The decision was made following the not the best situation in the bike sector. Instead of long-term orders, orders are now happening without planning.
It is currently no longer possible to plan ahead to meet demand at two parallel production sites. We are preparing for the future as best we can and are joining forces in Vietnam. Huge investments have been made in Vientam in recent years. With new factories and machinery, the site offers the best in manufacturing. Furthermore, Schwalbe customers can be supplied directly from there with a product mix perfectly adapted to their individual needs – Frank Bohle, CEO of Schwalbe
Source: bike.europe.eu
During Bike Europe's visit to the Vietnam plant it was already clear that it would give Schwalbe the opportunity to expand there. By moving production from Indonesia to Vietnam, Schwalbe is making the most of this state-of-the-art site. According to Schwalbe it offers advantages in terms of volume and logistics to all its customers. Just last month, fellow tire maker Vittoria also announced a strategic relocation of production. In this case, A Dugast's production capabilities in the Netherlands were closed and operations were transferred to existing factories in Thailand.
Two years ago we simultaneously invested in a new cotton tire factory in the Netherlands and Thailand, anticipating an expanding market. Instead of growing, the market contracted, and due to inflation in Europe (which is higher than in Asia), it became very difficult to continue the European operation – Stijn Vriends, CEO of Vittoria
New jobs in Vietnam, staff cuts in Indonesia
We at Schwalbe consider ourselves an environmentally and socially responsible company, proud to have created many new jobs in recent years. While we are expanding the team in Vietnam again, the decision unfortunately also means we will have to cut staff in Indonesia. This hurts us a lot – Frank Bohle, CEO Schwalbe
Since the founding of the Schwalbe brand in 1973, all tires and tubes have been produced together with Hung-A in Asia. The two family-run companies are linked by a joint venture.
