Shimano Announces $179 Million Singapore Facility - Urban Mobility Is Booming

Some people may be doubting the fact that urban mobility is an extremely fast-growing industry. Well, to take those doubts away, here’s Shimano with their newest $179 million plan for growth.
Nukeproof Megawatt With Shimano Drivetrain 9 photos
Photo: Nukeproof
Cicli Pinarello Nytro Urbanist With ShimanoShimano LINKGLIDENukeproof Megawatt With Shimano DrivetrainNukeproof Megawatt With Shimano DrivetrainTrek 1120 With Shimano DrivetrainTrek 1120 With Shimano DrivetrainTrek Marlin 5 With Shimano DrivetrainTrek Marlin 5 With Shimano Drivetrain
Recent news on Nikkei Asia reveals Shimano’s most recent investment, a new plant in Singapore. What does this all mean for the growing component manufacturer? So many things all at once. From booming business to market control, it would seem like this company is going for it all.

Now, recent news for Shimano has been, well, great. They've just announced a 22.5% growth in comparison to last year, even though recent events have also seen the passing of former President Yoshizo Shimano. Newley appointed and rising star, President Taizo Shimano, doesn’t seem to be slowed down one bit.

Coinciding with Shimano’s 100th anniversary, this year seems like the perfect time to show the world just what they’re made of, not that they don’t have the right stuff. That growth I mentioned earlier, that’s a generated growth income figure, and it stands at 66 billion Yen, which is around $572 million at current exchange rates. From here, Shimano forecasts it’s growth to 79 billion Yen, or $717 million. Any investors in the crowd!? To heck with gold!

Photo: Shimano Inc
One other factor that influenced this major move is the current market demand for components destined towards bicycles, and not only, as Shimano also produces rowing equipment and even fishing tackle. But it’s really the bicycle and urban mobility industries that are seeing the largest boom.

The demand is so strong for components from this company that they’re even facing a production shortage, not to mention a deteriorating Singapore factory that was built back in 1973, according to Nikkei. Let’s face it, everyone has been seeing more and more bikes and e-bikes on the market, and most of them are equipped with Shimano.

The new plant is expected to be nestled alongside an already existing plant in the Jurong Innovation District, on the west side of Singapore. Not only is it meant to be a factory for building components, but it will also be considered a “factory of the future,” one where a large emphasis will be placed on digitalization.

Trek 1120 With Shimano Drivetrain
Photo: Trek
Also reported by Nikkei is Shimano’s plan to invest another 13 billion Yen ($118 million) into two more existing factories, the Osaka and Yamaguchi facilities. Again, this is all to keep up with a growing demand for these sorts of components. Here too, the team will be introducing new manufacturing equipment aimed at boosting output.

Now, what does this mean for all other cycling component manufacturers on the market? Well, you can basically think of Shimano as one big snowplow that’s clearing everything away with ease. What this can also mean for other manufacturers, is a signal, a clear signal that the upcoming year, two, maybe even three, this industry will just keep growing.

Most people know the expression “Fake it ‘til you make it.” Well, I personally like “Mimic ‘til you make it.” The latter seems to offer a clearer indication of what it is I should be doing to succeed. If you’ve been thinking of starting a business but haven’t really been too sure as to what wave to catch, this seems to be one of them. From here, you can either sit by and watch, or do what the majors are doing, and keep growing. Take out those business training wheels and start learning how to keep your balance.
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Editor's note: The images provided in the gallery include bikes and e-bikes which are sold with a Shimano drivetrain.

About the author: Cristian Curmei
Cristian Curmei profile photo

A bit of a nomad at heart (being born in Europe and raised in several places in the USA), Cristian is enamored with travel trailers, campers and bikes. He also tests and writes about urban means of transportation like scooters, mopeds and e-bikes (when he's not busy hosting our video stories and guides).
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