Production Relocation to Europe Becoming Main Trend
DOETINCHEM, The Netherlands – Currently there’s a massive market makeover taking place. It’s of course triggered by the anti-dumping duties on e-bikes and regular bicycles as well as the Trump Tariffs. However, there’s more that comes into play here. It’s also about close-to-market; being flexible and faster. And increasing the supply to meet the skyrocketing European wide demand for e-bikes.
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That rapidly rising demand for e-bikes caused many new names to emerge on the market. Like AG Motors who is making alloy e-bike frames in Poland. But also renowned names are taking action to meet the rapidly rising e-bike demand. Like Giant and Merida setting up new and/or heavily expanded facilities producing electric bicycles of various categories. The same goes for the production of e-bike components. More, much more is needed when it comes to motors, batteries as well as all other electronics. In particular as the latest forecasts predict that e-bike sales In Europe will stand at 10 million units by 2025.
Sector’s switch to omni-channel
What’s also pushing the current market changes is online sales and the sector’s switch to omni-channel distribution strategies. That requires foremost speed, flexibility and close to market production; in Europe. E-Bike drive system maker Bafang is an example of a company focused on just that with its new production facility in Poland.
Lithium-Ion batteries production
But there’s more taking place when viewing production relocation of e-bikes as well as parts to Europe. The company Viridus has started the production of e-bike Lithium-Ion batteries at its modern Aarhus facility. Another example is Scottish Intra Drive Ltd that developed a mid-drive unit that features integrated electronic (wireless) 8-speed shifting.
Viridus aims for close to market production to counterbalance the supply of black batteries from China, which are transported several thousand kilometers to reach e-bike makers manufacturers. Viridus has been established as a joint venture between Promovec in Denmark and Greenway in China. The company was founded in 2018, but green battery production only got underway last August. Viridus expects to be producing 50,000 green batteries for electric bicycles annually by the end of 2019 in its cutting-edge assembly hall, which is packed with state-of-the-art production equipment. By the end of the year, Viridus expects to have around 12-15 employees.
“In many ways, it’s paradoxical that electric bicycles, which in themselves are an environmentally friendly mode of transport, still use black batteries that are transported right across the globe to reach the European bicycle manufacturers. We need to change this in order to take better care of the world. The consumers have also become more aware of their climate footprint, and bicycle manufacturers are starting to notice this,” says Jesper Lundqvist, Viridus MD who is also leading Promovec.
Greater flexibility and faster deliveries
Next to the sustainability and environmental benefits of Viridus’ close to market production, the company also aims at offering e-bike makers greater flexibility and faster deliveries. “Importing subcomponents from Asia, means ordering six months in advance. This makes life difficult for e-bike manufacturers, who often require more flexibility in their production. We believe that through European production of green batteries we can create precisely this greater flexibility, thanks amongst other things to the much shorter distances involved,” says Jesper Lundqvist. The Viridus MD claims that several Danish bicycle brands have already bought into the concept, and from now on will use only green batteries.
