Meghna to fork out $5m for bicycle plant
Meghna Group, the country's largest bicycle maker and exporter, is set to fork out $5 million to set up a plant to manufacture carbon fibre frames locally.
The plant will be set up in collaboration with ADK Technology in Taiwan, who will provide the technology as well as the carbon material for production at Meghna.
Once the factory goes into production next year, it will bring down costs by about 15 percent, Mizanur Rahman, chairman of Meghna Group, said.
Initially, only carbon fibre frames would be manufactured, but in two to three years' time, the company is hopeful of incorporating more carbon components such as handlebars, seatposts, rims and wheels in its bicycles.
Costs then would be reduced further, Luthful Bari, director of Meghna Group's operations, said.
The venture, Rahman says, will boost the country's bicycle exports to Europe and elsewhere.
Carbon fibre bicycles are growing in popularity for their light weight and better shock absorption capabilities, which make them more comfortable to ride. However, the benefits come at a cost: they are more expensive than the aluminium bicycles.
At present, the country is allowed duty-free bicycle export to the European Union, due to which the lion's share of the bicycles are shipped there.
In fiscal 2013-14, nearly $113 million worth of bicycles were exported, up 7.62 percent year-on-year.
Meghna Group is the fifth largest bicycle exporter to Europe.
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