Tuesday, July 20, 2010

No more Anti Dumping Duties for Vietnam

Last week, on July 15, 2010 the 34.5% anti-dumping duty on Vietnam made bikes imported into the European Union was dropped. This prompted A&J Worldwide Group to announce the re-opening of its Vietnam facility based near Ho Chi Minh City. A&J Worldwide Group opened its High Ride Vietnam factory in 2003. At that time the 150,000 sq feet facility had 2 production lines capable of producing 800,000 to 1 million bikes as well as automatic and semi-automatic wet and dry painting lines. The factory produced close to 700,000 bicycles a year in 2004 and 2005, mostly destined for the European market. After the anti-dumping duties on Vietnam made bikes came into force in July 2005, Vietnam’s export numbers dropped heavily. They declined from about 1.5 million bikes in 2004 to less than 7,000 in 2009. It forced A&J to shift their production to Cambodia. In 2006 A&J Worldwide Group opened Atlantic Cycle Co. Ltd. in the Cambodian Svay Rieng province for the export of bicycles to Europe, Canada, Japan, Norway and the USA. The Cambodian plant is the biggest of all the A&J factories at some 200,000 sq feet with 3 production lines providing capacity for around 1 million bikes per year. Next to complete bicycles, Atlantic Cycle also produces alloy frames. Read more in Bike Europe.