Giant invests in manufacturing and distribution in Europe

Giant announces the production and distribution expansions in Europe. The expansion signals its commitment to the market with its focus on reducing costs. Giant currently sells more than 400,000 bikes annually in Europe, including traditional bikes and e-bikes.
Giant is also coming up with a factory in Hungary that is about 80 kilometers away from Budapest. Gyöngyös, the place where the factory will be located, is in northern Hungary and has access to various road networks. Gyöngyös is a former mining town with an industrial base. The town has recently become an important wine supplier to East and Central Europe as well.
Giant also announced that the new factory is a long-term investment with the plan of being carried out three phases. Its first phase aims to bring in an estimated capital spending of around 15 million euros. The total investment in the new factory is estimated to be around 48 million euros i.e. $56.3 million.
The construction of the first phase of the new production facility is expected to be completed the end of 2019. Its initial production capacity will be around 300,000 units and will aim to target the core European bicycle and e-bike models.
According to a spokesperson from Giant, Hungary’s ideal geographical location within central Europe will help them distribute their products to Eastern as well Mainland Europe. Its well-established transportation system has also been the key factor behind choosing Hungary as the base for the second production facility in Europe. The new factory targets to also reduce Giant’s tax and transportation costs.
Giant has also announced that it is investing 13.5 million euros i.e. $15.8 millionto open a distribution center in Lelystand, Netherlands. This distribution centre will handle distribution, storage and after-sales service for the pan-European markets along with supporting the fast-growing demand for e-bikes there.


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