In response to a slowdown in demand, SRAM is set to close its Kunshan facility in favour of production in Taichung, Taiwan.
David Zimberoff, SRAM’s VP of Marketing confirmed the factory’s closure, which was primarily responsible for producing OEM units for the domestic market. The production consisted largely of entry-level suspension and disc brake manufacture.
Opened in 2013, the factory’s demise is blamed on a 30% slide in business last year, a trend that has continued as we head toward 2017. At the time of closure, the Kunshan plant was operating at just 20% of its possible capacity. The fate of the factory was further sealed with new wage rates for Chinese workers, who benefited from a 7.4% rise, a figure adds to a prior increase of 9% in 2014.
Though production moves overseas, Kunshan will retain a base for sales, marketing, service and warranty.