KTM Bicycles will invest €10 million in a new production space in Mattighofen, Austria, the CEO Stefan Limbrunner reported on ORF Radio Upper Austria on Wednesday afternoon.
The facility will come in place of the 45-year-old hall on its site where a 5,000 square foot production building will be constructed.
The move comes on the back of a management reshuffle at the Austrian business in which operational control of the business was given to Johanna Urkauf and Stefan Limbrunner. This ties in with the retirement of long-term MD Franz Leingartner.
According to the KTM announcement the factory is scheduled for completion in ten month’s time.
Limbrunner said: “Growing demand for e-bikes is the main reason for the investment. When it comes to sales, more than 60 percent is generated by e-bikes. Also, in volume, the numbers are increasing rapidly. In Mattighofen the production volume expanded from 66,000 units in 2017 to 88,000 units this year. In 2019, we have planned 111,000 bicycles.”