Giant Manufacturing, a Taiwanese bicycle manufacturer that bills itself as the world's largest bicycle manufacturer, will invest US$15 million to build a new factory in Kunshan City, Suzhou city, Jiangsu province.

The new plant, which is expected to cover more than 500 acres, will specialize in manufacturing frames, front forks and bicycle assembly pieces, which will help to enhance the firm’s overall production capacity. Plant construction is scheduled to begin by summer.

Giant will also expand the output at existing factories in China to meet growing demand. . The firm will invest some RMB20 million to set up a new production line at its largest plant in Tianjin in the first half of 2010, which reportedly will increase the existing output of 1 million bicycles by 300,000 units each year.

With six factories in China, the company produces 4.2 million bicycles a year in China alone. The company, which also produces 400,000 electric bicycles in China each year, reported that the new goal for 2010 is 5 million bicycles.

Established in 1972, Giant began by manufacturing bicycles to be sold exclusively under other brand names. In 1986, Giant, under new president Bill Austin, established its own brand of bicycles to compete in the rapidly expanding $200-and-above price range. Today, Giant has more than 10,000 retail stores in more than 50 countries.

By Xie Fang