| January
18, 2001
In
a recent expansion move, Taiwan bicycle parts manufacturer SunRace
Roots Enterprise Co., Ltd., stepped forward to acquire Sturmey-Archer
Ltd. of Britain, an established hub gear maker. The deal was reportedly
made for approximately US$1.7 million. SunRace specializes in
making components such as derailleurs, shifters and freewheels.
According
to SunRace executives, it is part of a strategy to increase the
company's overall international competitiveness. "There are
two main reasons for such a move," said a SunRace spokesperson.
"First of all, until now, Taiwan has not had the technology
to manufacture hub gears, although SunRace has been trying to
cooperate with several local bicycle research units such as the
Taiwan Bicycle Industry R&D Center and the Industrial Technology
Research Institute (ITRI)," he said.
By taking the opportunity that resulted from Sturmey-Archer's
financial difficulties, SunRace was able to acquire Sturmey-Archer's
patents, equipment and marks, making the company one of only three
hub gear manufacturers in the world, and at the same time, enhancing
Taiwan's technical ability in the field.
"A
second reason for the move was that Central and Latin America
have been SunRace's main export markets, and we have had a hard
time getting into the European market," noted the spokesperson.
As Sturmey-Archer is a well-established brand name in Europe,
it should be much easier for SunRace to enter this market. "Now
that we have an affiliate company in Holland, and branch offices
in the U.K., mainland China and the U.S, we are able to deal with
every region of the globe," added the SunRace spokesperson.
Due
to high labor costs in England, SunRace will bring some of Sturmey-Archer's
equipment back to Taiwan, as well as several technicians who will
assist in transferring hub-gear making techniques to the Taiwan
staff.
SunRace
will not take over Sturmey-Archer's other product lines, such
as sintered steel, cold formed and machined parts for the automotive
and electrical appliance industries, the spokesperson revealed.
The company has already rented two factory buildings in Wuxi Industrial
Park of Jiangsu province, mainland China, and was scheduled to
begin production there at the beginning of February this year.
Mass production will begin in the first quarter of this year.
Sturmey-Archer
was established in 1902 and is a leading brand worldwide for bicycle
parts and other specialized products designed for engineering
purposes. The U.K.-based firm made hub gears, hub brakes, spokes
and the well-known Brooks leather saddle.
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