Giant Announces Huge Growth and New Factory in Vietnam

Despite supply constraints, container shortages and unfavourable exchange rates, Taiwan’s leading bicycle producer, Giant Group, reported strong sales results for the first half of 2021. Giant also demonstrated their commitment to further growth in the long term by announcing the construction of a new automated e-bike factory in Vietnam.

Giant Group made total consolidated sales of NT$ 41.99 billion (A$2.1 billion) in the first half of 2021 on the back of unabating demand. Compared to the first six months of the previous year, this is an increase of 27.1%. High production utilisation and a better product mix have offset higher raw material and logistics costs.

Due to the strong demand on the global market, in the first half of 2021, Giant Group recorded growth across all of their own brands (Cadex, Giant, Liv and Momentum) in all regions. Giant achieved a net profit after tax for the six months of NT$3.55 billion (A$175 million). This represents a 65.1% increase in profit compared with the first six months of the previous year. Giant also continues to make bikes for a range of other brands.

Ebike sales were up 40% year on year and now represent well over a third of all revenues.

Automated Giant Factory Announced for Vietnam

In releasing their financials, Giant also announced they would be building a factory in Vietnam. No dates were given, but they revealed an initial investment of A$66 million to build the new factory.

Despite record sales, a huge rise in profits and their new factory announcement, Giant gave a cautious outlook for sales in the second half of 2021.

“Due to the limited supply of bicycle components, the production rate is unlikely to improve further, and the increase in global ocean freight costs and the extension of delivery time may affect sales and profit growth in the second half of 2021,” the company said.

A longer version of this article was first published by Jo Beckendorff in Bike Europe