Shimano forced to shut Malaysia component factory 11.06.2021

Shimano forced to shut Malaysia component factory in latest blow to the supply chain
(June 2021) Shimano's factory in Malaysia will be completely closed until at least June 14 due to an official COVID-19 mandate. Since June 1, the factory had been allowed to operate at 60% capacity.
Shimano informed its customers of the change on June 10, saying it was uncertain whether it would be able to resume production in any capacity after June 15.
"So far, the Malaysian government has not informed the decisions to be taken after June 15," read a company update that Shimano's Yutaka Taniyama shared with customers. Taniyam is the company's vice president of sales in its bicycle division.
Shimano has in the past manufactured its hubs, derailleurs, wheels, pedals, freewheels and V- and disc-brakes at its Malaysia facilities, which it first established in 1990.
On May 29, Malaysia's prime minister announced that the company would be on a lockdown from June 1-14, with many businesses allowed to continue operating at 60% capacity.
Prior to the lockdown, the country was seeing more than 8,000 COVID-19 cases per day. The goal was to bring the number of daily below 4,000, but this week the average daily rate was still above 5,000, prompting the decision to extend the shutdown indefinitely.
The country has had 3,611 deaths due to COVID-19 since the pandemic began, and 633,000 confirmed cases. Less than 4% of its population is fully vaccinated.

Take a hike: Bike prices will go up again 11.02.2021

Material costs.
Since the start of 2020, aluminum is up 15%, and rubber is up by 50% or more. Steel prices were up about 20% in 2020, and China Steel Corp., Taiwan’s biggest steel maker, announced another 9.5% price increase on Jan. 14.
Even corrugated cardboard is up 10% in the last year, with a sharp price increase in the commodity cost at the end of 2020.
Whether by sea, land or air, moving products around has become slower and more expensive. Contract ocean freights, which are generally set for a one-year period, are up 40%. Spot container rates, which vary constantly depending on the availability of containers and demand, are about 2 ½ times the contract rate.
Even at the high rates, it’s still difficult to arrange for enough containers, importers said.

update: bicycle show participation 28.12.2020

Due to COVID-19 outbreak, we refrain from participating in any events. Thank you for your understanding.

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