn weather in October and November, “has been very good for the bicycle business,” according to the German retailers’ organization VDZ. In the Netherlands, retail chain Bike Totaal, part of the Dynamo Retail Group, reported an 11.1% increase in turnover generated by the sales of new bikes in 2014 compared with 2013. Including parts, accessories and cycling

recovering. The years of decline resulting in an over 20% import drop in the period 2009 – 2013, have come to an end. In the first ten months of 2014 total bicycle imports (including e-bikes and s-pedelecs) into the European Union increased by 1.6%, to close to 7 million units. When comparing the relatively small import increase to the higher numbers of the reported sales growth in the named countries the conclusion is that inventory levels must have dropped. And with that the EU bike market is ready for revival.

More on page 2

E-Bike Market to Exceed 40 Million Units by 2023

LETTER

/NEWS

U.COM

BIKE-E

WWW.

Trade Journ

Low Carbon Technology Gets EU Funding POTENTIAL

P. 24

LING

FOR (E)-CYC

AMSTERDAM, The Netherlands – Long before the start of the sales season, bike makers in European countries where city and e-bikes fitted with internal hub gears (IHG) are popular, such as the Netherlands, Germany, Belgium, and Nordic countries, are confronted with extreme lead times.

President René Takens on New EU Industry Association CONEBI

et ter Mark

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PROJECTS

P. 21

INTERVIEW

P. 8

W: TAIPEI

CYCLE

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P. 27

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of on topand Stay news Bike the up forfree sign Europe’s newsletter email

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2015

19,

nr. 1-2

January/February

Volume

rket

MARKET

P. 27

TAIPEI

SHOW

CYCLE

PREVIEW:

the – For market Finally the Netherlands EU bike latthe in 2014. in yearsresults Eurostat’s AMSTERDAM, indicate time first positive is there.this and showed breakconfirms gai are trend the statistics bi est speed pedelecs Eurostat that the of 2 half si viewing first all the that for ast October, statistics reportedecause port journal trade In par green. of Europe’s

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Meet us at: Booth: P0009 4th floor

TAIPEI CYCLE

www.bike-eu.com

I

n February the delivery schedules of IHG bikes ran up to July. The reason for these delivery problems is the result of several market and business circumstances. Thanks to summer weather conditions in Europe lasting until the end of October, autumn sales were

relative high. The Dutch market was also faced with a rush on bikes in December as the government decided to end a tax incentive scheme for consumers to buy a bike for commuting. On the industry side both Shimano and SRAM had their own explanation for the rising lead times. SRAM announced it would stop the production of G8 and G9 IHG. “This is not related to any technical issue but the result of the market situation,” announced SRAM. When asked whether this decision created additional demand for Shimano, the company stated, “The main cause for the raised lead time is the unexpected growth of bike sales with the Nexus-7 hubs.”

Continued on page 4

B

OULDER, USA – The US market is to follow swiftly the mature e-bike markets in Europe, where strong commuter cultures utilize e-bicycles for everyday use. As a result the worldwide sales of e-bikes are expected to grow from 31.7 million in 2014 to 40.3 million in 2023.

This is reported by Navigant Research in its study analyzing the global market for electric bicycles. Along with technology advances, emerging trends in cities help the market accelerate its growth.

2

January/February 2015 BIKE europe

BUSINESS Countries with duty free import status show big growth as well as import of high speed e-bikes

Import Growing But Reshuffled Due to GSP Continued from cover page

Eurostat’s bicycle, e-bike and high speed e-bikes import statistics for the first ten months of 2014 compared to 2013, show once again that bike production is on roller skates. It easily rolls from one to another country; in particular to countries that obtained a GSP+ status, meaning they can export bicycles import duty free to Europe.

Jack Oortwijn

N

ext to the countries that were granted the Generalized System of Preferences Plus (GSP+) status in 2014 – the Philippines and Pakistan – another trade regulating measure by the European Union stirred up the bike market. And that is that quota have been implemented for the duty free bike import from Cambodia. This was caused by changes in the local content regulations that ruled out the use of components from Shimano Singapore and Malaysia, which contribute significantly to the 30% local content. However, in order to allow the Cambodian producers to prepare themselves for this the factories can include parts from Malaysia for a 3 year period with a quota.

For 2014 the quota stood at 400,000 bikes; for 2015 at 300,000 and for 2016 at 150,000 bikes.

This has hit the Cambodian export to Europe hard as it dropped 16% to just over 1 million units.

Bangladesh, Philippines and Pakistan Bangladesh (also a GSP+ country) saw its export to Europe grow by a big 21% to some 530,000 units. In this issue almost all Bangladesh based bike producers indicate that they are expanding their production capacities. Duty free export to Europe is also fast growing from the Philippines; in the first ten months of the year with close to 9% to 700.000 units. What also stands out when having a close look at the Eurostat bicycle import statistics is that suddenly Pakistan is appearing in the top ten ranking of EU bike supplying countries. The country exported 181,000 bikes to the EU in the first ten months of 2014. The fact that imports from Philippines are growing hard, that Pakistan is now also appearing as a major supplier and that the import from Cambodia stayed at a high level didn’t go unnoticed, in particular by the European Bicycle Manufacturers Association (EBMA). On behalf of fifteen European producers the association

requested the European Commission to start an investigation of illegal practices in the named countries. And last September the Commission announced to have started an investigation concerning the possible circumvention of antidumping measures on imports of bicycles originating in China by means of transshipments via, and assembly operations in, Cambodia, the Philippines and Pakistan. This investigation must be concluded within nine months, so June 2015. In case the outcome of the investigation is negative for one or for all of the named countries again the top ten of EU bike suppliers will see a big reshuffle.

E-Bikes & High Speed E-Bikes Since 2012 it is possible to track the import of e-bikes and high speed e-bikes (also named spedelecs) into the EU countries within the Eurostat database. In particular the e-bike import can be tracked pretty accurately because of its CN (import) Code that stipulates, “Cycles with an auxiliary electric motor with a continuous rated power not exceeding 250 watts.”

Furthermore, exporters and importers will meticulously use the specific import Code not only in order to avoid the 48.5% anti-dumping duty for bikes imported from China (the vast majority of the imported e-bikes come from China), but also due to the 14% regular import duty for bicycles. Electric bikes have 6% import duty.

The question is whether the high speed e-bike import can be tracked that accurately as e-bikes. In particular as the CN Code stipulates this category as, “Other cycles with an auxiliary electric motor.” Are e-scooters included here?

Viewing the import of the two categories in 2014 compared to 2013 (see the tables on this page), it becomes evident that the import of regular 250 watt e-bikes stayed flat. Total import stood at 370,000 units (378.000 in 2013) and that the vast majority of that import came from China (300,000 units). High speed e-bikes import however increased by 17% to 176,000 units.

Import of high speed e-bikes increased by 17% during the first ten months of 2014.

Top Ten EU Bike Suppliers 2014 vs. 2013 (in units) Country

Top Ten EU Bike Suppliers average value (per imported unit by country)

2014 Jan-Oct

2013 Jan-Oct (rank in 2013)

1. Taiwan

1.558.735

1.625.415 (1.)

-4,10%

2. Cambodia

1.020.671

1.211.654 (2.)

-15,76%

3. Philippines

702.618

645.992 (3.)

4. Bangladesh

526.090

5. Thailand

519.433

6. China

376.488

374.047 (6.)

0,65%

7. Sri Lanka

334.610

341.269 (7.)

+1,95%

8. Tunisia

329.727

265.722 (8.)

9. Turkey

255.311

10. Pakistan

180.991 6.390.958

TOTAL units*

Photo Bike Europe

+/- 2014 vs. 2013

2014 Jan-Oct

2013 Jan-Oct

1. Taiwan

€ 260,24

€ 260,85

-0,23%

2. Cambodia

€ 192,35

€ 174,97

+9,93%

+8,76%

3. Philippines

€ 42,46

€ 44,07

-3,64%

435.530 (5.)

+20,79%

4. Bangladesh

€ 83,22

€ 89,07

-6,57%

503.303 (4.)

+3,20%

5. Thailand

€ 78,35

€ 75,67

+3,54%

6. China

€ 40,56

€ 27,72

+46,28%

7. Sri Lanka

€ 47,33

€ 46,21

+2,41%

+24,08%

8. Tunisia

€ 64,86

€ 65,06

-0,29%

210.542 (10.)

+21,26%

9. Turkey

€ 118,24

€ 115,50

+2,37%

1 (-)

-

€ 43,31

-

-

6.301.551

+1,42%

Source: Eurostat (* including other countries)

Country

10. Pakistan

+/- 2014 vs. 2013

Source: Eurostat

E-Bikes & High Speed E-Bikes Import (in units – value) E-Bikes in units Value

2014 Jan-Oct

2013 Jan-Oct

2014 vs. 2013

369.511

378.312

-2,33%

€ 159.336.470

€ 144.250.656

+10,46%

Average price

€ 431,21

€ 381,30

+13,09%

High Speed e-bikes in Units

176.241

151.105

+16,63%

€ 82.452.840

€ 71.278.314

+15,68%

€ 467,84

€ 471,71

-0,82%

Value Average price Source: Eurostat

BIKE europe January/February 2015

3

BUSINESS Jack Oortwijn, Editor in Chief

Pricing

China’s e-bike industry enters a new era as its production drops; a big contrast to the annual average 30% increase.

Also major motorcycle manufacturers are entering the e-bike industry at full speed as demand from the motorcycle market shrinks. China’s motorcycle tycoons like Haojue, Photo Bike Europe Zongshen, and Dayun are all investing in e-bikes. This strong competition forces e-bike makers to upgrade. More on page 17.

ISO 4210:2014 Standard for Bicycles Published GENEVA, Switzerland – The International Organization for Standardization ISO published the new standard for bicycles.

It has been developed in response to demand throughout the world and to ensure that bicycles manufactured in compliance with this International Standard will be as safe as possible.

T

he standards have been prepared by Technical Committee ISO/TC 149 “Cycles” in collaboration with Technical Committee CEN/TC 333 “Cycles”. This European Standard will get the status of a national standard, either by publication of an identical text or by endorsement and conflicting national

standards will be withdrawn. The ISO 4210 specifies safety and performance requirements for the design, assembly, and testing of bicycles and sub-assemblies. ISO 4210:2014 Cycles – Safety requirements consists of: Part 1: Terms and definitions Part 2: Requirements for city and trekking, young adult, mountain and racing bicycles Part 3: Common test methods Part 4: Braking test methods Part 5: Steering test methods Part 6: Frame and fork test methods Part 7: Wheels and rim test methods Part 8: Pedals and drive system test methods Part 9: Saddles and seat-post test methods The new standard includes an all new category

called ‘young adult bicycles’ with a maximum saddle height of 635 mm or more and less than 750 mm. The ISO 4210 does not apply to specialized types of bicycles, including recumbent bicycles, tandems and BMX bicycles. The following countries are bound to implement the ISO 4210:2014: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Former Yugoslav Republic of Macedonia, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the UK. Download the new ISO standard via http://www.iso.org/iso/home/store/

There are some major developments taking place right now. The fortunate one is that the market is picking up again. Some of EU’s main markets show signs of recovering sales (see the report on the cover page). What’s also good is that production is again in full swing. Moreover, the 2015 e-bike market holds big promises as it gets new impulses with speed e-bikes (s-pedelecs) and e-MTB’s.

But there are also less fortunate developments. Like the fact that the euro exchange rate dropped significantly since last August; by no less than 17 percent against the US dollar. It already resulted in bike makers and suppliers raising their prices at the start of the new year. But more is to come and not only for complete bicycles and e-bikes, but also for P&A as the procurement in the Far East of parts gets considerably more expensive. And viewing the current rate of the euro against the dollar which stands almost stationary at USD 1.13, it seems inevitable that key price points in the various EU markets are to be breached.

Another major development taking place is that lead times are once again on the rise; in particular as Shimano is faced with difficulties to keep up with demand for various parts. Taking all this into account at the start of a new sales season these dark clouds have one silver lining; price cutting and stiff price competition will be less likely this year.

Jackoortwijn@vakmedianet.nl

4

January/February 2015 BIKE europe

FINANCIAL

Internal Hub Gear Market Shaken

by Production Changes Continued from cover page

The decision by SRAM to stop production of the G8 and G9 internal hub gear, in conjunction with the market situation, is causing some hiccups in the supply chain for European bike makers.

L

ooking at the market situation, it becomes clear there are valid reasons for fitting city and e-bikes with Nexus-7 hubs, in particular when they are produced in Europe. Bicycle manufacturers can thus purchase them with euros. SRAM gear hubs were manufactured in Taiwan and had to be sourced there, with euros that currently have a low exchange rate against other currencies. As well as price issues, lead times with SRAM’s made-in-Taiwan hubs came into play too.

Comments from bicycle manufacturers make it clear that SRAM communicated the termination of the G8 and G9 internal gear hubs production earlier to them. Bicycle manufacturers have responded by ordering even more Nexus-7 hubs. According to Shimano they already faced a growing demand for their Nexus-7 hubs in autumn 2014.

“In response we invested in our Czech factory to optimize and increase our production capacity where possible. Currently we are at the maximum level. We expect lead times will remain the same for the time being,” Shimano stated. “Many OEM’s are also positive for 2015 and started producing their bikes earlier than

Giant Reports Record Sales and Recovery of Business in Europe G8 and G9 IHG production was started only two years ago

by SRAM. Photo SRAM

before. Altogether this resulted in longer lead times from our side. The Nexus-8 hub is an alternative for the Nexus-7 hub. Some of our customers already switched to Nexus-8. Due to extra demand in Nexus-8 hubs also here we see an increase in lead times. We would like to emphasise once more that we are doing everything within our power to keep our lead times as short as possible.”

SRAM remains committed to IHG’s SRAM underlines that the decision to stop the production of its G8 and G9 internal hub gears, which was started only two years ago, doesn’t mean that the components manufacturer will pull out of the internal hub gear market completely. “We remain committed to the urban category and internal gear hub components,” SRAM stated. “The production of the SRAM i-3, Automatix and Dual Drive products will continue.” SRAM will also continue to develop internal gear hubs, as the company reported advanced component development associated with e-bike applications. This is taking place with the SRAM DD3 Pulse.

TAICHUNG, Taiwan – For 2014 Giant reports a recovery of its own-brand business in Europe. Next to that the marketing of Taiwan’s biggest bicycle maker also proved to be effective in China, resulting in stronger-than-expected sales for last year.

I

n the last quarter of 2014 Giant’s year-onyear consolidated sales rose by 19.4 percent to TWD 14.5 billion (400 million euro). The company’s sales growth in both Europe

and China pushed its consolidated full-year sales figure by 10.86 percent to TWD 60.22 billion (1.65 billion euro). This is the highest turnover in the company’s history. According to Taiwanese Capital Securities, Giant’s net profit for 2014 will increase by 15.12 percent to TWD 4.58 billion (130 million). Giant’s growth figures are driven by export markets, just like for most Taiwanese companies. According to TAITRA, Taiwan’s exports for 2014 are expected to grow 3.58 percent.

Korean Youngone Acquires Scott Corp SA SEOUL, South Korea – Sports equipment manufacturer Youngone Corporation increased its shareholdership in Scott Corporation from 20% to 50.01%. Youngone Corporation paid a transaction price of KRW 108,530,000,000 (86.8 million euro) for the 3,751,250 shares of Scott.

I

n 2013 Youngone already obtained a 20-percent stake in Scott investing USD 40 million.

This investment was intended to strengthen the joint business in bicycles and ski’s as well as sporting goods items in the markets of China, Japan, and Korea. Until now Youngone had been an exclusive vendor of Scott bicycles

in Korea, Japan, and China through a 100-percent subsidiary called Scott North Asia.

Youngone’s new investment in Scott Corp. originates in the Korean company’s strategy to grow its overseas business. In 2014 Youngone already took an 80-percent stake in a US outdoor apparel maker. According to Youngone the main reason to invest in overseas companies is based on their judgment that the domestic market has reached its saturation point and it must try to find new markets. World famous brand like Nike, Eddie Bauer, LL Beans, The North Face, Intersports, Polo Ralph Lauren, and Puma source their products from Youngone.

BIKE europe January/February 2015

5

FINANCIAL 2014: ‘Difficult year to lose money on stock market,’ but:

Fragility Remains MUNICH, Germany – According to the German newspaper Süddeutsche Zeitung it has been difficult to lose money on the stock market in 2014.

The newspaper refers to a Bloomberg survey saying that the share ratings of three quarters of all listed companies increased in value worldwide last year. How could this be?

Bike Industry Stock Chart Company Name

Accell Group NV, Amsterdam Araya Industrial, Osaka Asahi Co., Ltd., Osaka

Jo Beckendorff

Atlas Cycles (Haryana) Ltd., Bombay

+ 0.4

EUR 330.90 mn

EUR 12.30

EUR 15.02

JPY 184

- 1.1

JPY 10.17 bn

JPY 136

JPY 215

JPY 1,155

- 0.8

JPY 28.85 bn

JPY 1,060

JPY 1,525 INR 274.00

INR 766.48 mn

INR 235.70

US$ 887.81 mn

US$ 15.35

US$ 19.12

Dorel Industries Inc., New York***

US$ 28.00

- 17.7

CAN$ 1.31 bn

US$ 28.00

US$ 38.59

Falcon Power Company Ltd., Taipei

TWD 19.80

+ 41.4

TWD 284.41mn

TWD 9.00

TWD 19.85

Fox Factory Holding Corp., New York

US$ 15.19

NEW

US$ 597.74 mn

US$ 13.35

US$ 19.05

Giant Mfg. Co. Ltd., Taipei

TWD 275.00

+ 1.1

TWD 101.27 bn

TWD 185.50

TWD 290.00

Halfords Group PLC, London

GBP 444.00

- 7.1

GBP 918.05 mn

GBP 471.10

GBP 515.00

CNY 8.60

- 12.3

CNY 3.15 bn

CNY 4.06

CNY 11.76

Ideal Bike Corporation, Taipei

TWD 15.40

+ 19.4

TWD 2.07 bn

TWD 12.30

TWD 22.93

Jinshan Co. Ltd., Shanghai**

US$ 0.68

- 4.2

CNY 1.50 bn

US$ 0.56

US$ 0.74

TWD 130.00

NEW

TWD 13.43 bn

TWD 105.00

TWD 155.00

Lee Chi Ent. Co. Ltd., Taipei

TWD 15.05

+ 13.2

TWD 3.13 mn

TWD 12.85

TWD 19.30

Merida Ind. Co. Ltd., Taipei

TWD 218.00

+ 2.8

TWD 62.94 bn

TWD 170.48

TWD 234.00

Next to the still ongoing crisis in Ukraine two other barriers popped up during the New Year period. On 15 January the Swiss government unexpectedly announced its decision to end the Swiss franc ceiling introduced on 18 December 2014 in an effort to protect the economy from the effects of rapid franc appreciation.

This decision was made after the continued decline of the euro. As a result the Swiss franc skyrocketed (compared to the euro) immediately by 30%. Moreover by the end of January struggling EU member state Greece voted in a general election for a government change. The left-wing Syriza party pledged to renegotiate the terms of Greece’s financial bailout putting even more pressure on the euro.

The named developments resulted share ratings that weren’t looking that good in December to January. Ten of the 26 listed share values withstood the downturn. It doesn’t come as a surprise that most of the shares that increased in value are not European. The best performing shares come from Taiwan as well as other Asian countries like Japanese Morita, Indian Tube Investment of India (TII) and Chinese Zhonglu. Accell Group was the only European listed company that booked a positive result.

With 42.4% the largest share value increase in

EUR 13.50

- 6.6

The Brazilian bicycle producer Pro Metalurgia was deleted from the list as this company has been liquidated. End of 2014 listed Dorel Industries acquired the remaining 30% of the shares in the Companhia Dorel Brasil Produtos Infantis (Dorel Juvenile Brazil). New in the Bike Industry Stock Chart are US suspension maker Fox Factory, Taiwanese chain giant KMC (Kuei Meng) International and South Korean bicycle producer Samchuly Bicycle. Last but not least, and after a successful restructuring, British Tandem Group, which markets brands like Claud Butler and Dawes, is back in the chart.

Asian shares

52-weekhigh

+/- 0.0

What’s next?

The top three climbers in the stock chart last year were Indian Munjal and Tube Investments of India (TII) as well as Chinese Zhonglu (former Shanghai Forever). These three reached impressive growth rates of over 200 percent.

With a 73.3% share value increase bicycle component market leader Shimano reached 4th place in the growth ranking followed by Taiwanese HL Corporation (plus 40.7%). The most significant loser was of course the German Mitteldeutsche Fahrradwerke AG (MIFA).

After last year’s insolvency its share value downhilled to a 52-week low of 0.13 euro. To give you an idea about this share value development: the company’s 52 week high stood at

52-weeklow

US$ 16.20

Chart member changes

Winners and losers in 2014

Market Capitalization 01-01-2012*

INR 271.75

KMC (Kuei Meng) Int’l Inc., Taipei

B

Compared to 30-11-2014 (in %)

Compass Diversified Holdings, New York

6.88 euro. In other words: MIFA shares crashed by a big 95%.

Other listings that had double-digit share value drops in 2014 were the Japanese bicycle chain store retailer Asahi (minus 24.3%) as well as its fellow country man and wholesaler Tsunoda (minus 16.4%), US financial holding company Codi (minus 14.4%), Taiwanese bicycle producer Ideal (minus 13.1%) and Indian Atlas Cycle (minus 10%). All other listed companies saw single digit drops in 2014.

efore discussing 2015 share value developments, we will first look back to the market in 2014. Last year 50% of the share ratings of the all in all 26 listed companies in Bike Europe’s Bike Industry Stock Chart increased in value. Nine of the listed companies ended the year with a decrease in value. The remaining four listed companies are added to the stock chart.

Rate 31-01-15

HL Corporation, Shenzhen****

Mifa AG, Frankfurt

EUR 0.24

- 56.1

EUR 2.27 mn

EUR 0.13

EUR 6.90

Morita Holdings Corp., Tokyo

JPY 1,303

+ 14.9

JPY 52.21 bn

JPY 786

JPY 1,316

Munjal Auto Ltd., Bombay Samchuly Bicycle Co. Ltd., Seoul Shimano Inc., Tokyo Sun Race Sturmey-Archer Inc., Taipei Tandem Group plc, London Tsunoda Co. Ltd., Tokyo Tube Investments of India Ltd., Bombay Zhonglu Company Ltd., Shanghai **

INR 197.95

- 6.8

INR 5.53 bn

INR 38.50

INR 133.50

KRW 20,000

NEW

KRW 236.76 bn

KRW 19,700

KRW 20,400

JPY 15,660

- 2.7

JPY 1.46 tn

JPY 7,800

JPY 16,960

TWD 14.25

+ 21.3

TWD 667.50 mn

TWD 10.00

TWD 16.50

GBP 106.00

NEW

GBP 4.90 mn

GBP 74.00

GBP 131.20

JPY 357

- 3.5

JPY 1.70 bn

JPY 317

JPY 405

INR 367.35

+ 11.3

INR 64.80 bn

INR 168.00

INR 389.00

US$ 1.88

+ 42.4

CNY 3.49 bn

US$ 0.76

US$ 1.99

*Source: Corporate Information ** Chinese Jinshan Development & Construction (former Phoenix) and Zhonglu (former Shanghai-Forever) rates in US$ , company value in CNY; *** Canadian Dorel rates in US$ , company value in CAN$ **** Taiwanese HL Corp. is listed at the Shenzhen stock market in China, company shares andvalue in CNY) Composed and Copyright by: Jo Beckendorff

December – January was booked by Shanghai Forever’s parent company Zhonglu followed by a 41.4% share value growth by Taiwanese parts maker Falcon Power. Atlas Cycle shares remained on exact the same value as in the in December published chart – and four chart members are new.

to impact Dorel in 2015.” Business fundamentals still remain strong but the rating of the US dollar versus, “The majority of the company’s other operating currencies is expected to have a significant negative effect on Dorel’s earnings through 2015.”

Outlook Dorel share drop Next to MIFA the biggest drop in share value was reported by Canadian Dorel Industries (minus 17.7%). Dorel shares dropped after an official company announcement on 29 January that, “The strength of the US dollar is expected

The stock market seems to ignore the ongoing economic crises and growing global political instability. The forecasts for 2015 range from “stock market bubble and crash” to “bullish market with continuing highs”. In other words: fragility remains.

6

January/February 2015 BIKE europe

BUSINESS

SRAM Launches ‘Essentials Program’ Globally SCHWEINFURT, Germany – To provide higher quality services to its distribution and retailing network, SRAM has built a new program around a mix of road and MTB parts products and dedicated brand displays. The “Essentials Program” is available globally and will be in shops late February 2015.

A

ccording to SRAM the products in this program have a high turnaround. “We have selected the fastest moving items that every shop should stock, and placed

it into a single orderable solution, with great margins for both the retailer and the distributor,” said Jason West, Vice President Retail Sales & After Market.

The program includes: cables and housing; chains and cassettes; chainrings and bottom brackets and disc brake support.

The AM packed items for the back/slat walls and back stock, hooks, come with price tags and SRAM sign, refill cards for each hook with part information as well as a planogram and instructions. The program has been designed to be simple, clean, and easy to manage.

BMZ To Triple Production Capacity Li-Ion Batteries

The all-in-one retail system for SRAM’s popular consumables includes the four main Road and MTB parts categories.

Photo SRAM

Bosch Replacement Program Starts

KARLSTEIN, Germany – Europe’s leading e-bike battery supplier is again reaching its limits. In order to be able to meet the still rapidly growing demand for lithiumion batteries BMZ GmbH is already this year expanding as part of an investment plan that runs up to 2020.

J

ust four years after the current production facilities were built BMZ is entering into a 45 million euro investment schedule for the extension of their R&D and manufacturing capacities at the company’s HQ in Germany. The first two of a total of six new production, laboratory and office buildings are to go into operation in 2015; the official groundbreaking ceremony was on February 2nd.

80 million lithium-ion batteries The investment program will quadruple the area available in Germany in the coming years from the current 12,000 m2 to 55,000 m2. It will enable the company to produce up to 80 million lithium-ion batteries of various sizes with a total storage capacity of around 5 GWh annually.

Currently BMZ, founded in 1994, is the largest independent European lithium-ion battery system developer and manufacturer with more than 1,200 employees worldwide. In 2014, the company reached a turnover of some 300 million euro. The 500 million threshold is expected to be broken in 2020 at the latest.

Manufacturing activities in Germany In order to create the necessary production capacities the company, which also has its own

The replacement program involves first generation Bosch Classic+ Line systems.

Photo Bosch BMZ general manager Sven Bauer, ‘We will continue to expand manufacturing activities in Germany.’

Photo Jo Beckendorff

assembly facilities in China, Poland and the USA, wants to continue to invest heavily above all in the industrial base in Germany in the coming years.

“Apart from the most modern equipment and a well-functioning infrastructure, what a hightech company like BMZ needs above all, is highly motivated and well-qualified staff. As a manufacturer of especially high-quality and long-lasting rechargeable battery systems, we will continue to expand not only our development, but also our manufacturing activities in Germany, presumed we find sufficient employees in Germany,” said BMZ general manager Sven Bauer at the groundbreaking ceremony for the new buildings.

REUTLINGEN, Germany – In response to malfunctioning first generation Classic+ Line systems, Bosch eBike Systems has started a free replacement program for retailers.

I

n a statement sent to retailers Bosch eBike Systems says, “Bosch continuously carries out quality inspections of all of its products. In the course of these activities, it was found that in rare cases disruptions can arise when operating our first-generation (Classic+ Line) drive systems. These disruptions manifest themselves as clicking noises or as disruptions affecting the freewheel function.” Any customer complaining about the freewheelrelated irregularities while operating the drive systems is offered a free replacement. Bosch also extended the warranty period to December 31, 2016.

Patrick Keating, Vélo Capital Partners

Mastering the Hype Cycle For the past several years in the IT industry Gartner Research has published its annual Hype Cycle Report.

In 2014 Gartner evaluated the market promotion and perception of value for over 2,000 technologies, services and trends in over 119 areas. This report tells a story of how technologies, services and strategies evolve from market hype and excitement of value to becoming a mainstream part of business. For the past three years at VCP we’ve also analyzed hundreds of technologies across the global cycling industry as we work to establish the first early and expansion stage venture capital fund and, in addition, advise a select group of clients on strategic planning issues. We are continuously adjusting our own version of the Hype Cycle and for innovations we are looking at in the global cycling industry. But, over the past several years the main technologies that have been hyped have ranged from electronic shifting to next generation electric motor drive units to build-to-order supply chains and internet bicycle component and companies. Whether your are a component or bicycle manufacturer or IBD you must learn to distinguish the hype from reality to make sure you make the right decision when deciding whether or not to invest in a fad or a trend or a pain killer versus a nice-to-have technological or business process improvement. pkeating@velocapitalpartners.com

8

January/February 2015 BIKE europe

MARKET REPORT TAIWAN Bicycle kingdom wants to be at the forefront of the worldwide industry

Taiwan Bicycle Export Stabilizing TAIPEI, Taiwan – For a third year in a row Taiwan’s bicycle industry exports declined in volume. Nevertheless statistics from the country’s Bureau of Foreign Trade show the export of bicycles for this year reached its low in the first half of 2014 and is stabilizing in the second half.

Jan-Willem van Schaik

B

etween January and October 2014, the volume of Taiwan’s export of bicycles declined by 7.6% – from 3,321,614 to 3,070,074 units compared to 2013. Europe is still the most important market for Taiwanese bicycle manufacturers, although Europe’s market share has been declining slowly in the past decade. Today around 51% of the total export goes to Europe. But the Taiwan bicycle industry is no longer aimed at high volume production. Encouraged by industry initiatives like the A-Team and Taiwan Bicycle Association’s (TBA) Chairman Tony Lo, the long-term strategy changed to R&D and high-end products. For the bicycle manufacturers it looks like this strategy is paying off. The average price of exported bikes has been rising in the past years at such a pace that it is compensating for the declining volume, as it still results in a higher turnover. However, Taiwan’s export statistics do not show whether this strategy is also profitable for the parts manufacturers and if they

can raise their average price sufficiently to compensate for the lower volumes.

High-end bicycle kingdom In line with the industry’s strategy, the average price increased by 7.1% to € 381.18 per unit.

“The bicycle industry in Taiwan has been developing during its history, making the island the ‘high-end bicycle kingdom’ it is today,” said Agnes Hwa-Yue Cheng (Taipei Representative Office in Germany) recently. “The integration of the island’s upstream and downstream supply chain put it at the forefront of the worldwide industry.” Perhaps sales volumes did not meet expectations, but the increase of the average price suggests a positive outlook for the future. At the Taipei Cycle Show last March, Giant President and Taiwan’s Bicycle Association (TBA) Chairman Tony Lo stated that 2014 would be a promising year. “The global increase in cycling participation means our industry has a huge potential to expand. Look for example at the growing number of women riding sports bikes. Therefore the industry de-

In line with the industry’s strategy, the average price of Taiwan made bicycles increased by 7.1% to € 381.18 per Photo Bike Europe unit.

veloped female-specific sports bikes. We have to look for opportunities in the market.”

Taiwan bike industry dominating Thanks to the higher average price, Taiwan’s bicycle export value only saw a minor decline of 1% and stands at € 1.170 billion from January to October 2014. The transition from a high volume, low price production base to lower volume and higher priced bikes didn’t come easy. Only six years ago Taiwan was still exporting 5 million bicycles annually. The current export volumes required large-scale reorganizations of manufacturers of bicycles, as well as parts and components producers. Several companies relocated production to low labour cost areas or founded new subsidiaries in order to be closely located to OEM production bases. As a country Taiwan is losing more and more volume to low cost neighbours like Cambodia. The fact that Cambodia is poised to take over Taiwan’s leading position for EU exports isn’t worrying the Taiwanese. That’s because of the six bike-making facilities dominating in Cambodia, five are of Taiwanese origin. The same goes for the Philippines. Since December 24, 2014 this country is included in the EU’s Generalized System of Preferences Plus (GSP+). This will make all imports from the Philippines to the EU duty free including bicycles, parts and accessories. In recent years bicycle exports from the Philippines to

the EU markets was already growing rapidly.

In the first six months of 2014 it expanded by 28% from 338,000 units in the same period in 2013 to 433,000 this year. GPS+ will also have a very positive effect on the bicycle producers in the Philippines. But again this won’t worry the Taiwanese industry as the Philippines have just two big manufacturers owned by, indeed, the Taiwanese. Procycle Industrial Inc. is a subsidiary of Taiwanese trader Jumbo Brico Associated Co. Ltd. and Collie Cycle Inc. is a subsidiary of Taiwanese trader Dumar International. Taiwan’s strong position in Asia’s production base is also reflected by the growing importance of the Taipei Cycle Show. This global event is turning into an industry show where nowadays more is taking place inside the booths and behind the scenes than with fancy presentations and posh products displays. It’s all about discussions about, and showing off, first prototypes of new products for the next model year. All this is further enhancing Taipei Cycle’s objective, which is to be THE hub for all bike related business in Asia. To invigorate this concept, the Asian bike industry alliance came to light last November at the Taichung Bike Week. It was said that this alliance is (among other objectives) being founded in view of the new ISO 4210 – 1:2014 safety standards for (electric) bicycles. These harmonized standards are coming into force on a worldwide scale.

Taiwan Bicycle Export 2013-2014 (January – October) Country

2013 Units

Value NT$ x 1,000

2014 Units

Value NT$ x 1,000

January

398,026

5,109,831

462,664

6,009,917

February

287,363

3,872,898

287,966

3,798,820

March

334,201

4,279,290

353,255

4,673,836

April

315,385

3,524,670

309,290

3,542,383

May

197,004

2,917,021

288,516

3,283,073

June

226,995

3,967,316

230,371

3,174,392

July

290,074

4,675,964

342,355

4,827,158

August

306,386

4,694,415

336,178

4,724,200

Spetember

329,062

5,166,900

322,286

4,664,175

October Total Source: BOFT

385,578

5,880,327

388,733

5,836,824

3,070,074

44,088,632

3,321,614

44,534,778

BIKE europe January/February 2015

9

BUSINESS

HL Corp: World’s Biggest Handlebar Forming of Asian Maker Launches Shock-Absorbing Stem Industry Alliance

India to Use Taiwan’s Technology

HSIANG, Taiwan – It will be one of the innovations featured at this year’s Taipei Cycle Show: shock-absorbing stems. HL Corp., the world’s biggest maker of handlebars, stems, seatposts and (suspension) forks claims its new product, “Allows bikers to enjoy a smooth ride without the extra cost and weight of a suspension fork.”

LUDHIANA, India – “How to upgrade the quality of bicycles made in India,”’ was the main topic discussed during a recent meeting between India government officials and representatives of the national India bicycle industry.

S

tock market-listed HL Corp. is one of the world’s biggest component manufacturers. The company produces over 50 million (suspension) forks annually.

As for handlebars, stems, and seatposts; here the company holds a 35% global market share.

HL Corp operates 7 production locations in Taiwan and China as well and one sales office in the US. The company that was started in the seventies by Jim Liao and his brothers as a small steel factory has been growing over the past 40 years, to a company with over 8,000 employees and that currently, next to steel, incorporates alloy and carbon in its products.

Using the latest materials, HL Corp prides itself in the fact that it, “has succeeded in harnessing key technologies, such as our unique double butted handlebar forming techniques, to provide designs that are among the strongest, lightest and most stylish on the market. As a pioneer in the Taiwan bicycle components industry, our ISO-certified facilities continue to produce award-winning, patented designs

TAICHUNG, Taiwan – At Taichung Bike Week, held last November, plans on forming an Asian bike industry alliance came to light. It is said that this alliance is (among other objectives) being founded in view of the new ISO 4210 – 1:2014 safety standards for (electric) bicycles.

T

HL Corp holds a 35% world market share for Photo Bike Europe handlebars, stems and seatposts.

based on breakthrough technologies. A good example of this is our tool-free, side-clamping adjustable stem design, which brings instant and easy-to-use height and angle adjustment.

Also, we are currently pioneering a shock-absorbing stem concept, which will allow riders to enjoy a smooth ride without the cost and weight of a suspension fork.”

The shock-absorbing and adjustable stems are made in Taiwan under the Satori brand name.

In China HL Corp produces its (suspension) forks under the Zoom brand name. The latest product here is a front fork for urban bikes with integrated headshock.

hese harmonized standards are coming into force on a worldwide scale and have been developed in response to demand throughout the world; more on page 3.

The plans for forming the Asian bike industry alliance were discussed at a meeting held in Kunshan, China early October with officials from the bicycle associations from China, Japan, Korea, India, Russia, Taiwan, and the Philippines, as well representatives from the industry. The meeting in Kunshan was to prepare the official founding of the Asian Bicycle Industry Alliance. At the October meeting China Bicycle Association Chairman Ma Zhongchao reported on the preparations for the founding of the alliance. Tony Lo, Giant CEO and Chairman of the Taiwan Bicycle Association, also attended the meeting. Another representative from the China Bicycle Association presented a draft on the guidelines for the Asian Bicycle Industry Alliance on which amendments were proposed. It is planned that the Asian Bicycle Industry Alliance will be officially installed at the 2015 China Cycle Show, to be held next May in Shanghai, China.

O

ne of the options discussed was the possibility to import production technology.

India’s minister of State for Micro, Small and Medium Enterprises, Giriraj Singh attended the city of Ludhiana to meet among them Subash Lakra of SK Bikes, Harmohinder Singh Pahwa of Nova Bicycle Industry, Rajiv Jain, secretary of Fico and BS Dhiman, President Avon Cycles.

To grow the export of bicycles India’s industry is looking for opportunities to take the quality of the products to a higher level. During the meeting with the minister it was suggested that the import of bicycle production technology from Taiwan and China should be transferred and made available to local industries in order to manufacture high-end cycles in India.

The department of Industrial Policy and Promotion has been given the responsibility to upgrade Ludhiana’s bicycle research and development centre and to bring it to international standards. It was also discussed that a new ‘common facility centre’ would be founded in order to develop aluminium alloy frames and forks, derailleurs, grip shifts etcetera.

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BIKE europe January/February 2015

11

BUSINESS With new motors as well as co-development possibilities with complete bikes

GreenTrans Steps Up E-Bike Market Presence TAOYUAN, Taiwan – It’s part of a huge US$ 11.5 billion car company called China Motor Corporation (CMC). And now, besides these 4-wheelers it is also producing complete e-bikes. This takes place through the CMC subsidiary GreenTrans; known since 2010 for its e-bike motors as well as e-scooters.

TAICHUNG, Taiwan – Its primary focus is on the US, Asian and South American markets. But years ago United Engineering also held quite a position in Europe. To such an extent that the company opened a facility in Vietnam to avoid dumping duties and take advantage of duty free export to the EU, thanks to the GSP arrangements.

W

Jack Oortwijn

W

ith over 40 years of experience in the automobile industry, CMC wanted to become actively involved in green energy development. With that in mind the company started GreenTrans in 2010. With the support of the company’s car technologies GreenTrans launched a series of drive systems for electric bikes as well as e-scooters. This series is expanded with a brand new central motor and rear motor cassette type which will be presented at the 2015 Taipei Cycle Show. As well as the two new motor types GreenTrans is now offering its customers the possibility of sourcing complete e-bikes. Also, the company is ready to enter into co-developments with bike makers for projects such as making electric rental bikes.

GreenTrans’ new central motor combines low

United Engineering Again Eyeing EU

GreenTrans is now also offering its customers the possibility of sourcing complete e-bikes.

noise levels (less than 60db) with high performance (70Nm) and ultra-light weight (less than 4 kg). It is also compatible with the gear system of mountain bikes (triple chainwheel front, derailleur back) as well as hub-geared city bikes that come with regular chains or belt drives. The central motor comes in 3 versions;

Photo Greentrans

for 36V with rear rack battery; for 36V with downtube battery and for 48V with downtube battery. In the 36V configuration the central motor has a maximum output of 350W and 500W in the 48V set-up, making it suitable for use in high speed e-bikes. Production of the new central motor started at the end of 2014 in Taiwan.

Rear motor e-bike power kit

GreenTrans’ new central motor combines low-noise with high performance and ultra-light weight. Photo Bike Europe

GreenTrans also offers a rear motor e-bike power kit which is capable of working with a 10 speed cassette freewheel and quick release. Furthermore the rear motor features a two-step power regeneration function, highly suitable for the high-end e-MTB’s which are to be THE trend in 2015. The patent designed GreenTrans torque sensor is able to react to pedaling torque from both sides. GreenTrans’ drive systems also offer a unique dual-core high efficiency power management technology. With that the range GreenTrans systems offers could even reach 130 kilometers in ECO mode. Every part of the various GreenTrans ebike power kits meets the safety requirement of EN15194, CE and UN38.3. However, they also achieve the IP56 waterproof standard.

The GreenTrans drive systems are tested one hundred thousand times in a laboratory stage durability test and ten thousand kilometers in road testing under different conditions.

ith that United Engineering followed in the footsteps of Strongman, MT Racing, Asama, Sheng Fa, A&J Ent. Co., Ltd., and Liyang back in 2004. However, in subsequent years United Engineering (CEO Jack Hsieh) focused more on the US market and stepped out of the stiff competition for production sites with lower labour costs and/ or more favourable export conditions.

The company is still producing in Taiwan where its annual production stands at 130,000 units. United Engineering makes them with 120 employees. Annual sales turnover stands at around US$ 40 million. The company’s main brand is KHS. Road bikes, MTB’s, Hybrids, and Urban/Commuter bikes carry the KHS brand name, as well as Tandem bikes. Manhattan (for Cruise/Lifestyle) and Free Agent (for BMX) are the company’s other brand names. As well as Tandems, United Engineering has one of the biggest offerings in 650B MTBs. The Taichungbased bike maker also specializes in making extra large mountain bikes (XXL and triple XL sizes). As said, United Engineering’s main focus is on the US where the company also operates a warehouse. However, KHS is eyeing a return to Europe and is looking for distributors in various EU countries.

United Engineering’s main focus is on the US. However, with its brand KHS the company wants to return to Europe.

Photo Bike Europe

12

January/February 2015 BIKE europe

BUSINESS Marwi Group ready for the future with:

Fully Automated Pedals & Saddles Production TAICHUNG, Taiwan – In 2011 Marwi Group completed building its new factory and HQ in Taichung, Taiwan. Since then it took some time to have all the latest machinery installed. However, that process is completed. Marwi Taiwan is now working with fully automated production lines for pedals and saddles.

That Marwi and its CEO and owner Patrick Pai invested heavily in the latest production technology is because the company has a position to uphold and because the demand for the company’s products is rising. Marwi Group is one of the biggest pedal manufacturers of the world with production facilities and sales offices in 6 countries: Taiwan, Indonesia, the Netherlands, Germany, the Czech Republic and the USA. Marwi employs in total around 700 people. As globally organized component maker Marwi Group has production locations in Taichung, Taiwan as well as in Tangerang, Indonesia. Marwi’s European headquarter for sales and marketing is located in Rotterdam, the Netherlands. All Marwi products are distributed in Europe from their central warehouse in Rotterdam, and through a second distribution hub in the Czech Republic. Next to that there are R&D centers located in Germany and in Taiwan. Currently Marwi sells most of it products in Europe (52%) followed by Asia

Marwi is the first Taiwan parts maker to use robots.

(29%) and the USA (15%). Marwi Group’s main brands are Union (pedals, lights and more for the European market), Xerama (pedals for other markets) and SSR Pro as well as Selle San Remo (saddles). Next to that there are Ti-Dye for spokes, Nightpro for AM lighting sets and BikeTool for AM toolsets. The newest produc-

Marwi operates now one of the world’s biggest carousels incorporating vacuum technology for the saddles’ foam.

T H E

B I K E

E X P E R I E N C E

Photos Bike Europe

tion technologies at Marwi Taiwan include robots. Seeing the first robots appear at the production lines of the company’s Taichung facility seems to herald the start of a new era for parts making in Taiwan. But whether Marwi is setting the first step for an all-out modernization phase throughout the bike industry in Taiwan remains to be seen. The robots at Marwi are linked to injection moulding machinery used for making City, Trekking, and kids bike pedals. According to CEO Patrick Pai, the rising demand for the company’s pedals made it necessary to install completely automated production lines capable of a 24/7 manufacturing.

Combining the injection moulding machinery with robots offers that continued process. Next to the bigger 24/7 production CEO Pai invested in the most modern machinery as the labor costs in Taiwan are quite stable. In particular when comparing these costs to other Asian countries as well as China.

In addition to pedals Marwi is also stepping up its production of saddles, which are made under the SSR Pro and Selle San Remo brand names. For that the company installed in its Taichung facility one of the world’s biggest carousels incorporating vacuum technology for the saddles’ foam. Here also robots are used in the manufacturing process to complete the saddles.

Dahon Opens New Factory in China SHENZHEN, China – The world’s largest producer of folding bikes has officially made the move to a larger manufacturing facility located in the Songgang district of Shenzhen, China.

An official grand opening ceremony was held last December, which coincided with the 2014 Dahon China Distributor Conference. The company has relocated after 19 years at their factory in Shajing, Shenzhen, which opened in 1995. The new location enables Dahon to retain most of their original staff while increasing manufacturing floor space to 60,300 square meters and obtaining ISO9000 and ISO14000 certification.

The move aims to double annual production output to one million units, while improving the quality levels expected from a leading brand. Now, the entire process of production including heat treatment and painting is located in one facility. Starting from tubes at one end, fully assembled and packaged bikes will be shipped at the other end of this modern production line. Dahon further retains its onsite lab and testing facility, being one of very few manufacturers in the country licensed to do in-house testing.

The 2014 Chinese distributor conference coincided with the factory opening ceremony.

Around 200 distributors, some suppliers and government officials were treated to a tour of the factory, product and marketing presentations and evening entertainment, including a traditional Chinese lion dance and staff prize draw.

China’s domestic bicycle market continues to grow largely due to the increasing interest in fitness and leisure cycling amongst the middle classes. Dahon’s top performing distributors were awarded for their outstanding sales growth.

Dahon has relocated after 19 years at their factory in Shajing, Shenzhen.

Photo Bike Europe

BIKE europe January/February 2015

13

BUSINESS Manufacturer Darfon is looking for more, new countries

BESV and Votani Spread Their Wings in Europe TAIPEI, Taiwan – The e-bike ambitions of Darfon Electronics are taking more and more shape. A few years ago the Taiwanese manufacturer of IT-components and keyboards entered the e-bike industry. First as component supplier and in 2014 they introduced their global brand BESV and launched Votani in the Netherlands.

Chris Wang: ‘A lot of people will change from a regular bike to an e-bike.’

Photos Arnauld Hackmann

Arnauld Hackmann

I

n 2014 Darfon Electronics was focused on introducing BESV in the US, Japan and the European countries. In March 2014 Votani was introduced in the Benelux at the FietsVAK trade show in Amsterdam. Chris Wang, senior vice president of Darfon Electronics, says that the international start of BESV is encouraging. “BESV is a new brand with a new e-bike concept. That requires a different approach than regular e-bike brands. It is encouraging to receive several awards and positive feedback of end users as well. But still I’m not 100% satisfied. We have been putting a lot of effort in developing BESV, but the start of the mass production took more time than we expected. The production of the Panther was started eight months ago. Recently also the Lion went in mass production, unfortunately with a delay of several months.”

Talking about Votani, Wang is proud of the company’s achievements. “We are growing

fast in the Netherlands. We started from zero in March 2014 and at the end of the year we had recruited almost 100 dealers. That’s a good record. The marketing concept of Votani is becoming better and better, so I’m very satisfied about this result.”

New distributors Wang is convinced that the international e-bike market is still growing because an increasing number of consumers will change from a car to an e-bike for their daily transportation. “In Asia and in the US you see that more people want to buy an e-bike. In Europe the slow economies still have a lot of impact on sales, but I expect that a lot of people will change from a regular bike to an e-bike, especially when local governments encourage their residents with tax incentives.” According to Wang the Benelux countries are important for Darfon in Europe. The sales of Votani are already growing fast and as soon as possible the distribution of BESV will start as well. “Next

to the Benelux, countries like Germany, Switzerland and Russia are important for us. Especially for BESV,” says Wang. “Recently new distributors were recruited for both Switzerland (Ontek) and Russia (Intense). For the German market we have not decided yet to recruit an agent or to have our own sales office.”

Aggressive targets In 2015 Darfon wants to take serious steps in sales by recruiting more agents for BESV and dealers for Votani in the Netherlands and Belgium. “We have set aggressive targets for our teams. We hope to find at least five new countries for BESV. Beside Germany also Italy, France and the United Kingdom,” says Wang.

“In the Benelux we want to start with BESV as well, but we are also focused on Votani. We need more sales reps in the Netherlands and Belgium to strengthen Votani’s base. The dealer network should grow to 200 dealers in the Benelux.”

Show News

Study trip: Dutch and Belgium dealers visit Darfon’s test lab.

As exhibitor of the Taipei Cycle Show, the Darfon booth is located on the fourth floor, in front of the exhibition hall. They will showcase BESV’s complete product line, including gold award-winners Lion LX1, Panther PS1 and the new models Jaguar JS1 and Cat CF1 for the first time. The Jaguar JS1 features a strong, durable frame, for long-lasting performance and is ideal for both short and longer rides in the

countryside. The e-bike features the advanced Algorhythm power drive system. The BESV Cat CF1 e-bike has a neat and stylish design and is especially suitable for daily commuting, while its advanced customized technology ensures a smooth ride. Darfon positions this e-bike as affordable in green, today’s fashionable colour.

At Taipei Cycle the Lion LX1 will be equipped with Darfon’s smart App, which can connect smartphones with the e-bike. The rider’s smartphone can replace the BESV interface, allowing the user to control the e-bike directly through his smartphone. Smart Apps like My Journey (trip planner), Anti-theft System and History (trip review by route, time and altitude) increase the ease of use.

Dealers convinced after factory visit Benelux dealer magazine Tweewieler recently organized a study trip for 40 dealers to Taiwan including a visit to Darfon Electronics. After a company presentation the Dutch and Belgian dealers attended the production facility, the test lab and made outdoor test rides. This visit convinced several dealers to start selling Votani.

Times are changing as well as the needs of customers. Today and in the future, short-term delivery and reliability are crucial.

We offer the entire spectrum of bicycle parts and accessories, all from our central warehouse in Germany to the rest of the world.

A solution that is quick, simple and direct.

Messingschlager GmbH & Co. KG — Haßbergstr. 45, 96148 Baunach, Germany — www.messingschlager.com

14

January/February 2015 BIKE europe

MARKET REPORT BANGLADESH Driven by tax schemes, Bangladesh food giant enters the bicycle market

PRAN-RFL To Commence Export To Europe In 2015 DHAKA, Bangladesh – PRAN-RFL Group is expanding rapidly and its bike factory is expected to operate at full capacity by mid-2015. The diversified group is the latest to join the bicycle business in Bangladesh and started making complete bicycles about four months ago.

Satnam Singh

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urrently we are manufacturing around 10,000 bicycles every month though our plant capacity is around 500,000 units annually,” said R.N. Paul, Director of PRAN-RFL Group, the country’s largest food and nutrition producer. PRAN-RFL Group’s bicycle factory is located about a five hour drive from the country’s capital in the Habiganj, which is a district in the Sylhet division in the Northeastern part of Bangladesh. The driving force behind the company’s decision to start the bike factory was the new Generalised Scheme of Preferences (GSP) of January 1, 2014 which included Bangladesh. Initially, the plant commenced operation with spokes, rims, and a few accessories. The plant has yet to commence exports.

Export in 2015 “We will likely begin export in March 2015,” said Paul. The company is investing US$ 20

We will focus on the European market and in 2-3 years’ time, we will try to enter the US market as well,” said R.N. Paul, Director, PRAN-RFL Group.

million in the bicycle project. Initially, PRANRFL will operate through a Taiwan-based agent. Once its credentials are established in the export market, PRAN-RFL will start exporting on its own at a later stage. It has identified a couple of key markets in Europe. It will focus on the UK and the Netherlands once exports commence in the second half of 2015. When asked if there are plans to enter the US market, Paul replied, “We will export to any country in the world. But initially we will focus on the European market and in 2-3 years’ time, we will try to enter the US market also.”

Photo Satnam Singh

Taiwanese agent The firm started producing conventional bicycles and mountain bikes and will soon expand its range, depending on customer demand.

“Currently, we only supply the domestic market and for that our range is adequate,” said Paul. “Depending upon the requirements of our Taiwanese agent we will soon introduce more models. The Bangladesh domestic bike market is growing rapidly and local dealers are importing bikes and selling them locally. We see a huge potential in our domestic market and therefore started to distribute locally.”

PRNA-RFL Group is planning to invest another US$ 25 million over the next 2-3 years in plant equipment and model development, to keep up with the market trends in Europe. It is also

planning to set-up a tire and tube manufacturing plant. “We are based in a big industrial town in Habiganj and the proposed tire/tube plant will be built in the same area as the bicycle factory,” Paul explained. “Our board has already given the go-ahead to invest in the tire/ tube plant,” he added. “It will most likely be operational in 2016.”

When asked why his company is entering the bicycle industry, Paul explained, “Metal is in our blood as we have been in the cast iron business for making agricultural equipment since 1981.” PRAN-RFL Group is a diversified

conglomerate with interests in food and nonfood items such as plastics, PVC, and light engineering. It generates an annual turnover of US$ 1.2 billion and is exporting to 94 countries. PRAN-RFL is subdivided in two main divisions. PRAN controls the packaging of food products and RFL deals in PVC, plastics, and light engineering. Interestingly, this company is also regarded as a big player in plastic products –employing over 60,000 people. “Our promoter’s goal is to provide employment for a large number of people and bicycle making is a labour intensive industry,” Paul stated.

BIKE europe January/February 2015

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MARKET REPORT BANGLADESH

Alita Bangladesh to Grow Capacity at Chittagong Plant CHITTAGONG, Bangladesh – To meet the growing demand from their clientele, especially those based in Europe, Bangladesh-based bicycle makers are expanding their capacities. During the first ten months of 2014 that demand grew by over 20% (see cover page report). Moreover, the attractive duty concessions offered by the European Union to bicycles manufactured in Bangladesh puts the country in an enviable position.

DHAKA, Bangladesh – M&U Cycles Ltd is adding capacity to its facility in Ghazipur.

“We are investing around US$ 2 million in capacity expansion and in the setting up of a modern testing lab at the plant,” said Moshiur Rahman Litton, M&U chairman.

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Satnam Singh

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hittagong based Alita (BD) Ltd, producing around 15,000 to 20,000 bicycles per month, has decided to go ahead with an expansion in 2015. The company was a bit cautious on the issue for the last few years.

“Our clients are forcing us to expand capacity and we have decided to enhance production by 25,000 to 30,000 units by the end of 2015,” said A.H.M. Ferdous, Managing Director of Alita (BD) Ltd. Alita was planning to set up a second production facility in Bangladesh to cater the domestic market. The company, based at the Export Processing Zone (EPZ) in the port city of Chittagong has been on a look out for a suitable site for its next plant for the domestic market. But now that plan has been shelved and Alita has decided to focus on the export market. The company will soon finalize the investment for the proposed expansion.

“We are working on the investment and it will be decided in the next couple of months,” said

Also M&U is Adding Capacity

Chittagong based Alita (BD) Ltd producing around 15,000 to 20,000 bicycles per month, has decided to go ahead with the expansion in 2015.

Photo Satnam Singh

Ferdous. The expansion would be mainly in the assembly line, paint and welding section of the plant. Alita already set up its first plant in Chittagong in 2009, to cater exclusively to the European market. Alita is largely exporting bicycles to the UK, Spain, and Portugal. “The United Kingdom is one of our largest markets in Europe and with the forthcoming expansion, we will focus on Germany,” stated Ferdous.

Alita is producing around 200,000 units from its 100% export oriented facility. “Hardly 1% of

the production finds its way into the domestic market,” said Ferdous. Existing Bangladesh bike makers have also announced expansions to meet demand from their European clients, while some new players have entered as well.

When more bicycle projects start-up in Bangladesh in the next couple of years the country could become (a) bicycle production hub in South East Asia according to Ferdous. Currently, over 500,000 bicycles are exported to Europe from Bangladesh annually.

&U is expanding its capacity by 60,000 units annually at the existing plant.

Currently, the company is manufacturing 160,000 units each year. Construction for the expansion is expected to finish by April 2015. Currently M&U Cycles is shipping most of its production to Europe. Recently the company opened the Spanish market for its bike range in 2014 and is now also focusing on the Scandinavian market. M&U shipped 150,000 bikes in 2014 to the EU markets. For 2015 M&U is looking to export e-bikes with mid-motors to Europe.

“We used to produce e-bikes with front hub motors. As mid-motor e-bikes are popular now in Europe, we are working on e-bikes with this design,” said Litton. The company started e-bike manufacturing in 2011 and exported some thousands to the Dutch and British markets. However, the firm’s new e-bike project is in its initial stages. A mid motor must be sourced, which impacts lead times, while production is planned to be limited. M&U’s e-bike with mid motor is planned for the mid-price range and targeted to the markets of Holland, the UK and Belgium.

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January/February 2015 BIKE europe

MARKET REPORT BANGLADESH As part of value-added program that includes quality improvements and upgraded production standards

Meghna Starts Carbon Frame Production in 2016 BANGLADESH, Dhaka – Meghna Group is to commence the production of carbon frames in 2016 instead of 2015, as announced during the Eurobike show last year. Meghna chairman Mizanur Rahman told Bike Europe recently that the plant has been built and that machines are on their way from Taiwan and will arrive in April.

Satnam Singh

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e believe the full-fledged production of carbon frames will start early 2016,” said Rahman.

Meghna is investing US$ 5 million in the carbon frame and forks facility in cooperation with Taichung based ADK Technology Ltd. In addition, the Bangladesh producer has made it clear that it has no plans to further increase its bike production capacity. “The export market to the EU has become very competitive in the last years, as more bicycle makers are joining the business. Next to that our focus is nowadays more on quality than on volume,” explained Rahman. He also expressed his worries on Chinese trading companies which are increasingly eyeing Bangladesh bicycle companies for exports to Europe and harming the interest of genuine suppliers like Meghna.

Carbon frame production Meghna is focusing more on adding value to its bike production. The company is currently supplying bikes to its European customers in the price range of US$ 140 – $ 150, but aims to increase this to US$ 160 – $ 170. The average value of Bangladesh-produced bikes imported into the EU stood at US$ 96.71 during the first ten months of 2014. “When we start the carbon frame production we are targeting prices of over US$ 200 from 2016 onwards,” Rahman said. For adding value, improving quality and production standards, Meghna has also ordered wheel building machines from Holland Mechanics for the company’s Transworld plant.

Meghna’s customers “We are growing at a rate of 10-12% annually on the strength of value addition as we graduate into higher price levels year on year,” Rahman added. Meghna phased out its kids’ bike production four years ago. “Currently the majority of our production comprises of US$ 160plus bikes. We only make a few freestyle bikes in the US$ 100 range.” Most of Meghna’s customers are based in the UK. Over 60% of the company’s annual production is shipped to the United Kingdom. Exports to the US started in 2013 but remain marginal as of yet. For adding value Meghna is, along with producing

Meghna’s focus nowadays is more on quality and adding value than on adding production capacity.

bikes with carbon and aluminium frames, also eyeing e-bikes.

Folding bikes The Bangladesh bicycle maker is working on folding e-bikes. “A 20-inch model is ready for sales in the 2015 season and they are designed for the requirements of the UK, German, the Dutch, and Belgium markets,” Rahman said.

He added that between 3,000 – 4,000 units are in the production planning and that they

Photo Satnam Singh

will be exported for a FOB price in the range of US$ 300-$ 400. Meghna intends to increase its footprints in the domestic market also. It manufactures bikes for the local market in a separate plant called Mahim Cycles. “Currently, we manufacture 10,000 bikes per month but plan to grow the capacity as bicycle sales are also rising in the Bangladesh market,” Rahman said. He is also entering the bicycle retail market of Bangladesh by opening three ‘exclusive life’ outlets in the country’s biggest cities.

“We have the land and it is only a matter of time to get things ready”

GermanBangla to Revive Bicycle Business DHAKA, Bangladesh –GermanBangla Bicycles Ltd. is planning to revive its bicycle venture in light of Bangladesh’s emergence as a key bicycle export hub to Europe. The company plans to revive the venture by the end of 2015.

Satnam Singh

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he whole facility including machinery is at our disposal and we are planning to commence the project by October 2015,” said S. M. Fakhar-Uz-Zaman, MD of GermanBangla Bicycle Ltd, in an exclusive interview with Bike Europe in Dhaka recently. The new plant is likely to be built on a four-acre plot in Mymensing, which is one of the districts of Chaka and is bordered on the north by India. “We have the land and it is only a matter of time to get things ready,” said Zaman. “Our partner has already planned the investment to revive the bicycle project. We have earmarked an investment of around US$ 3.5 million for the bicycle project,” he added. Though the company is in closed contact with overseas businesses, the investor has no plans to start the project with an international partner. “The partner will be a local one, this time from Bangladesh,” said Zaman. But it will prefer to retain the same brand name.

“It is registered by us and people abroad are familiar with the brand name. We expect it will work this time,” he stated.

The company has no plans to leave the bicycle business. “We know the business in and

out now and even how to deal with the worst situations,” Zaman stressed. But this time, he is looking to join hands with a local partner.

“The overseas partner prevented us from entering certain markets, but with a local investor or partner there will be no cap on entering markets, we are now free to look for markets anywhere in the world.”

The group, with expertise in manufacturing and installing telecom towers and pre-engineered structures, strongly believes in the potential of the bicycle business. With GSP concessions the opportunities are immense and there is a potential growth for everyone according to Zaman. Moreover, it has also shown that a few more domestic companies with diversified interests are considering entering bicycle manufacturing. One of them is a local motorcycle maker, who is seriously considering bicycle manufacturing and is in the midst of conducting a feasibility study. The €4 million joint venture GermanBangla Bicycles Ltd crumbled in 2012. The German partner Panther Bikes opted out of the joint venture and set up in 2008 for manufacturing bicycles at a place called Dhamrai, about 40 km northwest of Dhaka. “We hold a 67% stake in the venture, while Panther (has) the remaining 33%,” said Zaman. The venture made around 100,000 units during a three-year period out of which 40% were kid bikes. Commercial production at the plant commenced in 2009. After Panther refused to pick up stock, GermanBangla reached an understanding with a Taiwanese company, which shipped around 12,000 units

“The partner will be a local one, this time from Bangladesh,” said S.M. Fakhar-Uz-Zaman, Managing Director, Photo Satnam Singh GermanBangla Bicycle Ltd.

in 2012. It stopped the operation in the same year. GermanBangla borrowed money against stock to buy spare parts to supply bikes to the German partner but when it refused to pick up the stock the liability became so exorbitant that it became unfeasible to run the plant and consequently sold the land to clear the debt.

New future The new plant will have the capacity to produce 500,000 units annually. Hitherto the ven-

ture was focused on the overseas market but this time it will make bikes for the domestic market also. “The majority of the 400,000 units will be targeted for the export market and another 100,000 units for the local market,” Zaman said. While demand for quality bikes is also picking-up in Bangladesh, the company is also planning to enter the retail trade. Meanwhile, it is also in touch with a Taiwanese buyer, who assures to buy the stock if the project is revived.

BIKE europe January/February 2015

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MARKET REPORT CHINA/INDIA

China’s E-Bike Industry Enters New Era with Production Drop SHANGHAI, China – China’s electric bike industry experienced its first production drop in the past 15 years. During the first half of 2014, the production of the top 50 e-bike manufacturers dropped by 1.98%; a big contrast to the annual average 30% increase in the past.

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ver the years the number of e-bike manufacturers in China decreased from 2,000 in the year of 2000 to around 700 today. Among them only 393 have annual turnovers of over CNY 20 million (3 million euro). This consolidation made the top manufacturers, who were already dominating the market, even bigger. In 2014, Aima became the first e-bike company that accomplished annual sales of over 4 million units; an increase of 15% while the smaller companies were struggling. According to China Bicycle Association (CBA), the top ten e-bike companies accounted for 47% of the total production in 2014. Today, China has 200 million e-bikes on its roads totaling CNY 100 billion (14bn euro) in value, a tenfold increase from 2005.

The value of the entire upstream and downstream industry chain has reached CNY 200 billion (28 billion euro). Since 2013, China has set and implemented regulations for the specs and size of e-bike lithium batteries while also a Battery Management System was launched.

In October 2014, China reached a strategic collaboration agreement with Germany. With that

During the first half of 2014, production of Li-Ion battery equipped e-bikes reached 1.7 million units; an increase of 36% and accounted for over 50% of Photo Bike Europe China’s total e-bike export.

the Chinese electric car brands will adopt the same charging standards as BMW and Audi.

During the first half of 2014, the production of lithium battery equipped e-bikes reached 1.7 million units; an increase of 36% and accounted for over 50% of the total e-bike export.

Currently, major motorcycle manufacturers are entering the e-bike industry at full speed as demand from the motorcycle market shrinks.

China’s motorcycle tycoons like Haojue, Zongshen, and Dayun are all investing in e-bikes. This stronger competition forces current e-bike makers to upgrade themselves in order to survive.

Hero Eco Strengthening A2B Brand in Key EU Countries with Flagship Stores NEW DELHI, India – Over the past four years significant investments were made

by India’s biggest bike maker in developing a range of electric two-wheelers which is now distributed in around 22 countries worldwide.

style maxim izin g For a sporty ridin g adjustable an d w ith y, it ns De al Du l. ro cont extra com fort. co olin g la m ella s for

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ero Eco sold more than 10,000 e-bikes under the A2B and F4W brands in 2014.

MD Naveen Munjal says, “We continue to focus our efforts on the premium sector. We are looking forward to a stable year of growth consolidation and the opening of new dealerships in our existing markets.” Hero Eco has been active in promoting its premium A2B brand with the openings of flagship stores in some European countries as well as on other continents. To hike product visibility stores have been opened in Poland, Ireland, Colombia, Mexico and Japan last year. “We have a busy year ahead as we have one flagship store opening in late February in Edinburgh, with two more planned for the UK Cotswolds. We just opened at the Lotte World in Seoul and have planned three flagships opening in Japan in 2015 as well as in Croatia, Holland, Iceland and Sweden,” explained MD Munjal.

Conti/Brose mid-motor As for new 2015 e-bike models, Munjal added, “We have consolidated our system suppliers and are moving towards Alber Neodrives for the A2B Obree and Orsted models, which are used by only a handful of brands. This year we will also launch A2B models that have the

R ib L o c k

Hero Eco’s new 2015 e-bike models will have the Alber Neodrives and the Conti/Brose mid-motor.

Photo Hero Eco

Conti/Brose mid-motor which is new in the market and whose performance is excellent in comparison to competitors.” Last year A2B launched the ‘Made in Germany’ Obree and Orsted. In the US market Hero Eco presented the Ferber & Galvani 350W and the Kuo+ worldwide. For 2015, new models of the Entz and Entz deluxe are planned. Last year Hero Eco founded its own subsidiary in Australia and is looking for partners in other markets.

“We are in particular interested in setting up joint ventures in Canada and in some Asian countries,” said Munjal as he believes that Hero Eco should aggressively market its brands.

ts for B uildin g th e b est par r n ature … your bike is in ou

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18

January/February 2015 BIKE europe

MARKET REPORT INDIA After failed MIFA takeover now focussing on buying strong European brand and production in Asia

Hero Cycles Explores Options LUDHIANA, India – After the failed MIFA takeover Hero Cycles continues to explore its options in Europe through different routes, amongst which mergers, acquisitions and strategic alliances will continue to be open. India’s biggest bike maker is determined to grow its existing exports channel to Europe, but wants to integrate it in an international business model.

This unit is dedicated to provide premium experience to its dealers and customers in terms of product and services. The company has a premium plant for alloy bikes there that became operational early 2013. The plant has the capacity to manufacture 500,000 units annually and targets the domestic as well as international markets. The Hero Cycles Ltd. mother plant is based at Ludhiana in the Punjab.

Process re-engineering Satnam Singh

“H

ero’s primary focus would be to enter into a strategic tie-up with companies that have a strong front end distribution platform as we have a strong back end to support the supply chain from India,” said Pankaj Munjal, Managing Director, Hero Cycles Ltd. To route bicycles to Europe Hero remains open to buy-out a strong brand name and by setting-up a production facility in Asia. MD Munjal, “We have a two-pronged strategy for our international business including Europe; building brands on the front-end and highquality manufacturing with cost-leadership at the back-end. If these two align with the brand buy-out and production in low-cost least developed categorized (LDC) Asian countries, we are open to explore this.”

Pankaj Munjal, Managing Director, Hero Cycles, ‘We have a two-pronged strategy for our international business including Europe.’

Photo Satnam Singh

Meanwhile on the home front, Hero Cycles’ new production facility in Bihar started operations last October. The company’s third bicycle plant has started to supply the key markets of India’s eastern region. “The initial production is kept to 1,300 units per day, which is going to be scaled up to 50% of its installed capacity by next month, and 80% by mid-year. This is a well planned out gradual ramp up to ensure quality, costs and delivery.”

Premium experience MD Munjal further clarified that Hero Cycles has no plans for more production facilities in its domestic market in the future. “There may be auxiliary units, but there are no plans for another full-scale facility.” Currently Hero has a manufacturing facility in Ghaziabad (near Delhi in Uttar Pradesh) where high priced bikes are being produced to cater to mass premium segments of the Indian bicycle market.

Hero Cycles remains focused on improving production standards. There are plans for process re-engineering and productivity improvement by leveraging scales as well as plant layouts. This may result in capacity expansion of certain components. However, overall production capacity is expected to remain at 20,000 units per day.

Hero manufactured 5.4 million bicycles in 2014. The company has sold 5.33 million bicycles in the domestic market in 2013 and exported some 100,000 units.

Hero Cycle Ltd. is part of the Hero Group; the world’s biggest manufacturer of two-wheelers.

Turnover stood at over USD 4 billion and the Group’s 2013-2014 financial report states that by 2020 Hero Group aims at producing 12 million bicycles and scooters at 20 plants which are to be sold in over 50 countries across the world.

Avon Cycles Raises Capacity for Home Market LUDHIANA, India – “We are building a new facility in Bihar and the new plant is likely to be operational in the first half of 2015. The plant will start production in the first quarter of the new financial year 2015-16 that starts in April,” said Onkar Singh, Managing Director, Avon Cycles Ltd.

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he company has finished construction of around 80 percent of the Bihar plant building. Avon Cycles raised its production capacity to 2.5 million units annually at its mother plant in Ludhiana in 2012.

Avon Cycles’ second plant would serve the vast

Indian markets of Bihar and Jharkhand and the bicycle maker is investing around USD 2 million (INR 12 crore) in the plant. On the 2.5 acre grounds the facility will produce around 15,000 bicycles per month, it is located in the city called Hajipur, which is about 10 km from the State capital Patna. The company builds the new factory there in order to cut transport costs of sending the complete bicycles from the Ludhiana plant. Avon supplies around 10,000 units to the state each month.

New equipment Meanwhile, Avon is further upgrading the Ludhiana plant by installing new robotic wheel

truing machines as well as a new electrostatic paint plant. Also the building is further expanded to add to work space.

2.18 million bikes Avon Cycles registered a turnover of INR 6.35 billion (USD 103 mn) and manufactured 2.18 million bikes in 2014, which is marginally lower compared to the same period in 2013. Avon is one of India’s key bike exporters to Africa and shipped 150,000 bicycles to this continent.

The company fared better in exports in 2014 as it exported some 140,000 units at a value of INR 510.12 million (FOB USD 8.10 million) in 2013.

Onkar Singh, Managing Director, Avon Cycles Ltd. Photo Avon Cycles

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INTERNATIONAL WHEEL MAGAZINE

HMTODAY PUBLISHED BY HOLLAND MECHANICS, PURMEREND, THE NETHERLANDS

SEASON 2015 VOLUME 18 V I S I T U S AT TA I P E I C Y C L E HALL 4F BOOTH L1227 W W W. H O L L A N D M E C H A N I C S . C O M

Lean Wheelbuilding Production flexibility trend to gain competitive advantage

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he bicycle industry is witnessing a growing trend toward lean manufacturing. Driven by social and economic factors, bicycle factories and wheel builders are looking for lean production facilities.

Interesting is to study the reason why companies are going lean and to discover that the lean trend is not only picking up in the traditional “expensive” countries, but also in Asia.

Increasingly, shipping products around the world is not the most efficient way to use limited resources. From an economic point of view – as a result of rising labour costs in once low-cost countries and drastically increasing transportation fees, production in the Far East outweighs local manufacturing in Europe or North America less and less.

Traditionally European and US OEM’s accepted long delivery times, inflexible deliveries resulting is high stock cost. But with the raise of manufactory cost in Asia, this is getting out of balance.

For some Asian companies it will be possible to further increase productivity to offset cost inflation, especially companies that could further automate assembly lines in their Asian operations. For example, in our sector of wheeland bicycle assembly, many companies’ production setup is still heavily labour-intensive or only partially automated.

In their home markets in Europe or the United States, facilities are equipped with state-of-the-art assembly lines.

However, facing high cost inflation in Asia, many companies have decided to gradually shift their production setup to a higher degree of automation. This is not only a defensive strategy to deal with labour costs, but also a proactive action to manage high labour turnover in Asia, and deal with shortages of skilled workers and operators.

Over the last years Holland Mechanics invested heavily in improving the “Wall To Wall” concept. Extending it from a fully flexible wheel production line to a fully flexible high-

volume production line. Especially in a situation where manufacturers are producing close the market the series of bicycles to be produced are getting smaller and smaller, yet the volume to be produced doesn’t change.

This makes any change over in the assembly process, an unnecessary loss of production time, and the more work to change over the bigger the loss.

Driven by social and economic factors, bicycle factories and wheel builders are looking for lean production facilities.

With increasing labour cost and the diminishing availability of workers for “low end” jobs we see many companies look at Automatic Hub Filling again. This is not a new development of Holland Mechanics, but the imminent changes of labour and increasing production cost finds new markets for this machine. This is one of the Holland Mechanics products that is very interesting for manufacturers that are facing increasing labour cost and shortage of available labour. The Hub Filling machine is an easy change over process to make manual hub filling an automated and lean process.

With the introduction of the Quattro Robot a few years ago we again set the trend to more lean manufactory. The Quattro allows the lacing machine operator the build lower tensioned wheels making the work more comfortable, and increasing the output. The Quattro will then tighten the wheel in a much better and consistent way compared to previous introduced systems, delivering a high quality wheel to the robot, that now only has to true the wheel.

Working this way we get consistent outputs of 40 seconds

V I S I T U S AT TA I P EI CY CL E – HALL 4 F B O O T H L1227

per wheel, with a high spoke tension tolerance. Several customers already have taken their steps into the “Wall To Wall” lean manufactory, among them are companies like Kross (Poland), Baltic Vairas (Lithuania) and Houston (Brazil).

The Quattro Robot communicates with the trueing robot and both machines can share operations. In case the robot is still trueing a wheel the Quattro will take over trueing actions from the trueing robot. With an interactive production line like this we automatically reach a balance in the wheel assembly making long tracks in-between the machines unnecessary.

All these steps in the assembly of the wheel make it a controlled and validated process. And that is a guarantee label for wheels produced this way.

WA LL TO W A L L W H E E L BUI L DI NG 1 Hub Filling The HFS Hub Filling Machine is in operation in many bicycle factories in the world. Not only high labour countries but also Brazil, Poland, Hungary, Turkey, China, etc. Small and medium sized companies use the HFS for the labour intensive manual hub lacing because one operator can handle three machines.

With 4 spoke inserters we fully automatic ďŹ ll a 36 spoke hub in 28 seconds!

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2 Easy Lacing In the Flexible Mass production line the lacing machines do not need to deliver tight wheels. Because of the separate 4 Hand Quad Tightening machine the lacing process is easier because of looser lacing. As a result of this it is easier for the operator to lace wheels and he can reach a higher output. This new set-up creates a balanced process whereby the operator will be more productive while his work is less strenuous.

HMTODAY

SEASON 2015 VOLUME 18

FL E X I B LE M A S S P R O D UCTI ON L I NE 3 Tightening & Trueing The flexible tightening machine the Robot Quattro in combination with a QUATTRO READY Trueing Robot. In this way Holland Mechanics created a “Flexible Mass Production Line” where quality, flexibility and speed are combined. In other words: we divided the production process of building wheels into three steps.

• The Lacing Machine in step 1 sets the spokes and nipples in the rim loosely. This means we need less time so increased output.

• In step 2 the Robot Quattro – 4 hands tightening robot – gives the wheel an equal tension spread. This is done by 4 hands whereby two are placed at the top and two at the bottom. Working this way the wheels are perfectly prepared with good spoke tension before it will be finally trued. With an easy automatic change over a maximum flexibility is guaranteed.

• The final step 3 is the Trueing Robot which trues and finishes the wheel.

In the situation below the Robot Quattro creates a continuous flow with an optimal balance between the three wheel assembly stages.

The advantage is that this modular production line saves floor space, gives extreme flexibility, high wheelquality and creates more output with less machines and operators.

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4 Tape & Tyre The Quattro Line can be extended with the Tape & Tyre Solution. This makes the line complete for full wheel assembly (inclusive tyre fitting). The Holland Mechanics Tape & Tyre solution is adding value to your wheel process. First of all by optimizing your stock because of the “one size fits all” principle. One stock position or to say 1 reel of 2000 meter tape in stock that fits all rims with a Quality Cotton Tape. Less flats with precise rimtape fitting. The Automatic Rimtaper is one of Holland Mechanics most successful innovation of the last years.

The final station of “wall to wall wheelbuilding” is Tyre Fitting. With the so-called “Guarded Tyre Mounting”, or to say the 4-point rim clamping technology whereby the hub is always floating you do not need to re-true or check the wheel after fitting the tyre.

In the HM process the Trueing Robot is responsible for the trueing tolerances, the HM Guarded Tyre Mounting guarantees that your wheel stays in-true.

product update product update product update HMTODAY

40% higher output after investing in robot quattro Baltik Vairas CEO Dirk Zwick states:

“Best Wheelbuilding Innovation of last 10 Years” 2 upper hands

2 lower hands

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altik Vairas in Siauliai, Lithuania stated that the efficiency of the wheel building line increased after investing in a Holland Mechanics Robot QUATTRO. After a challenging year Baltik Vairas will put focus again on operational improvements. The company recognized clear efficiency results in the wheel shop after implementing the newly developed Holland Mechanics

Robot Quattro into the wheel manufacturing lines a few years ago. This statement is based on measuring output results of the wheel line with and without QUATTRO’S. Next to this the Robot Quattro also has the advantage that it is saving floor space in combination with higher output with less machines and operators.

“This is the best wheel building innovation of the last 10 years”, according to Dirk Jens Zwick, General Manager

Quattro Ready

Fat Bike Trend

of Baltik Vairas. “We created up to 40% higher output within the wheelbuilding process and this has a significant impact on the overall efficiency of building wheels”. Next to this the quality increased because of accurate tensioning because the tension is distributed equally with 4 hands. Baltik Vairas will further invest in their manufacturing competences through innovative technologies.

quattro ready

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e can imagine that not every customer will invest in a complete Quattro line right from the start. It has always been possible to extend Holland Mechanics wheel building lines. With the introduction of the Quattro Robot it is important that machines can actually communicate with each other to share wheel- and process data. From this season onwards we will mark all the machines as QUATTRO READY as indication that in the future a Quattro Robot can be implemented in the line to increase the output.

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olland Mechanics supports innovation. For a couple of years Fat Bikes are gaining popularity, especially in the United States. Originally this design was meant for snow cycling, but the rugged look of a bicycle with a 100mm Fat Tyre is getting more popular in other segments too.

This year Holland Mechanics has upgraded their latest CN In-Line Lacing Machine and their Robot OT for the manufacturing of the popular Snow Tyre wheels. As the trend of large tyres in combination with extra wide rims is popular in the States, the first “FAT-RIM” HM machines will be delivered next month to the USA. The wheelbuilding automation of Fat Rims can help to bring the Fat Bikes to the masses.

Holland Mechanics Rim Manufacturing Equipment

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ost people know Holland Mechanics from its state of the art wheelbuilding machines.

What not many people know is that we also offer a large range of rim manufacturing machines.

From entry level standard to state-of-the-art fully automated rim manufacturing machines. Companies like Rodi, Exal, Schürmann, Büchel, Remerx and Alex are all using the Holland Mechanics Rim Manufacturing equipment.

SEASON 2015 VOLUME 18

This year Holland Mechanics has introduced their newest development in this segment, an automatic SawPin machine whereby the two operations of Rim Sawing and Pin Insertion are combined in one machine. With automatic loading and unloading this is the final step to make a fully automated the rim manufacturing process possible.

VIS IT US AT TAIPEI CYCLE – H ALL 4 F BOOTH L1227

BIKE europe January/February 2015

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MARKET REPORT JAPAN E-bikes take Nippon’s production value to historical high level

Japan 2014: Units Down, Value Up TOKYO, Japan – When looking at Japan’s January to September 2014 bicycle industry results there are no significant changes. Unit-wise bicycle imports and home production are flat compared with the previous year’s Q1 to Q3 sales. However there is good news to report on the value of the bicycle production.

Jo Beckendorff

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n the first three quarters of 2014 Japan’s bicycle production reached 714,290 units, a small decrease of 0.1 percent compared with 2013. The Japan Bicycle Promotion Institute (JBPI) divides this into three categories.

These are the “light cycles” – the cheap Japanese version of Europe’s city bike -, the “electric power assist bicycles” (e-bikes) and the remaining “miscellaneous”.

Home production: All about e-bikes With a total of 373,612 units (+12.1%) the ebikes are by far the largest category of Japan’s production, followed by light cycles with 240,498 units (-13.1%) and others with 100,180 units (-4.5%). At 52.3%, more than half of Japan’s bicycle production includes e-bikes.

The other two categories are light cycles (33.7%) and others/miscellaneous (14%). Together the total production represents a value of JP¥35.4 billion (€ 251.1 million). According to the Japan External Trade Organization (JET-

Japan’s bicycle exports are based on used bicycle donations As noted in the previous years Japanese bicycle export figures are not included in the statistics. They are nearly 100% based on used bicycles being collected by the police and exported as donations to developing countries.

In 2014 Japan exported 2.42 million units. The average FOB (free on board) price was JP¥1,514 (€ 10,71). In 2014 the average FOB unit price even increased – compared to 2013 – with 11.4 percent. (JB)

RO) this is “the highest value ever generated in history during a nine month period”. Last year the total value of Japan’s e-bike production increased by 18.7% to JP¥79.1 million while the category light cycles dropped by 11.2% to 13.5% and others went up by 5.2% to 7.4%. The growing importance of e-bike production in Japan came together with an increase in average price by 5.8% to JP¥74,971 (€ 530,76). In the category of light cycles, the average price went up by 2.3% to JP¥19,867 (€ 140,80) and the category others by 10.2 percent to JP¥26,153 (€ 185,40). The overall average price increased by 12.6% resulting in an all-time high price of JP¥49,568 (€ 351,25) per bicycle. According to JETRO the importance of the e-bike, value and unit wise, continues to increase though the growth pace slowed down a little bit in Q4. As well, the average price decreased last September compared with the same month in 2013.

Imports Just like the production Japan’s import of bicycles has also been flat between January and September 2014. A total volume of 6.16 million units were shipped to the country. (-0.1%). According to JBPI this is “the second lowest import level since 2001”. While the average price of the imported bikes was flat, the total amount spent on CIF (cost, insurance and freight) increased by 7.5%. The average CIF price went up by 7.6% up to JP¥10,618 (€ 75,27). This extremely low average price compared with the US and European market is the result of the enormous number of cheap China-made cycles flooding the Japanese market. Between January and September a total of 5.97 million bicycles or 96.9% of Japan’s total bicycle imports were shipped from China to Japan. The average CIF price of a China made bicycle is JP¥9,528 (€ 67,45). If you might think it can’t be lower, note that this value increased by 8.5% compared with 2013. Japan’s number two supplier is Taiwan, exporting 179,263 units (+4.3%) while the remaining 12,132 units come from

Mini Cycles and e-bikes are the rising stars on Japan’s bicycle market 2014.

the rest of the world, including Europe. Last year Taiwan maintained its 2.9% market share on the Japanese bicycle market. The CIF price of Taiwan-made bikes also remained more or less the same at JP¥42,514 (€ 300,93). The other countries, responsible for just 0.2% of Japan’s imports, saw the CIF price grow by 24.1% to JP¥74,890 (€ 530,12).

Imports and domestic market Most remarkable is the continuing growth of a category that isn’t popular in the Western world, called mini-cycles. These smallwheeled, easy to store bicycles can fit on any balcony, and are easy to carry. In the first three

Japan’s E-bike Production January to September 2014-2013 01-09-2014

Unit production Value production (JPY million) Average sales price (JPY)

01-09-2013

+/-

333,121* + 12.2 %

28,010

23,603* + 18.7 % 71,854*

quarters of 2014 sales of these bikes experienced a 65.8% increase. Due to the fact that Japan’s export figures rely on used bicycle exports to developing countries (see box) the domestic unit volume as mentioned is based only on production plus import units (without subtracting export units – see chart). According to JBPI the market volume of 6.81 million bicycles – divided into 714,290 produced and 6.16 million imported units between January to September 2014 – is the lowest in nine years. Therefore the headline of our last year’s Japan market report is still applicable: “Better less, but better”. This situation hasn’t changed in 2014.

Bicycle Market Japan January to September 2014-2013

373,612

74,971**

Photo Jo Beckendorff

01-09-2014

01-09-2013

+/- %

714,290

714,851*

- 0.1 %

Import

6,156,819

6,164,050

- 0.1 %

Total market

6,871,109 6,878,901**

- 0.1 %

Production

+ 5.8 %

* 01-09-2013 figure is revised; ** = 530.76 euro (based on a January exchange rate of JPY 100 = 0.71 euro). Source: METI, JETRO

* 01-09-2013 figure is revised; ** revised due to revised home production figure. Source: METI, MOF, JETRO

January/February 2015 BIKE europe

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BUSINESS

MIFA: New Owner & New Name SANGERHAUSEN, Germany – MIFA insolvency administrator Lucas Flöther is preparing the former German bicycle producer Mitteldeutsche Fahrradwerke AG for the future under new leadership. This includes delisting the company from the Frankfurt Stock Exchange.

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id December MIFA was acquired by the Von Nathusius family. This family of entrepreneurs is also sole shareholder of German car component maker IFA Rotorion Holding GmbH. According to a press release, Flöther asked for a delisting of MIFA from both the Prime Standard as well as the General Standard markets of the Frankfurt Stock Exchange. MIFA’s delisting from Frankfurt Stock Exchange should be effective as of 29 July 2015. MIFA was listed since 2004.

The Sangerhausen-based company is the last public-traded German bicycle producer. Competitor Derby Cycle was de-listed end of 2012 after the acquisition by Pon Holdings. MIFA’s rate went down-hill to a 52 week low of 0.13 euro after the company asked for insolvency in September 2014. They somehow recovered and are now, at the time of writing, on 0.24 Euro; a 96% drop compared with last year’s 52 week high of 6.88 euro. Besides MIFA’s delisting, Lucas Flöther also cancelled the existing MIFA bond listed at the Entry Standard market of the Frankfurt Stock Exchange. Termination will take effect as of February 26, 2015. According to the MIFA report on DGAP.de it is planned to include this bond on the “quotation board” of the open market at the Frankfurt Stock Exchange. Trading should start on 27 February 2015.

Industry associations COLIBI & COLIPED merged into:

Confederation of European Bicycle Industry BRUSSELS, Belgium – The European industry associations representing bike makers and parts producers – COLIBI and COLIPED – have merged in order to represent the sector’s interests united and louder in Brussels. The merger resulted in a new name: CONEBI, that stands for ‘Confederation of the European Bicycle Industry’.

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he Association of the European TwoWheeler Parts’ and Accessories’ Industry (COLIPED), established in 1960, and the Association of the European Bicycle Industry (COLIBI), established in 1973, decided to merge into one entity and become CONEBI at the association’s last General Assembly. This took place in Brussels on November 19, 2014.

Beginning of January 2015 CONEBI’s association articles were published in the Annexes to the Belgian Official Journal. With that CONEBI is officially registered as a non-profit organisation active for bicycle advocacy.

The industry associations of 14 European countries are member of CONEBI. Individual companies are not eligible for membership.

They are member or can become a member of the national associations, and have through their representatives a voice in CONEBI. In a press release on the merger it is said that, “CONEBI will combine the efforts of COLIPED and COLIBI over the past decades in order to have maximum strength in representing its

New name The restart of MIFA includes a new name for the company formerly known as Mitteldeutsche Fahrradwerke AG. According to a report on the German news website MDR the bicycle factory will now be called: Mifa-BikeGesellschaft mbH. The new owner Heinrich von Nathusius will take over daily business at MIFA. According to MDR Von Nathusius said that, “The factory is currently at full production. Up to the end of May we expect a production of 400,000 units, about three quarter of the annual production. We expect to generate a turnover of 100 million euro in 2015 and a small profit.”

CONEBI takes over activities like organising the joint European pavilion at the Taipei Cycle Show. At the 2015 Photo Bike Europe edition of this show, taking place from 18 to 21 March, CONEBI is the biggest exhibitor.

members’ interests at European level. CONEBI inherits COLIPED and COLIBI’s remarkable results, among which the separate code in the combined nomenclature for EPACs and the adoption by the European Commission of the EPACs and Speed EPACs regulations. The new association will keep on maintaining regular

The Association of the European Two-Wheeler Parts’ and Accessories’ Industry (COLIPED), established in 1960, and the Association of the European Bicycle Industry (COLIBI), established in 1973, have merged in CONEBI. Photo CONEBI

contacts with European policy makers and authorities, as well as with other associations that pursue common objectives; the European standardization body CEN; industry and mobility experts and the international press.

CONEBI’s aim will be the growth of the bicycle, EPAC and P&A industries and of the Cycling Culture in Europe.”

Of course CONEBI will take-over all other activities undertaken by COLIBI and COLIPED in the past. Like the composition of the European Bicycle Industry & Market Profile and organizing the joint European pavilion at the Taipei International Cycle Show. At the 2015 edition of this show, taking place from 18 to 21 March, CONEBI is the biggest exhibitor.

The representatives of the national industry associations have unanimously elected a CONEBI Board of Directors that consists of: René Takens (CEO Accell Group NV) as President; Erhard Buechel, (MD of Büchel & Co. Fahrzeugteilefabrik KG) as Vice President; Massimo Panzeri (MD of Atala Spa) as Vice President and Sacha Boedijn (Secretary General of Dutch RAI Association) as Treasurer.

CONEBI’s Secretary General is Greet Engelen while the recently appointed Manuel Marsilio is Secretary General assistant.

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BIKE europe January/February 2015

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INTERVIEW President René Takens on the new Confederation of the European Bicycle Industry (CONEBI):

Representing Industry in ‘Neutral’ Dossiers APELDOORN, the Netherlands – He is in the business now for some 16 years and has held board positions at industry clubs and associations. In particular as he knows what they can bring. Over the years the interest groups landscape in Europe changed drastically as now COLIBI and COLIPED merge into CONEBI. President René Takens explains what the new Confederation stands for.

Jack Oortwijn

COLIBI and COLIPED are already there for decades. Why now this merger?

“All the years that the two associations are working together started a natural convergence process. That’s also got to do with the fact that a lot of representatives that take part in the meetings of the two associations are the same. Over the last years this cumulated in having a joint meeting where the views on the merger into one organization developed. And at the last meeting we decided to go for one association with new articles and name.”

Has it been considered to stop with the two “Comités de Liason” which names gave the associations a rather dusty image?

“No, stopping wasn’t considered as the two associations have a meaningful and good right to exist within the range of interest groups in Europe. Moreover, the COLIBI and COLIPED names are still there in the Confederation of the European Bicycle Industry – CONEBI – logo.”

Please explain CONEBI’s role and function.

“CONEBI is the European Confederation of industry associations of currently 14 EU countries. Every country has one associationrepresentative in CONEBI’s Board. Individual companies cannot be a CONEBI member; only industry associations for manufacturers, importers of bicycles, parts and accessories can. Individual companies are member or can become member of the national industry associations.

That CONEBI at this moment unites industry associations from 14 EU countries has to do with the fact that not every country has such an organization, like in smaller countries.”

Viewing all European interest groups like EBMA, ECF – Cycling Industry Club and WFSGI; what’s CONEBI’s role?

“One thing is sure; CONEBI’s role is different from those organizations. In particular as EBMA, the European Bicycle Manufacturers’ Association that has companies as direct members, is handling anti-dumping cases as well as other EU trade legislation in the scope of fair trade. ECF, the European Cyclists Federation, is representing the end-users. Part of ECF is the Cycling Industry Club which was founded only a few years ago but has developed into a powerful lobby group. The Cycling Industry Club lobbies Brussels for subsidies and for creating the right circumstances for getting more people on bikes more often. And the World Federation for the Sporting Goods Industry – WFSGI is handling contacts with world-organizations like the UCI, United Nations, WHO and WTO.

‘Defending the bike sector’s interests at EU institutions through one, united voice is what CONEBI is all about.’

For explaining more on CONEBI’s role I have to emphasize that we are handling only neutral issues. Neutral in the sense that such dossiers don’t have opposing interests like with antidumping cases. Here European manufacturers and European importers have opposing interests. So, such dossiers are not touched by CONEBI. Most of the dossiers we are consulted on by the EU institutions are on regulations. Like for instance the CEN safety standards for bicycles; the type approval regulations for speed pedelecs that come into force in 2017 was a big dossier handled by COLIBI-COLIPED. The

Accell Group CEO and CONEBI President René Takens, “Anti-dumping cases are not touched by CONEBI.” Photo: Fotopersbureau Dijkstra

same goes for WEEE for e-bike battery recycling or for REACH on chemicals in products.

All these dossiers are important agenda items which earlier have been discussed at country level; at the associations by their members which are the companies operating in the sector. Next to all this CONEBI compiles so-called Position Papers when asked by the European Commission.”

can be re-elected or new Board members can be elected. CONEBI is based in Brussels. The secretariat there is manned by General Secretary Greet Engelen and her new assistant Manuel Marsilio.”

How will CONEBI operate? Where is the secretariat based? Who’s in the Board and what’s fixed on Board changes?

“Yes, organizing the Joint European pavilion is an important activity for COLIPED and now for CONEBI. Important as it presents the European industry professionally, but also as it brings in much needed funding. Evenly important for CONEBI is compiling the European Bicycle Industry & Market Profile. This is an economic study that presents an overview of the European bicycle industry’s activities, market data and highlights the bicycle activity in the member countries. Highly important for profiling the sector in Brussels. Together with representing and defending the bike industry’s interests at the EU institutions through one, united voice is what CONEBI is all about.”

“CONEBI’s Board of 4 consists of 3 people from the industry and 1 from the associations. It’s a neutral Board that has no voting rights and is to chair the meetings. The chairmanship or Presidency as we call it is alternately taken up by someone from the COLIBI or from the COLIPED ranks. I am currently President; Erhard Buechel, of Büchel & Co. Fahrzeugteilefabrik is Vice President; Massimo Panzeri of Atala is the other Vice President and Sacha Boedijn of Dutch RAI is CONEBI’s Treasurer.

The Board is appointed for a 2-year term and

An important function of COLIPED has been for years organizing the Joint European Booths at the Taipei Cycle Show. Is this to stay?

Taipei Cycle Show Ð Nangang Exhibition Hall L0727a

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January/February 2015 BIKE europe

LAWS & REGULATIONS Proposed harmonisation detailed as law on motor, throttle control, weight, age limits scrapped

UK Harmonises Electric Bike Law with Europe LONDON, UK – The UK has finally laid out in detail its proposed harmonisation legislation to bring its e-bike legislation in line with Europe. The Electrically Assisted Pedal Cycles (Amendment) Regulations 2015 updates the UK’s original 1983 legislation, effectively scrapping the country’s unique stance on e-bike legislation.

Richard Peace

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November 2014 consultation document (available at the Department for Transport- DfT) outlined how the UK’s own antiquated rules on motor power, throttle use, bike weight and rider age will be consigned to the legislative scrapheap. The country will fall into line with EU regulation 168/2013, so only pedelecs with a maximum speed of 25 km/h and 250 watts power will remain exempt from type approval and throttle only machines, also known as ‘twist and gos’ will need type (or individual) approval.

Confused mix of UK and EU law In reality the situation on the ground reflected the confused mix of UK and EU law that confounded many in the industry. ‘Twist and go’ machines have been available for many years in the UK, with the Department for Transport insisting, on paper at least, that the 1983 regulations applied until harmonised, thus legal-

ising machines that in the rest of Europe required type approval (despite the fact that the UK actually had a legal obligation to harmonise

by November 9, 2003). Whilst this opened up the UK market to throttle only machines (and those with throttle only and pedelec switches), the UK regulations also imposed particular restrictions not found in EU directive 2002/24/ EC and its successor regulation 168/2013.

First was a stipulation that the bicycle’s motor must provide no more than 200 watts continuous power (250 watts for tricycles and tandems). In practice many continental European spec machines rated at 250W were imported and the DfT admitted off the record that such machines, if legal in all other respects, would not be considered as falling outside the original 1983 UK regulations for law enforcement purposes.

Somewhat more of a practical problem was posed by a 40 kg weight limit (60 kg for electric assist tandems and tricycles) contained in the 1983 regulations. The tricycle weight limit ef-

UK’s e-bike industry collective opinion bemoans, almost unanimously, the lack of the new harmonising regulation proposals to include a UK ‘S-class’ or speed pedelec.

Photo Bosch

fectively destroyed promising trails by the UK’s Royal Mail for electric-assist tricycle delivery using heavy duty machines designed especially for the trials by a UK company.

The UK consultation also brings into line its Pedal Cycles (Construction and Use) Regulations 1983 with the relevant Euro-standards.

The Pedal Cycles (Construction and Use) Regulations include provisions specific to electric bikes on the brakes that must be fitted and on what information must be marked on the vehicle. The proposed amendments for fitted brakes substitute the latest appropriate standard (BS EN ISO 4210-2:2014). Similarly, the vehicle marking requirements are aligned with the recommendations in the current standards BS-EN 15194:2009, thus removing the need for additional information on EAPCs used on roads in GB. The consultation stresses that the new harmonised regulations will not be retrospective so that vehicles already purchased

by UK consumers and conforming with the current requirements (i.e. ‘twist and goes’) may continue to be used without change.

End of Throttle Power?

The DfT document hints at some favourable treatment of ‘twist and go’ machines, quoting them as having ‘particular benefits for elderly and disabled users’. However, it has so far failed to state what the UK governments intentions are regarding type approval; with the scrapping of UK laws in January 2016 EU regulation 168/2013 will apply and ‘twist and go’ machines will need type approval, being defined under article 4 as L1e-A type vehicles (“powered cycles”).

According to David Miall, a Director of UKbased Freego Wisper Group, there is still a lack of clarity about the position of ‘twist and gos; “We feel strongly that the benefits of throttle only power should continue to be made available to the UK and that the government should include specific provisions in the new legislation making twist and gos available as “red-tape free” electric bikes at the point of sale, whilst specifying what new type approval standards we, as manufacturers need to meet.

The lack of specific guidance and the long term

time frames the Department for Transport are talking about mean a huge potential setback for the electric bike industry in the UK.”

Why no Speed Pedelecs for UK? UK electric bike industry collective opinion bemoans, almost unanimously, the lack of the new harmonising regulation proposals to include a UK ‘S-class’ or speed pedelec along with allied road traffic law requirements at a lower level than mopeds and motorcycles (currently fully enclosed helmet and quite large registration vehicle plates); a ‘red tape lite’ approach has been followed by Germany, Switzerland and more recently the Netherlands but again the UK government is still sitting on the fence as regards future legislation.

Indeed, s-pedelecs are widely available in the UK, but often marketed as “not for use on public roads” or “for off-road use only”. There is certainly a strong argument that specific legalisation on speedier machines would help solve the difficulties posed by those dealers who choose to sail close to the wrong side of the law with the use of dubious caveats.

Of course, there will still be time for swift action to amend and add to the proposed UK legislation after the country’s general election of 6th May, so the result will be keenly awaited by the electric bike industry.

A Weight off their Shoulders? Good News for Cargobikes and Pedicabs Could the end of the UK’s electricassist weight caps open up a new field of urban transport for commercial operators? Friedel Schroder, of Londonbased Bugbugs says, “We operated electric assist trikes. They needed to be classed as a low powered mopeds and tested accordingly. At an average added cost of GBP 1,300 (1,740 euro) plus we chose not to pursue the idea until the UK rules change.”

BIKE europe January/February 2015

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BUSINESS “We are a service company”

Mach-1 Delivers Within 7 Days All Over Europe MARCLOPT, France – The construction of a 3,500 square meter logistic center next door to the company’s spoke and rim factory, which was finalized in mid-2013, had a major impact on Mach-1’s market position.

Based in the centrally located St Etienne region of France, it can offer its customers maximum service throughout Europe.

Jan-Willem van Schaik

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he new logistics center, fully operational since July 2013, allows Mach-1 to operate like the car industry, with customers sending in firm orders. These orders go into production at once, while the produced rims go into storage. Here they are ready for delivery according to the customer’s weekly demand, as agreed upon within a certain timeframe.

“Depending on the travel distance and the arrangements we have made with the customer we can deliver within three to seven days all over Europe,” explains François Joly of Mach1. “Our ‘On Demand’ order system has many advantages for our customers as well as ourselves. The customer gets a great delivery service while we get a better insight in our customer’s demand and allow us to improve the efficiency of the supply chain. The new logistics center has a storage capacity of no less than 500,000 rims, necessary to offer the industry ‘just in time deliveries’ of Mach-1’s wide variety of profiles.”

Today the company has no less than 30 different profiles for more than 200 references in stock. The next-door factory employs some 75 people and produces about 2.5 to 3 million rims annually, either Mach-1 branded of private labelled. “The option to deliver private labelled rims, in any colour, small series and within 3-7 days as well, is one of our competitive edges,” explains François Joly. “The industry requires this flexibility and thanks to our logistic center we offer them this service.

In today’s OEM business it is not about ordering wheel components, it’s about selecting the right supplier who will make sure that in the end the bicycle assembly becomes a smooth process.”

This flexibility in product range and deliveries is reflected in the rim factory as well. The 6,000 square meters dedicated to production has a

highly efficient layout with the machinery optimally located for efficiency and workflow. It starts with delivery of the raw materials, in this case long sections of single and double wall profiles, to bending and sawing the profiles, joining the pins or the sleeves, packaging, labeling, and finally the storage on the carriages for transportation to the logistics center next door. Most of the rim production is done on machinery developed and made by the company’s subsidiary in Epagny. The production of the spokes is even more efficient and handled by a handful of people. The highly automated spoke production department has a daily output of 1.5 million spokes daily.

Photos Bike Europe

Innovations At the product level Mach-1 puts all its effort regarding rim development in further reducing the thickness of the side wall. “The reduction of the side wall thickness allows you to increase the height of the profile without adding more weight,” explains François Joly. “That’s what the market is heading for. We do not favour welding as the process does deform the aluminium too much in our opinion. To save weight we are more and more tending toward the sleeve joint for the middle to high-end market. One of Mach-1’s recent innovations was the “Easy Tubeless Ready” feature on the enduro, all mountain and marathon Klixx rim, as well as the enduro, all mountain, marathon and cross country Traxx. It allows for easy mounting as it can be fitted with a standard foot pump unlike the common tubeless systems needing a compressor. Mach-1 Wheel Components is located in the middle of what once was the heart of the French bicycle industry in St. Etienne. In 1992 the Chanaux family entered the bicycle industry with the acquisition of a factory for bicycle hubs, one for spokes as well as nipples, and a company called CPM based in Annecy, which was involved in the wheel building machinery business. In 1994, the hub

Mach-1 Machines Expanding Outside Europe The Mach-1 Group currently operates two locations in France. The Marclopt facility houses the rim and spoke production as well as the company’s logistic center. Some 200 km to the east in Epagny, near the city of Annecy, Mach-1’s product line of rim and wheelbuilding machinery is made. The company has 40 years’ experience in developing and manufacturing machines to automate the assembly of cycle wheels, motorcycle wheels, and alloy rim production for bicycles. Today, some 85% of Mach-1 Machines’ turnover is generated by the export market.

Mach-1’s logistics center has a storage capacity of no less than 900,000 rims.

Most of Mach-1 rims are manufactured on Mach-1 machines.

business was discontinued due to growing competition from Shimano and Mach-1 started the rim production from scratch in an allnew factory in Marclopt. In 2013 Mach-1 was sold to a group of investors called One-Stone group and Robert Marchel started as General

Manager of the Group. According to Mach-1 these investors have a long-term strategy and want to maintain local and high-tech production in the region. Today Mach-1 Wheel Components generates and annual turnover of € 16 million of which 80% is export-related.

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January/February 2015 BIKE europe

BUSINESS Huge potential for projects involving (electric) cycling

Low Carbon Technology Gets EU Funding Priority BRUSSELS, Belgium – Combatting climate change, sustainable development, improvement of quality of life become ever more important central principles in European policies. This trend is also reflected in European funding programmes and creates huge potential for projects involving (electric) cycling.

Annick Roetinck

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he European Union’s regional policy is an investment policy, which financially supports job creation, competitiveness, economic growth, improved quality of life and sustainable development. These investments are meant to help deliver the European 2020 strategy. Europe’s regional policy is also meant to reduce the economic, social and territorial disparities between Europe’s regions.

352 billion euro budget For this policy, the European Union has set aside a total budget of almost € 352 billion for the period 2014-2020. This budget is distributed over 5 structural and investment funds: European Regional Development Fund (ERDF), European Social Fund (ESF), Cohesion Fund (CF), European Agricultural Fund for Rural Development (EAFRD) and European Maritime & Fisheries Fund (EMFF). With that, the European Commission has set out a number of priority issues to be tackled through the investments. One of these priorities is low-carbon technology. This opens considerable perspectives for the funding of projects aimed at en-

Proposal for Testing Use of Electric Bikes for Commuting At least one proposal is currently being prepared. The University of Leuven – Campus Gent wants to test the use of electric bicycles for commuting to harbour areas. In addition they want to research how to make the electric bike more user-friendly and how to increase the social acceptance of the electric bike concept. The Leuven University is looking for partners.

couraging (electric) cycle usage. Every member state has to negotiate a partnership agreement on how to use funding from these structural and investment funds between 2014 and 2020.

In addition, each member state has to develop an operational programme in which it defines among other things how it will develop cooperation with other (neighbouring) countries and regions. You can find further details on the operational programme of your country here: http://bit.ly/1JMMWns. As part of the regional policy, member states are encouraged to cooperate either crossborder, transnational or interregional. All territorial cooperation programmes are listed here: http://www.interact-eu.net/etc/ etc_2007_13/4/2.

European territorial cooperation as a whole has a € 10.2 billion budget of which € 359 million has been allocated to interregional cooperation under Interreg V.

Cooperation in regions of 4 countries At the end of last year, the 2014 – 2020 programme for one of these interregional cooperation schemes was launched at a 2 days’ meeting in Lille. 2 Seas is aimed at stimulating growth and improving cohesion through cooperation in the English, Dutch, Belgian and French regions around the Channel and the North Sea. As explained, one of the priorities is “low carbon technology” for which the following objective has been adopted: “Projects should be aimed at increasing the adoption of low-carbon technologies and applications by public/private organisations and citizens.”

One of the major changes compared to the previous programme is that projects will have to be much more result driven and will have to produce the required outputs. As for lowcarbon technologies, the expected results are emission reduction, exploitation of the potential of new/renewable technologies, reinforcement of public acceptance and reduction of carbon dependency. Also, project proposals

For this policy, the EU has set aside a total budget of almost € 352 billion. It creates huge potential for projects Photo Bike Europe involving (electric) cycling.

will be assessed on the basis of their long-term potential. The project activities should continue beyond the project period. Furthermore, the programme favours projects that include SMEs and that build on specific potential related to coastal/maritime location of the regions.

Consortiums should consist of at least two partners from two different member states and should have at least one English partner. The total budget available for the “low carbon technology” priority is € 51 million, which is 20% of the complete 2Seas programme budget. The programme finances 60% of project budgets, whilst partners are expected to finance 40% themselves. There is no maximum or minimum budget per project set but proposals should be reasonable. The project duration should be 3 to 4 years and may involve local, regional and national authorities, universities and research centres, companies, in particular SMEs developing low carbon technologies, non-for-profit organisations, etc.

The application has been changed with a view to simplifying and making the procedure more effective. An intermediary step has been introduced in the form of the Concept Note. This

is a brief description of the project proposal.

The note will be assessed on the basis of strategic criteria and operational criteria. If there are strategic shortcomings, the proposal will be rejected. If the shortcomings are operational, a new full application may be submitted when the second call for Concept Notes is issued. The first call for Concept Notes has been launched on 6 January with a submission deadline of 16 February. A second Concept Note call is planned for mid-November.

The 2Seas website is http://www.interreg4a2mers.eu/2014-2020. In the cooperation corner you can look for project ideas or for potential partners, or you can register your own proposal or your interest to participate in a project.

Under the previous 2Seas programme, only one cycling project was implemented, Bike Friendly Cities, with a budget of € 6.3 million.

Given the “low carbon technology” priority, one would expect more (electric) cycling related projects under the new programme. Interested companies have to take into account that the application procedures require a lot of time and effort.

BIKE europe January/February 2015

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BUSINESS Changes at European and International operations of listed Canadian bike company

Dorel Sports Sets Out Future Course in Europe FREIBURG IM BREISGAU, Germany – At the start of 2015 Dorel Industries announced a name change for its recreational (including bikes) segment to Dorel Sports. The company also announced a strategy-change with an all-out focus on innovation, but in Europe stopped its cooperation with R&D specialist Denk Engineering. This raises questions.

Jo Beckendorff

C

ycling Sports Group (CSG) – ‘mother’ of Dorel Sports’ premium bicycle brands – decided to cooperate with the prestigious German bicycle R&D company Denk Engineering GmbH in 2009. This led to the foundation of the European CSG R&D center in Freiburg im Breisgau. In December 2014 CSG announced the end of its collaboration with Denk Engineering. Will this have a direct impact on Dorel Sports’ premium bike business and the closure of its European R&D center? Dorel Sports manages the entire bicycle business of listed Dorel Industries Inc including Pacific Cycle Group (targeting the mass merchant market) and Cycling Sports Group (targeting the IBD market).

Changing working profile When Denk Engineering started to work for CSG it was said that Peter Denk would act as Technical Chief Manager for the four CSG brands; Cannondale, GT, Schwinn and Mongoose. According to a Dorel press release Denk and his team were hired, “To develop innovative high-performance products.” This also brought about the creation of a European R&D center as the home of product managers, designers and engineers and was also, according to CSG, “A clear statement for Europe.”

This statement still holds true as the company’s R&D for urban and e-bikes is based in Freiburg under the leadership of Markus Spenninger. Since July 2014 the former BMW and Specialized engineer manages the urban (e-)bikes projects of all CSG brands. Product managers for other categories concentrate in Freiburg on their specific platforms and are working in close cooperation with their counterparts in the US and Asia.

Over the years the role of Peter Denk and his team at CSG-Germany and the European R&D center somehow changed; from Technical Chief Manager to more project-related work.

And in 2014 Denk Engineering moved out of the Freiburg CSG office back into its own former office. Soon after the end of the CSG-Denk cooperation at the end of 2014 Specialized an-

‘Expanding Brand Portfolio across Channels and Geographies’ At the start of 2015 Peter Woods, President and CEO, said that the change of name for Dorel Industries recreational segment from Recreational/Leisure to Dorel Sports was, “To better represent the business as it expands the brand portfolio across channels and geographies. We have good momentum in our business as we enter 2015 and are excited about the upcoming year.”

nounced to have started cooperation with the prestigious German bicycle R&D company.

Smooth project transfer Both CSG R&D Europe and Denk Engineering assure that their cooperation ended on good terms. Peter Denk’s longtime Denk Engineering companion Thomas Fuderer says, “Otherwise we would not be able to finish the projects we are still working on with CSG.” Philipp Martin from CSG says that Cannondale’s ‘Overmountain’ product series was developed together with Denk Engineering in Freiburg and that a final project will be finished even after the official end of their cooperation.

“Peter Denk and his team have done a great job. Nevertheless after the end of our cooperation there will be no structural change at CSG R&D Europe. Denk Engineering’s departure will not hinder our continued growth.”

Currently the European R&D center of Cycling Sports Group in Freiburg occupies a 200 square meter workshop on the ground floor and a 200 square meter office and show room on the first floor. Philipp Martin, CSG marketing manager for Austria, Germany and Switzerland says, “When we started here we had a workforce of seven to eight people, excluding the Denk Engineering team. In the next months we will rent an additional 200 square meters. This will allow us to present workshops for dealers here.”

Next to the CSG R&D center in Germany the US based bike company has its longtime European HQ in Oldenzaal, the Netherlands. Here some assembly takes place as well as warehousing and administration of CSG European operations. Marketing and technical services for the Cycling Sports Group take place from the Basel, Switzerland office. From April 1, 2015 on this branch will be renamed to CSG Customer Service Europe, but the entire European marketing division will continue its work from this office.

Extensive portfolio Currently Dorel Sports’ portfolio holds 13 bicycle and apparel & accessory brand names (see also www.dorelsports.com). They belong to two subsidiaries; Pacific Cycle Group and Cycling Sports Group. These brands are: Cannondale, Caloi, Charge, Fabric, GT, Guru, Instep, Iron Horse, Kid Trax, Mongoose, Schwinn, Sombrio and Sugoi.

CSG Europe concentrates on five premium brands: Cannondale, Fabric, GT, Sombrio and Sugoi. These are distributed through the named three existing European offices. Dorel stopped the distribution of Mongoose and Schwinn bikes in Europe two years ago. There is one more CSG brand in Europe, but this one is operating independently in the UK and is named Charge Bikes. The apparel and accessory product ranges being sold under the CSG roof will be expanded. But as Philipp Martin explains, “In the very near future brands like Cannondale will concentrate on a smaller ap-

CSG Engineering Manager Markus Spenninger (left) and Senior E-Bike Product Manager Marcel Geurts at the European R&D center of Cannondale Sports Group in Freiburg, Germany, which is about to expand.

Photo Jo Beckendorff

parel and accessory range as they don’t need to have seven bib shorts. Therefore the Sugoi and Sombrio product ranges will be expanded.

Sugoi offers more technical-sportive bikewear

while Sombrio has more lifestyle bikewear.

And Fabric will become our P&A brand with an expanded range of products like saddles, grips and handlebar tapes.”

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January/February 2015 BIKE europe

BUSINESS Key success factor for JD Group in competitive European e-bike industry

TranzX Focuses on Service at New HQ BAD NAUHEIM, Germany – The new, ultramodern TranzX HQ and service center situated on the outskirts of Frankfurt, at the heart of the booming German e-bike market, is very busy on a daily basis. With a focus on providing the best possible service, the center stands as a representation of this commitment.

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isitors are not only greeted by the professional staff, but also by the proud product displays that occupy the entrance hall, showcasing the company’s innovative history. It is through this service concept that TranzX, as a leading maker of e-bike drive systems, has the fourth-largest market share in Germany.

In an ever growing market, efficient and effective customer service is a primary consideration for e-bike manufacturers. As one of the leading manufacturers of drive systems for electric bicycles, TranzX has expanded this capability with their new European HQ. It provides a faster and more active after-sales service support system for the company’s OEM customers. As demand for first rate service increases, the new European HQ continues to cater more closely to the needs of its customers. An additional service point has recently been opened in Benelux, expanding the locations in which TranzX can provide direct

manufacturer and dealer service. With a total floor space of over 3,000 m2, the service center is centrally located in Germany. This location takes advantage of the continued growth of the e-bike market, with the various European markets practically on its doorstep, whilst also being at the center of the biggest e-bike market. The warehouse and the modern workshop alone account for almost half of the total area of the building, which ensures there is ample storage space and work space for the skilled technicians. With more than 300 different spare parts and components stocked, the rapid processing of repairs is possible. In addition, a simplified order processing system allows orders to be handled more quickly and efficiently. In order to stay successful and take full advantage of the surge in demand for e-bikes, service is playing a much more prominent role.

George Pascal, MD of JD Europe, recognized the importance of a premium customer service as a key element for success from the outset. Using service-based business models from other industries, he fully embraced service as the core component in setting up the European operations for the Taiwanese e-bike manufacturer. Service in the bike business has become much more complex and entails far more than simply sending out replacement parts. It is about company and customer inter-

One of the major aspects of the new TranzX service center is rapidity of service. In particular as customers equate more rapid repair and reduced downtime with higher quality.

Photo TranzX

action, meeting expectations as well as dealing with complex logistics, operations and IT systems. Bikes that are driven by chips need more than a screwdriver and some lubricating oil.

This is why TranzX has highly-trained technicians and service support staff that know the ins and outs of their products. And one of the

major aspects of the service center is rapidity of service. In particular as customers equate more rapid repair and reduced downtime with higher quality. All in all excellent customer service adds value to the product and the brand, building enduring relationships and customer satisfaction.

BIKE europe January/February 2014

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SHOW PREVIEW TAIPEI CYCLE 28th edition of Taipei International Cycle Show holds again over 1,100 exhibitors

Taipei Cycle: Biggest in Bikes in Asia TAICHUNG, Taiwan – The Taipei International Cycle Show is also in 2015 the biggest in bikes in Asia. 1,104 exhibitors are lined-up for the 28th edition of the Taipei International Cycle Show which will take place from March 18 to 21, 2015 at the Nangang Exhibition Hall as well as in the TWTC Exhibition Hall 1.

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aipei Cycle 2015 will again be held in conjunction with the Taipei Int’l Sporting Goods Show (TaiSPO) 2015. Altogether both shows are expected to attract over 10,000 foreign buyers. 17% of all buyers visited both shows in 2014; sourcing for all sports related products varying from cycling and e-bikes, fitness, outdoor, and other sporting goods equipment conveniently in one trip.

As said 1,104 exhibitors are to participate in this year’s show; slightly under the number of last year that stood at 1,111 exhibitors. The show stands at a gross floor space of 58,000m2.

Among the exhibitors are once again all major international brands like Giant, Merida, Accell Group, Shimano and SRAM. 60 start-up companies involved in the development of innovating parts and accessories will join Taipei Cycle 2015. They will exhibit on the second floor of TWTC Hall 1 where also TaiSPO is held.

One aspect of this year’s Taipei Cycle looks to be quite different compared to the ones held

in previous years. That has to do with the business outlook that has made a turn-around. In particular the European bike market is reviving. And as this is Taiwan’s biggest export destination for the country’s bicycle industry, the turnaround after years of stagnant or declining sales is expected to have a big impact at this year’s show atmosphere. The 2015 show will again feature the Taipei Cycle d&I Awards. At the beginning of this month the Taiwan External Trade Development Council and the Taiwan Bicycle Association, organizers of the 2015 Taipei Cycle d&i awards, announced 57 winning entries from 10 countries, including 5 gold awards and 1 ‘gold award-young enterprise’, new for 2015.

The international judging panel selected winners out of 209 entries from 15 countries for design and innovation in cycling. The number of international entries grew 37% compared with 2014, showing that the competition has drawn global attention as the platform to present what’s upcoming for the cycling industry.

Awards will be given at the 2015 Taipei Cycle Pre-Show Press Conference on March 17th, and winning entries will be on display at the 2015 Taipei Cycle Show in March on the 1st floor of the Taipei World Trade Center Nangang Exhibition Hall. Taipei Cycle 2015 will also feature a new Japan pavilion next to side events like the 19th International Bicycle De-

Taipei Cycle 2015 will again be held in conjunction with the Taipei Int’l Sporting Goods Show (TaiSPO) 2015.

Altogether both shows are expected to attract over 10,000 foreign buyers.

Photo Bike Europe

sign Competition; Tour de Taiwan, Outdoor Demo and the LEV test-Drive.

Bike Europe at Taipei Cycle Bike Europe and the dealer magazine for the Netherlands and Belgium, Tweewieler (both trade journals published by Vakmedianet),

will be at the 28th Taipei Cycle, booth number P0009, on the 4th floor. International visitors are welcomed to pick up their complimentary copy of the Bike Europe’s January/February 2015 edition. The editorial team is looking forward to meeting you and talk about the latest trends in bicycles and the business of cycling.

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January/February 2015 BIKE europe

BUSINESS

Belgium Bike Industry Partners In Wind Tunnel Test

Kevin Mayne, Cycling Industry Club

Major Cities Cycling Ambitions

Trento Robotics created a full scale dummy of a professional Photo Flanders’ Bike Valley cyclist.

PAAL, Belgium – The Flemish bicycle companies BioRacer, Ridley and Lazer Sport cooperate in a so called “Euregional Bike Valley” project to develop a new measurement system based on laser technology and to study the newest aerodynamic product improvements.

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n a joint project with Trento Robotics from the Netherlands, ILA from Germany and Voxdale from Belgium the three companies had as a first step a full-scale dummy of a professional cyclist developed. Trento Robotics created that dummy. This is a first in cycling history. “The biggest advantage is that every improvement can be customized and fine-tuned,” said Bert Celis, coordinator Flanders’ Bike Valley.

Aerodynamics and cycling technology “The know-how of Flemish Companies regarding aerodynamics and cycling technol-

www.rst.com.tw PhotoCredit:Jan Mocnak

ogy is a worldwide leading edge, but was rather divided until recently,” continued Bert Celis. “Each company had their own knowhow on their product range but never shared this knowledge. This has changed now. Together with the experts of Euregional partners Trento Robotics and ILA this resulted in the ideal mix for innovations.” The innovative measurement system and the customized 3D dummy (in time trial position) of the cyclist are leading edge technologies for sports aerodynamics. In the near future the objective is to create more 3D dummies which exactly fit the dimensions of professionals and semi-professionals in order to adjust clothing, helmets and bikes. It will open possibilities for innovations, also for smaller companies. The first positive result of the cooperation means a major leap in the realization of the cycling wind tunnel, which will be launched by the end of 2015 in Flanders’ Bike Valley in Belgium.

ECF believes news from Europe's cities shows exciting breakthroughs for cycling as a solution to city challenges. In Paris there is an air-quality crisis, in Brussels the challenge is congestion while London knows that its transport systems cannot cope with predicted urban growth. These are just some of the most high profile recent announcements that point to a very positive outlook for cycling advocacy.

Mayor Anne Hidalgo wants non-residents' private cars banned from central Paris.

"In the four central arrondissements, apart from bikes, buses and taxis, the only vehicles allowed will be residents' cars, delivery vehicles and emergency vehicles," Hidalgo said. She also wants to double the number of cycle lanes and introduce e-bike hire by 2020 as part of a €100 million bike plan. Madrid has made a similar bold step. Cars will only come into the city centre with a pre-booked parking place and plans are in place for 25% of the city to be pedestrianized. Cycling has been at very low levels but is growing already in the city centre. Brussels Mobility Minister Pascal Smet has supported cycling since he

was the host of Velo-city in 2009. Back on the post he announced a big increase in cycling investment. ECF's Belgium advocacy members inspired newly elected Brussels ministers on a ride round the city during Mobility Week. Finally London has just announced that in the final quarter of 2014 cycling was up another 10%.

The Mayor also announced that the long awaited cross London cycling highways will get over £900 million.

K.Mayne@ecf.com

Engineered and designed in Germany

Alligator

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good is not good enough for us www.alligatorcables.com AlligatorCables NO.46 Tung Koo Rd. Homei, ChangHua, Taiwan • Tel: +886-4-7357739 ext: 227 • Fax: +886-4-7353665 E-mail: info@alligatorcables.com • Facebook: www.facebook.com/AlligatorCables

January/February 2015 BIKE europe

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PRODUCT PREMIERES TAIPEI CYCLE

Herrmans Launches ‘Wing-Technology’ Rim Tapes Based upon their 55 years’ experience of producing rim tapes Herrmans has developed the new ‘Wing technology (W-Tech)’. The new rim tape profile is very flexible and makes it easier to mount the rim tape on the rim, so that it is cantered and smoothly follows the rim profile.

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t the same time the rim tape does not lose its critical rigidness, giving a high pressure resistance. High pressure tires demand strong rim tapes to protect the inner tubes.

Rim tapes that are too stiff will not follow the Ushaped rim profile, making a correct assembly of the rim tape and tire more difficult. With rim tapes that are too loose the pressure will push down the rim tape into the spoke holes, reducing the protective life span of the rim tape.

High pressure protection The W-Tech rim tapes have good flexibility in their cross section, for easy correct mounting and at the same time retain rigidness in the centre, for high-pressure protection. The Wing

technology rim tapes are offered in two materials. HPP is made out of polyurethane, is extremely light and can withstand a max pressure of 8 bars or 116 psi. HPU is based upon polypropylene and can withstand a max pressure of 10 bars or 145 psi. The rim tapes have upgraded pinch resistance for long riding sessions. The rim tapes are available with valve holes for rims with the American valve (Schrader valve) 9 mm or the Presta valve 7 mm. W-Tech rim tape comes in 559/26” and 622/28” and widths: 16, 18, 20 and 22 mm.

Herrmans ‘Wing technology (W-Tech)’ offers flexibility for easier mounting without losing rigidity, giving high pressure resistance.

Photo Herrmans

Caoton Switches to Production of High-End Carbon Bike Parts

China’s Biggest Tire Maker Focuses on OEM

The company Caoton started in the 1990s as a badminton and tennis racket maker specialised in the use of carbon.

The company is called Hong Zhou Rubber Group Co. Ltd, but is better known as ZC Rubber.

Since that time Coaton Sporting Goods Co. changed course and is now focusing more on high-end carbon bike components. Its latest clincher and tubular carbon wheelsets come with patented 6 pawl drive hubs. As well as wheelsets Coaton’s current product portfolio encompasses a wide spectrum of carbon fibre bike components including handlebars, flat bars, rise bars, aero bars, drop bars, front forks, seat posts, stems, and bottle cages, as well as sporting equipment.

They are the number one tire maker in China and among the top ten for the world’s biggest makers. The company is now also focusing on the bicycle tire market and in particular OEMs. ZC Rubber’s bicycle tires carry the brand name Chaoyang. The key feature of ZC Rubber’s Chaoyang bicycle tires offerings is the huge range and lots of options for the industry. The company has everything from tires for fatbikes (up to 4.9 inch!), 29-ers, and road bikes (with silica compound) to downhill tires and of

Caotons latest clincher and tubular carbon wheelsets come with patented 6 pawl drive hubs.

The USP of ZC Rubber’s Chaoyang bicycle tires is its huge offering; more options for the industry.

Photos Bike Europe

course all categories between these extremes including City, Trekking, and e-bike tires.

E-Ram: World’s Smallest E-Bike Drive System Joy Industrial Co. Ltd will be launching the world’s smallest centre motor at this year’s Taipei Cycle Show. The new drive system is called Dienatronic E-Ram. The company claims that it is the smallest and lightest e-bike centre motor that can be mounted on a standard BSA bottom bracket.

The E-Ram centre motor weighs only 1.5 kgs while its dimensions are close to that of a regular chainwheel. It’s a 250 Watt motor suited for regular 25 km/h e-bikes. Maximum torque output stands at 60 Nm, which is controlled by a torque sensor. The Dienatronic E-Ram comes with a 50V – 7.0 Ah Li-Ion battery.

E-Ram: Smallest and lightest e-bike centre motor mountable on a standard BSA bottom bracket.

New Super B Precision Tools At Taipei Cycle 2015 Super B Precision Tools Co. Ltd will present two new products. One is for inspecting the handlebar and stem for proper assembly.

The two inspections can be made with Super B Precision Tools’ specially-developed laser. The other new product to be launched at Taipei Cycle this year is a tension-meter for spokes. It is easy to operate and easy to check whether the right spoke tension is reached or if more adjustments have to be made. The Super B tension-meter for spokes comes in a version for professionals and a version for consumers.

Super B Precision Tools’ new tension-meter for spokes.

BIKE europe January/February 2015

31

PRODUCT PREMIERES TAIPEI CYCLE

Suspension Specialist DNM Presents Burner Shock

News Disc Brakes from Bengal

The newest rear shock from DNM is called Burner-RCP3.

Brake maker Bengal will launch two new disc brake systems at Taipei Cycle 2015.

DNM’s new BurnerRCP3 rear shock.

The 210mm shock weighs 380 grams and offers 4-system damping with rebound, compression, preload and pressure adjustment. The BurnerRCP3 is for AM, FR, and DH riding. The new rear shock comes with a dark hard-anodized AL-7075 shock body and is available in five different sizes. Suspension specialist DNM will show its complete range at Taipei Cycle 2015.

Tires for Fatties from GMD At this year’s Taipei Cycle Show Fat Bikes will be all over the place. And that means that components for this relatively new category will also be widespread.

This includes the latest tire from Gumander Industrial Co. Ltd. The tires from this Taiwan based manufacturer come under the brand name GMD. New in the 2015 line-up from GMD is the Powwow G810; a tire specially developed for Fat Bikes. The GMD Powwow comes in wire and foldable versions. Both versions have a black/blackskin construction.

The GMD Powwow comes in one size: 26x4.0 or 559 in ETRTO. With such generous dimensions the big Powwow will underline what Fatties are – really Fat!

GMD tires shows off new models for Fatties.

At the French pavilion of this year’s Taipei Cycle Show Zéfal will show its new Deflector FM20 mudguard. It is developed in collaboration with the professional team United Ride.

The Deflector FM20 is a front mudguard adapted for DH, Enduro or XC use.

Photo Zéfal

Cell Phone Holders from Victor Hardware Adjustable cell phone holders in various colours are now available from Victor Hardware Co. Ltd. The holders fit all cell phones; from somewhat outdated Blackberrys to the newest iPhones.

Just by sliding the holding grips to a wider or smaller position every cell phone can be fitted.

The base of the cell phone holders can come in various colours from white to black and even polka-dotted. The Victor cell phone holders are easy to mount on every type of handlebar.

The cell phone holders are packaged for selling in shop rack-systems. Victor Hardware Co. Ltd is a Taiwan based parts maker.

Bengal’s new ARES 5 hydraulic disc brake targets XC, Trail, AM DH, and Freeride bikes.

Four New Saddles with Gel Technology from Aifeit The official company name is Foshan Aifeit Bicycle Accessory Co., Ltd. However, the products from this specialized saddle manufacturer are sold under the Aifeit brand name.

Zéfal Introducing Deflector FM20 Mudguard

The Deflector FM20 is a front mudguard adapted for DH, Enduro, or XC use. “It is discrete and efficient,” says Zéfal. The mudguard is made in techno-polymer resin. It holds securely to the bike under extreme conditions and can be customized with 3 available stickers. Fabien Cousinié, Team manager United Ride says, “We have developed with Zéfal the best mudguard in terms of protection and weight.”

The hydraulic operated disc brakes are named ARES 3 and ARES 5. Both have alloy forged master cylinders and callipers. ARES 3 is for MTBs, ARES 5 targets XC, Trail, AM, DH, and Freeride bikes. ARES 5 offers more stopping power as well as ‘EZ-adjust’ hose connectors, adjustable up to 180 degrees. ARES 5 also offers a ‘window’ for easy inspection of pad-wear.

Adjustable cell phone holders in various colours come from Victor Hardware Co. Ltd.

At this year’s Taipei Cycle Show the company will present, among others, four new saddles, all with gel technology. In addition to this newest comfort feature the saddles have a special back frame that offers the cyclist more comfort. The new Aifeit saddle types come in the company’s offering in kid saddles as well as for City Bike models. The new models are available in various sizes and a wide range for covers.

New City Bike saddles with Gel from Aifeit.

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January/February 2015 BIKE europe

PRODUCT PREMIERES TAIPEI CYCLE

Jetset Focuses on Rims for Fatties

Latest from Selle Royal; ‘Viento’ Saddles

Taiwan based rim and wheelset maker Jetset is launching super wide rims for Fat Bike wheels.

‘Viento’ is Italian for wind and also is the name for the new line from renowned Italian saddle maker Selle Royal. The Viento saddles are developed for everyday use with a Classic design.

The company added two rim types to its portfolio; an 82 mm wide and a 100 mm wide model. Both are pinned rims for 32, 36, or 64 spokes. The 100 mm rims are available in 26”/559x93 and the 82 mm rim in 26”/559x76.

The rims can have regular spoke holes, round ones, or square cut-outs. The weight of the two rim types ranges from 1.35 kg to 940 g.

Super wide rims for Fat Bike wheels from Jetset.

The anatomical central hole gives the cyclist a maximum level of comfort while the black soft touch cover with stitched lateral cordura detail increases wear resistance. Viento saddles are available in Athletic Unisex, Moderate Man and Women, and Relaxed unisex models.

‘Viento’ is Selle Royal’s new saddle line.

Alligator Upgrades Level Inner Cables First Bicycle Components Presents with 31 Strands and Special Treatment Semi-Oval Cranksets Alligator Cables is taking the next step in its product development of inner cables.

The company upgraded the level of its inner cables from the traditional 19 wire inner cable to 31 strands.

Alligator does that without making the cables thicker. The outside diameter of the cable housing stays exactly the same. For the 31 strand inner cables Alligator developed a special treatment called Superior Shine. It’s a non-toxic coating that triples the lifetime of inner cables and reduces friction. The new inner cables and the coating come with an upgraded 11-speed housing offering fast and exact shifting.

Oval cranksets have been on the market for some time. However, the way Taiwan’s First Bicycle Components targets this new trend is really new.

Alligator cables is taking the next step in its product development of inner cables.

The company offers semi-oval cranksets meaning that the large oval chainring allows for speed in road races while the smaller regular round chainring offers more power for uphill rides. The newly designed semi-oval cranksets from First Bicycle Components come in three AL 7075 versions; OS with BCD 130 mm and 53 x 39 chainrings; OS1 with BCD 110 mm and 50x34 chainrings as well as OD with BCD 144 mm and one 50 teeth chainring.

The way Taiwan’s First Bicycle Components targets the new oval crankset trend is really new.

Gearbox Maker Pinion Looking for Partners and Focuses on E-Bikes From the company’s start in 2012, gearbox maker Pinion has been gradually expanding its range. It now includes 18 speed as well as 12 and 9 speed types.

Pinion’s newest are the P1.9 XR (Extended Ratio) and the P1.9CR (Compact Ratio). The 9-speed XR type offers a total gear ratio of 568% and is (along with MTB and Touring use) suited for (high speed) e-bikes fitted with hub motors. Also the P1.9 Compact Ratio is used for e-bikes, but targeted more toward the 25 km/h limit models. This Pinion gearbox offers a 364% overall gear ratio. Pinion is currently used by over 50 OEM brands.

Pinion newest gearboxes are 9-speed suited for speed pedelecs and regular 25 km/h e-bikes.

Sunny Wheel Targets Fixies with Colourful Components Today’s fixie trend didn’t escape the attention of Sunny Wheel. The Taiwan based grip and fender maker added special fixie parts to its 2015 line-up.

Such as their colourful chain clips that covers a fixie’s chain without making extra noise. They even prolong the lifespan of the chain, as the chain will not get dirty. Chain clips are a typical AM product. Also for fixies but suited for City/ Trekking and MTB models too are the grips, available in a wide spectrum of colours, sizes, and forms. Another trend targeted is Fat Bikes for which Sunny Wheel is offering a range of seatpost clamped fenders.

Colourful fixie parts from Sunny Wheel.

BIKE europe January/February 2015

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PRODUCT PREMIERES TAIPEI CYCLE

Clarks M2 – Changing the Rules of the Game

Thun Responds to FATbike Trend with New BB-Set FATjive

Clarks Cycle Systems, a leading supplier of components and accessories to the bicycle industry worldwide, with a diverse range of aftermarket and OE products, is continually striving to bring new and innovative products onto the market.

Thun’s most successful product the Jive 3.0 has been updated to meet the booming market for fatbikes. The result is the new FATjive. “Particularly, the classic bbsquare can revive in the main stream price segments,” says Thun’s chief R&D engineer Martin Schneider. “The FATjive will offer compatibility to countless chain wheels and crank sets as well as its unparalleled durability and reliability.”

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t the March 2015 Tapei Bike show booth M0104- M0106, Clarks will be exhibiting new products that include 2 new brake systems, an e-bike range, new rotors, gear, and brake hybrid cable kits, coloured braided cable kits, inline cable adjusters, a new range of lock-on and ergonomic grips, and handlebar tape. They will be demonstrating their 2015 flagship brake system, the M2, which has received great reviews in the UK consumer marketplace. The M2, in development for about 18 months, has evolved into a great value hydraulic brake system. The sculptured lever body and single piece caliper punches well above its weight in both appearance and performance. Supplied with long lasting sintered pads as standard, and featuring inside edge hose connection the M2 provides predictable, powerful braking that is the envy of many other systems on the market.

Alongside the M2 the CMD-17R, Clarks 2nd road specific disc brake system, will be at the show. In common with its hydraulic cousin, the CMD-17R is a powerful, lightweight brake that offers the benefits of backplate adjustment in a great value for money package. At Taipei

The M2, in development for around 18 months, has evolved into a great value hydraulic brake system.

Photo Clarks Cycle Systems

Cycle Clarks will be launching their innovative hybrid brake and gear cables providing all the benefits of frictionless operation that comes with a SIS housing, but with the greater flexibility for improved routing that is more typical of a traditional cable with spiral housing. The Clarks comprehensive offering of rotors has been expanded with the addition of the CFR07FA floating rotor range. Constructed from 7075-grade alloy, extremely lightweight and strong, the rotor exhibits exceptional heat coping properties with the benefit of being only 86 grams in weight.

A

ccording to Thun’s Production-Manager Behadil Halilovic the company is happy to provide a high-performance system for a new market that is expected to evolve from a niche status to a fully-grown market segment. Also, he expresses his hope that Thun’s new product development will motivate further manufacturers to relocate their production back to Europe in order to form an even more effective supply-chain.

Component manufacturer Thun is one of the few companies in the bicycle industry that is still family-owned and managed ever since its founding. The company specializes in bbcartridges for city, trekking, children, and mountain bikes. With 50 employees at its location in the Germany town of Ennepetal and a production capacity of up to 1 million bbsets per month, Thun supplies European and global bicycle manufacturers. The company is a European market leader within its price segment, with a recommended retail price be-

Thun’s new FATjive.

tween € 150 and € 800 and has a market share of approximately 60%. Thun’s success has a solid foundation: quality, process optimization, teamwork, innovation, and sustainability, not to mention decades of experience in the bicycle industry. Thun invests around 10% of its annual turnover into new product and process innovation, out of which 5-10 turn out to be patented products and/or processes each year. Related to the size of the workforce, this rate of innovation is many times higher than common; especially regarding the industry’s big names.

WHERE PASSION MEETS THE GROUND

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Photo Thun

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34

January/February 2015 BIKE europe

SHOW NEWS

ExpoBici Padua 2015: The Show(s) Must Go On?

Taichung BW Moves To October

PADUA, Italy - They call it the "War of the cycling shows" a present day "Montagues and Capulets" story in Italy. One contender is in Verona, the other in Padua, and the bike is their love object.

TAICHUNG, Taiwan – The organizers of the Taichung Bike Week have moved the show dates for next year's event two week earlier than the 2014 edition. The 2015 show is scheduled from October 20-23.

U

ntil last year, ExpoBici, organized by PadovaFiere SpA, was the sole exhibition on the Italian cycling scene and the second most important European bike show, thanks to its 550 exhibitors and 60,000 visitors. However recently, Veronafiere, just 80 kilometres west of Padua, presented the "CosmoBike" show with the clear aim of contending the primacy (and attracting the exhibitors) of the event in Padua. In response, ExpoBici introduced its 2015 edition at a press conference.

The event should have allayed the doubts of the 550 exhibitors; whether or not to exhibit at the Padua show this year? But whether ExpoBici succeeded in that effort can only be answered by the number of application forms for a booth.

Former pro rider Moreno Argentin has been named by ExpoBici to lead the organizing committee. The important guidelines behind his efforts for 2015: consolidation of the event's leadership at the national level and an increased attention to foreign markets.

The new CosmoBike show by Veronafiere includes the exhibition of bicycles, accessories, clothing, and test days in the Torricelle Hills, CosmoBike will also launch CosmoBike Mo-

bility European Exhibition of Urban Cycling, with four days dedicated to cycling as a means of mobility. The CosmoBike Mobility project is developed together with bikeitalia.it. Urban cycle manufacturers can learn more about best practices for design, implementation, and communication of new bike-friendly cities worldwide. Presentations of infrastructure solutions for bike-sized cities, will be flanked by training workshops and debates targeting sector professionals, municipal technical facilities, decision makers, and cycling activists.

Editors Jan-Willem van Schaik janwillemvanschaik@vakmedianet.nl Phone: +31 20 515 9865

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It selects, classifies and analyses. It brings all those working in the trade in contact with each other. A professional journal from Reed Business Media is the meeting place for professionals.

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BIKE europe Trade Journal for the Bicycle, E-Bike & Scooter Market Bike Europe will be published 10 times in 2015 © 2015 Vakmedianet PO Box 4 7000 BA Doetinchem The Netherlands Phone: +31 314 349 522 Fax: +31 314 342 408 marianvanderzalm@vakmedianet.nl Publisher Ruud Bakker Chief editor Jack Oortwijn jackoortwijn@vakmedianet.nl Phone: +31 20 515 9870

Hedwig Berendsen - Hooman HedwigBerendsen@vakmedianet.nl Phone: +31 314 349919 Annemarie Visser AnnemarieVisser@vakmedianet.nl Phone: +31 314 349846 Final editor Hugo Claver Design Eight Media Correspondents Belgium/EC: Annick Roetynck, Canada: John Palmer, Czech Republic: Milan Motl, Finland: Heikki Kuva, France: Isabelle Lebœuf, German speaking countries: Jo Beckendorff, Italy: German Eslava, Poland: Marek Utkin, Portugal: Alexandre Silva, Russia: Andrei Khorkov, Slovenia, Baltic States: Grega Stopar, South East Asia: Satnam Singh, Spain: Ivan Perez Cudrada, Switzerland: Peter Hummel, Taiwan: David Frazier, United Kingdom: Paul N. Blezard, United States: Gary Boulanger, South Africa: Ron Thompson, Electric vehicles: Susanne Brüsch For all your advertising requirements contact: Sales B2B Phone: +31 314 34 99 68 salesint@reedbusiness.nl www.adverterenbijreedbusiness.nl

March 6-9 GoExpo Helsinki, Finland 6-8

North American Handmade Bicycle Show Louisville, Kentucky, USA

s with this year's event, the Taichung Bike Week 2015 will take place in the Evergreen Hotel, Tempus Hotel & Splendor Hotel in Taichung City. For several years the Taichung Bike Week changed its dates step-by-step. Originally the event took place in December, but to accommodate mainly US product managers who said the event was too late in the season, organizer Steve Fenton and his team moved the show schedule to earlier in the year.

6-8

Toronto Int'l Bicycle Show Toronto, Canada

13-15

Copenhagen Bike Show Copenhagen, Denmark

14-16

Bikeexpo Kiev, Ukraine

18-21

Taipei Int'l Cycle Show Taipei, Taiwan

Waiting list

18-21

Inabike Jakarta, Indonesia

21-22

VeloBerlin Berlin, Germany

27-29

China North Int'l Bicycle and E-bike Exhibition Tianjin, China

A Urban cycling will be one of the themes of CosmoBike in Verona.

Photo Bike Europe

International Shows

The 2014 edition grew again, with a 27% increase on 2013's 315 exhibitors. Despite additional space in the Splendor hotel some 50 companies were left on the waiting list. An estimated 4,000 international and domestic product managers and buyers visited the hotel show event. Taichung Bike Week's continued growth is now, more than ever before, urging its organizers to look for ways to take this show to the next level. There's talk from the Taichung City government of developing an international exhibition center at the old Taichung airport.

Representatives per country: Taiwan & China Infotrade Media Co. Ltd. Peter Chu Phone: +886 (4) 23132189 # 101, 203 Fax: +886 (4) 23133239 service@trade-eye.com India Kapshan Solutions Kapil Suri Phone: +91 (11) 2 614 4712 Fax +91 (11) 2 467 9912 kapshan@hotmail.com All advertising copy should be sent to: Karin Benning Reed Business Media P.O. Box 4, 7000 BA Doetinchem The Netherlands Phone: +31 314 349926 traffic.transport@reedbusiness.nl Marketing Bart Voording Subscription rates www.bike-eu.com/subscribe Or contact our Customer Service, tel. +31 (314) 35 83 59, customerservice@reedbusiness.nl

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BIKE europe January/February 2015

35

PEOPLE The Supervisory Board of Accell Group intends to appoint Jeroen Both to the Board of Directors as Chief Supply Chain Officer (CSCO). He will be specifically responsible for purchasing, planning and logistics. "In recent years, Accell Group has grown considerably and bolstered the management of the organisation in a number of ways in the past year, to make more effective use of the synergies of scale the group as a whole affords, and to make our business processes smarter and more efficient," said Accell Group's CEO René Takens.

"Jeroen Both will be specifically responsible for the continued integration and optimisation of the supply chain. After completing

spots p t More information: salesint@reedbusiness.nl +31 (0)314 349 968

his studies at Groningen University, Jeroen Both (1964) began his career in 1989 at British American Tobacco, where he has held various positions in supply chain management, procurement and production. Jeroen Both has gained extensive international experience, both in Western and Eastern Europe, as well as in Asia. Jeroen Both is currently Director of Operations - Other Tobacco Products for Western Europe.

Founder and Chairman Tom Ritchey appointed Claudio Bianchi as the new CEO of Ritchey Design Inc. effective as of January 1, 2015. Since the start of Ritchey Design, Tom has been Chairman and CEO of the company.

According to a company statement the shift in management will allow him to focus purely on product development for the brand. Claudio Bianchi has been with Ritchey for more than 20 years in several functional areas of management. Most recently he served as General Manager of Ritchey International, a post he has held since October of 2001. He will report directly to Tom Ritchey, Chairman of the Board and Director of Product Development, a role he will continue to lead as all products bear his name and product design is and has been his lifelong passion.

Robert van Houten joined AGU Holding and AGU BV as general manager, effective from

November 3rd 2014. The position of general manager is new to AGU as the company previously had a three man taskforce. In this new structure of AGU Holding and AGU BV Van Houten will work closely with Dirk de Boer (director operations), Marco Crombeen (director finance) and a manager human resources. After finishing his studies and MBA Robert van Houten (46) held different positions with Center Parcs, Gioma Group (restaurants), and Ahold Europe. AGU is still a family owned company. Peter van den Kommer's daughter Marie-José and Jaap van den Kommer's son Martin will join the Board of Directors. Other Board members are Bert Molenaar and Jaap and Peter van den Kommer.

Let’s communicate in the Bicycle & Scooter Market!

INTERNATIONAL BICYCLE PARTS & ACCESSORIES DIRECTORY Company Name : CHIEN KING INDUSTRIAL CO; LTD. Contact : Tony Liang Address : No.34-15,Pu Tsai Rd, Nan Kang Village, Pu Yen Shiang, Chang Hwa County,51649 Taiwan Postal code + City : 51649 Chang Hua County Country : TAIWAN Telephone : +886-4-8813644 Fax : +886-4-8812804 E-mail : ckic@ms64.hinet.net Website : www.ckic.com.tw Categories : Handlebar, Saddles and Pedals Accessories

Company Name : Hubsmith Co., Ltd. Contact : Mily Lai Address : No.57 , Alley52 , Lane210 , Lientsun Rd., Fengyuan Dist. , Taichung City , Taiwan , R.O.C Postal code + City : 420 Taichung Country : Taiwan Telephone : +886-425379168 Fax : +886-425379808 E-mail : clf@hubsmith.com Website : www.hubsmith.com Categories : Wheel Components City and Trekking Bike Components

Company Name : KOGEE INDUSTRIAL CO., LTD L Contact : Sam Chen Address : NO 34, Jiahou Road, Waipu District., Taiwan (R.O.C.) Postal code + City : 43856 Taichung Country : Taiwan Telephone : +886-4-26832810 Fax : +886-4-26838008 E-mail : kogeesales@gmail.com Website : www.spinner-usa.com Categories : Frames & Frame Components

Company Name : ORA ENGINEERING CO. LTD., Contact : EMILY YU Address : No.288, Sanchong 2nd Rd., Houli Dist., Taichung City 42148, Taiwan R.O.C. Postal code + City : 421 TAICHUNG Country : TAIWAN Telephone : +886-4-25586915 Fax : +886-4-25586958 E-mail : oraeng@oraeng.com.tw Website : www.oraeng.com.tw Categories : Frames and frame components (Titanium alloy)

Contact Address

Company Name : First Bicycle Components Co., Ltd. Contact : Chrissie Huang Address : No. 45th, Kung 9th Rd., Rinan Vil., Tachia Dist., Taichung 43769, Taiwan Postal code + City : 43769 Taichung Country : Taiwan Telephone : +886-4-26815039 Fax : +886-4-26815917 E-mail : sales@firstcomponents.com Website : www.firstcomponents.com Categories : Frames & Frame Components Transmission Components City and Trekking Bike Components e-Bike Components Accessories

Company Name Brand Contact Address

: GUMONDER INDUSTRIAL CO., LTD. : GMD : LIN, WEN-JU : NO 3-8, JI LUNG HSIANG, HO PING LI, JYI JYI TOWN Postal code + City : 552 NAN TOU HSIEN Country : TAIWAN Telephone : +886-49-2762306,2760187 Fax : +886-49-2762889 E-mail : gmd100@ms41.hinet.net cindy@gmd-tire.com.tw Website : www.gmd-tire.com.tw Categories : Wheel Components

: Hwa Fong Rubber Ind. Co., Ltd. : Rm #815, 8th Fl., No.152, Sung-Chiang Rd., Postal code + City : 10458 / Taipei Country : Taiwan Telephone : +886-2-25319833 Fax : +886-2-25221630, 25221184 E-mail : duroexp2@duro.com.tw Website : www.duro.com.tw Categories : Tire & Tube Manufacture

Company Name : KING RITZ ENTERPRISE CO., LTD. Contact : Juliana Chi Address : 11-11, Sihyue Rd, Hou Li Postal code + City : 42112 Taichung Country : Taiwan, R.O.C. Telephone : +886-4-25561130/1, +886-4-25573688/9 Fax : +886-4-25572320 E-mail : yst@ms6.hinet.net Website : www.yst-corp.com.tw Categories : Transmission Components e-Bike Components

Company Name : Neco Technology Industry Contact : Tina Wang Address : No. 190 ZhongZheng Road, Wufeng Township Taichung County 41362, Taiwan.

Postal code + City : 41362 Taichung Country : Taiwan Telephone : +886-4-23323966 Fax : +886-4-23322866 E-mail : neco@necopartc.com Website : Neco.rovebike.com Categories : Handlebar, Saddles and Pedals City and Trekking Bike Components e-Bike Components Accessories

Company Name : Kind Shock Hi-Tech Co., Ltd. Contact : Grace Chen Address : No.72, Kung Ming South 1st Rd An-Nan District Tainan City Taiwan Postal code + City : 70968 Tainan Country : Taiwan Telephone : +886-6-2568575 Fax : +886-6-2567293 E-mail : kssale@kindshockglobal.com Website : www.kssuspension.com Categories : Dropper & Suspension Seat post Rear Shock Front Fork Handlebar Accessories

Company Name : MEGA COMPOSITE TECHNOLOGY CO., LTD. Contact : Ed Huang Address : No.1, Ln. 1, Sec. 1, Jiatou Rd., Longjing Dist., Taichung City 43443, Taiwan (R.O.C.) Postal code + City : 43443 Taichung Country : Taiwan (R.O.C.) Telephone : +886-4-26358080 Fax : +886-4-26350111 E-mail : megacomposite@gmail.com Website : http://www.megacomposite.com.tw/ Categories : Wheel Components Handlebar, Saddles and Pedals City and Trekking Bike Components Accessories

Company Name : Yung Fang Plastic Co., Ltd. Contact : Paul Chen Address : No.306, Sec 4, Chang Nan Rd., Chulin Tsun, Fenyuan Hsiang Postal code + City : 50241 Changhua Hsien Country : Taiwan Telephone : +886-49-2522259 Fax : +886-49-2526719 E-mail : yungfang@yungfang.com.tw Website : http://www.yungfang.com.tw Categories : City and Trekking Bike Components Accessories

SINGLE MINDED PURSUIT The SRAM X-SYNC™ tall square teeth edges engage the chain earlier than traditional triangle shaped teeth. The sharp and narrow tooth profile, rounded chamfer edges, and mud-clearing recesses provide the highest level of performance and durability. Engineered in Germany, X-SYNC™ rings are an integral part of the SRAM 1x ™ drivetrain.

Accept no imitation.

ALL FOR ONE

AM

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SRAM 1x™ is the only one you need: less weight, better chain control and the ability to sync up with any riding style. Our 1x drivetrain philosophy focuses on optimizing how components work together—crank to ring, tooth to chain, shifter to derailleur, derailleur to cassette, and cassette to wheel. No matter where you ride, no matter what you’re up against, SRAM 1x™ takes you further.

SRAM.COM/1X

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Photos: Victor Lucas, Adrian Marcoux, Sven Martin © 2015 SRAM LLC