Shimano Will Invest 300 Million US Dollars To Expand Factories in Singapore And Japan

According to foreign media reports, Shimano plans to invest 179 million US dollars to build a new plant in Singapore, which will start production next year.

Taizo Shimano, the company's new president, said the plant serves as a means to meet the surge in demand for bicycles in the transportation sector. The company will be built in the Jurong Innovation District on the west side of the city. The plant will be designed to produce high-end transmissions to solve the output problem of high-end transmissions. President Taizo said the factory will be built into a digital factory of the future.

The factory was originally scheduled to start construction in 2020, but due to the spread of the new crown epidemic, the project was forced to stop. It is now expected that the plant can be put into operation in 2022. In terms of output, the additional investment will be 1.5 times the original capacity of Singapore.

In addition, Shimano will also invest US$118 million to build its Japanese factories in Osaka and Yamaguchi, Japan, to expand production capacity.

Shimano controls the largest share of OEM and aftermarket component supply. With the new crown epidemic posed a challenge to the global business, Shimano has been facing the pressure of not being able to meet much higher than usual demand. This investment in a new factory is bound to greatly alleviate such embarrassment in the future.

With the spread of the epidemic in 2020, Shimano’s bicycle sales have indeed achieved a growth of 2.7%, of which bicycle sales accounted for about four-fifths of the company’s sales, and the rest is fishing. In an investor relations statement issued in February this year, Shimano increased its new sales forecast by 20%.