Taiwan Official Predicts Strong Industry Sales in 2007

TAIPEI (BRAIN)--Taiwan's bicycle industry is rebounding strongly from a deep dip in exports four years ago when millions of dollars in production moved to China.

Tony Lo, chairman of Taiwan's A-Team and Giant's president, predicted that Taiwan bicycle exports would increase in 2007 and that overall revenue for the industry could approach a billion dollars.

Also fueling optimism in Taiwan this year are projections that show the average unit selling price for Taiwanese-made bikes will increase from $205.60 to $220—a 7 percent jump. That upswing is primarily due to the A-Team's strategy of moving toward higher value frames, parts and accessories.

"Taiwanese manufacturers continue to innovate and, as a result, Taiwan is a hub for the best quality cycling products. We are friends, partners and sometimes we fight, but we are all fighting for a better industry," Lo said.

Taiwanese suppliers recognize they have a common goal—to build high-value products. "There is a recognition that China is a threat. Even though we have accomplished breakthroughs in carbon fiber, new materials and refined parts, China is trying hard to catch up," Lo said.