Shifting market demands see Schwalbe switch production to Vietnam

Schwalbe is strategically realigning its production and will manufacture all tyres and tubes exclusively in its existing Vietnam plant in the future. While manufacture will cease in its Indonesia plant, mould making, mixing operations, research & development and administration will remain there.

The move comes in response to the changed bike market, Schwalbe said, revealing a shift in the way orders were being placed – now more spontaneous, rather than long term orders. Schwalbe said: “As a result, it is currently no longer possible to plan ahead to meet demand at two parallel production sites. Schwalbe is therefore positioning itself for the future in the best possible way and is pooling its strengths in Vietnam.”

Schwalbe’s Vietnam plant can offer bundled production in a state-of-the-art site, offering volume and logistics advantages for all Schwalbe customers. Enormous investments have been made there in recent years, the firm said, with new new factory buildings and machinery. In addition, Schwalbe customers can be supplied directly from there with a product mix tailored to their individual requirements.

Since the Schwalbe brand was founded in 1973, all tyres and tubes have been produced together with Hung-A in Asia. The two family-owned companies are linked by a joint venture.

Frank Bohle, CEO of Schwalbe, said: “We at Schwalbe see ourselves as an ecologically and socially responsible company that is proud to have created many new jobs in recent years. While we are expanding the team in Vietnam once again, the decision unfortunately also means that we will have to cut staff in Indonesia. That hurts us a lot.

“After analysing the development and the current situation in detail, this restructuring was unavoidable. We are retaining the option of resuming production in Indonesia in the future, but are now deliberately concentrating our efforts at our site in Vietnam, where we are in an excellent position.”

It seems safe to assume Schwalbe’s ground breaking bike tyres made from used tyres – Green Marathon – will be produced in Vietnam.

Vietnam is a well established bicycle industry manufacturing hub, with the likes of Giant investing significantly in facilities there.