Shimano expands factories

The leading Japanese company in components dedicated to the world of bicycles, which currently holds the 65% of the market, has decided to invest in expanding its facilities to cope with the large increase in demand caused by the pandemic.

In recent months, the company has received a lot of criticism for having failed to invest, thus creating problems for the entire bike supply chain.

Shimano will invest 20 billion yen, or 153 million, to build a new factory in Singapore.

The new industrial complex will replace the previous one, built in Singapore in 1973: according to the brand, it will be “thea factory of the future with a particular focus on digitalization” and will produce high-end bicycle components.

Shimano's newly appointed president said an additional 13 billion yen (US$113 million) will be used to expand production and improve efficiency at facilities in Sakai City, Osaka Prefecture, and Shimonoseki, Yamaguchi Prefecture.

The investment will be used for cutting-edge production equipment and software, and the facilities will be used primarily to build e-bike components, a clear sign of the continued growth of this market.

With this type of investment, Shimano intends to increase total production this year by 1.5 times compared to 2019.