Bicycle maker Merida Industry Co (美利達) plans to invest 12 million euros (US$13.66 million) expanding its German subsidiary to an annual output of 90,000 units in three years, as sales of electric bicycles rise steadily.
To meet the growing demand for electric bicycles in Europe, Merida & Centurion Germany GmbH (MCG) is to build new production lines in the third quarter, a Merida public relations official told the Taipei Times by telephone yesterday.
“Our plant in east Germany has an annual output of 15,000 electric bikes this year, and we expect it to climb to 30,000 units next year and 90,000 units in 2022,” said the official, who asked to remain anonymous.
The official said the investment in MCG, in which Merida holds a 60 percent stake, would make sure the unit has sufficient components for electric bikes.
The company also aims to create a supply chain in the region through the investment, which would help Merida shorten its shipment times and make it more efficient in responding to customers’ needs, he said.
Electric bicycles made by MCG would be sold in European markets, he added.
“Once the capacity expansion in MCG is done, the production lines of our Taiwanese and German units will be complementary, with the former focusing on making traditional and electric bikes for racing and training, and the latter focusing more on casual and high-end urban e-bikes,” the official said.
Merida also plans to increase its stake in Japanese bicycle manufacturer Miyata Cycle Co Ltd from 45 percent to 70 percent this year, the company said.
The company’s electric bicycle shipments in the first five months increased 7.78 percent year-on-year to 74,000 units, accounting for 31.63 percent of the nation’s total electric bike shipments and 38.42 percent of the nation’s electric bike revenue, the official said.
Revenue in the first five months increased 0.63 percent to NT$10.55 billion (US$339.1 million), from NT$10.48 billion a year earlier, company data showed.
“We expect the monthly output of electric bikes to grow from about 14,800 units in the first half of the year to 20,000 units in the third quarter and reach 30,000 units next year as new production lines are constructed,” he said.
Shareholders yesterday approved the company’s plan to distribute a cash dividend of NT$3.5, representing a payout ratio of 61.19 percent based on last year’s earnings per share of NT$5.72.
That was a dividend yield of 1.9 percent based on yesterday’s closing price of NT$184.5 in Taipei trading.
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