From Bicycle Retailer and Industry News
APRIL 15, 2006 -- DONGGUAN, China—The bad news about carbon fiber bicycles is that supply is likely to remain constrained and prices high until at least 2010. The good news, one factory official said, is that there will be carbon fiber bikes at all.
“We were damn close to just shutting down completely,” said Eric Koh, assistant general manager of Martec, one of the world’s top manufacturers of carbon fiber frames.
Koh said the major makers of raw carbon fiber nearly opted to stop supplying the sporting goods industry last year, as aerospace and other industries needed as much carbon as they could get.
“Ten years ago the carbon suppliers were begging us to buy carbon fiber—five years ago, even,” Koh said. “Things turned around in a hurry,” he added.
No Worries? But if framemakers are worried about supply disruptions, you’d hardly know it from visiting carbon fiber factories in southern China. Many new factories have sprung up in recent months as Taiwanese and Chinese investors prepare for a time when they hope carbon fiber will be widely available. Officials estimate 10 to 15 carbon frame factories are now operating.
Even Martec is building a new factory, starting construction late last year after surviving the worst of the supply scares.
With a capacity of 60,000 to 70,000 frames a year and 400,000 forks, Martec is responsible for 20 to 25 percent of the world’s carbon fiber frame supply, Koh estimates, putting it on a par with Giant’s factory in Taichung, Taiwan, and Trek’s plant in Wisconsin.
Southern China is home to two other major factories: Topkey, in Xiamen, and Ten Tech Composites, also in Dongguan, known for the Ransom mountain bike frame it makes for Scott.
Staying Small. Among the newcomers, many factories are half-empty and likely will stay that way for now.
“Our minimum order is only 100 frames. I don’t want to deal with Trek or Specialized because they are so huge. I only want the small companies,” said Eugene Young, president of CarbonAge, which opened in August 2004.
Young is a veteran of the Giant Cadex carbon fiber bike project and a co-founder of Kinesis.
“The most difficult challenge for us is the material shortage, but so far, so good,” Young said. “The reason I keep the capacity small is that it is difficult for us to get the raw material.”
With a monthly capacity of 1,300 frames and 1,000 forks, the Shenzhen factory supplies Derby, Diamondback and Raleigh in North America and Corratec and Basso in Europe.
CarbonAge has developed a tube-to-tube process similar to what Ten Tech does with the Ransom frame, where each tube is made individually. Tube-to-tube is less expensive than a monocoque frame and can be 200 to 300 grams lighter, Young said.
Nearby, on the spacious campus of XDS Carbon Tech in Shenzhen, the workers’ dormitory buildings sit on top of a grass-covered hill, giving them a view that few factory workers receive.
XDS, which began production last May, is distinctive in another way. It is owned by Chinese investors in an industry dominated by the Taiwanese. XDS is part of Shenzhen Xidesheng Bicycle Co., Ltd. The parent company invested $8 million in XDS and hopes to post sales of about $12 million this year, general manager Henry Tan said.
Tan said attracting customers will take work. “We will compete with hard work, efficiency, and by getting customers to know us. We want to get their attention, get them here and let them see what we can do.”
The factory is now working at about half capacity, producing 100 monocoque frames and 150 forks a day, said Richard Gu, vice president of sales.
Many carbon fiber frames make their way to a Shenzhen painting factory called Dodsun. General manager K.G. Sun said carbon frames pose special challenges because the weave of the fibers can leave pinholes that will blemish a paint job.
“If there is even a small problem, the consumer will complain. It’s very different from alloy or steel because the frame is so expensive,” Sun said. “It is three to four times the labor for painting a carbon bike compared to alloy,” he added.
Worries Persist. Last year, Koh said, supply disruptions forced Martec to close for 10 days.
“Under the pressure that we were under to deliver frames, 10 days was a nightmare,” he said. “We couldn’t operate at full speed for several months.”
Koh expects supplies to ease in 2007 and tighten up again until at least 2010.
Some carbon suppliers wanted to deliver all of their best fiber to the aerospace industry and shut off the sporting goods industry. Only after carbon company officials visited bike shows last year—notably Milan—did they relent.
“They were shocked by the design and professionalism of the use of carbon fiber on bikes,” Koh said.
A single Airbus A380 superjumbo jet will use some 70,000 metric tons of carbon fiber, while the entire sporting goods industry consumes about 200,000 tons a year, Koh said. “We’re talking about three Airbuses,” he said. “And they have 150 on order.”
http://www.bicycleretailer.com/...ontent_id=1002343377
APRIL 15, 2006 -- DONGGUAN, China—The bad news about carbon fiber bicycles is that supply is likely to remain constrained and prices high until at least 2010. The good news, one factory official said, is that there will be carbon fiber bikes at all.
“We were damn close to just shutting down completely,” said Eric Koh, assistant general manager of Martec, one of the world’s top manufacturers of carbon fiber frames.
Koh said the major makers of raw carbon fiber nearly opted to stop supplying the sporting goods industry last year, as aerospace and other industries needed as much carbon as they could get.
“Ten years ago the carbon suppliers were begging us to buy carbon fiber—five years ago, even,” Koh said. “Things turned around in a hurry,” he added.
No Worries? But if framemakers are worried about supply disruptions, you’d hardly know it from visiting carbon fiber factories in southern China. Many new factories have sprung up in recent months as Taiwanese and Chinese investors prepare for a time when they hope carbon fiber will be widely available. Officials estimate 10 to 15 carbon frame factories are now operating.
Even Martec is building a new factory, starting construction late last year after surviving the worst of the supply scares.
With a capacity of 60,000 to 70,000 frames a year and 400,000 forks, Martec is responsible for 20 to 25 percent of the world’s carbon fiber frame supply, Koh estimates, putting it on a par with Giant’s factory in Taichung, Taiwan, and Trek’s plant in Wisconsin.
Southern China is home to two other major factories: Topkey, in Xiamen, and Ten Tech Composites, also in Dongguan, known for the Ransom mountain bike frame it makes for Scott.
Staying Small. Among the newcomers, many factories are half-empty and likely will stay that way for now.
“Our minimum order is only 100 frames. I don’t want to deal with Trek or Specialized because they are so huge. I only want the small companies,” said Eugene Young, president of CarbonAge, which opened in August 2004.
Young is a veteran of the Giant Cadex carbon fiber bike project and a co-founder of Kinesis.
“The most difficult challenge for us is the material shortage, but so far, so good,” Young said. “The reason I keep the capacity small is that it is difficult for us to get the raw material.”
With a monthly capacity of 1,300 frames and 1,000 forks, the Shenzhen factory supplies Derby, Diamondback and Raleigh in North America and Corratec and Basso in Europe.
CarbonAge has developed a tube-to-tube process similar to what Ten Tech does with the Ransom frame, where each tube is made individually. Tube-to-tube is less expensive than a monocoque frame and can be 200 to 300 grams lighter, Young said.
Nearby, on the spacious campus of XDS Carbon Tech in Shenzhen, the workers’ dormitory buildings sit on top of a grass-covered hill, giving them a view that few factory workers receive.
XDS, which began production last May, is distinctive in another way. It is owned by Chinese investors in an industry dominated by the Taiwanese. XDS is part of Shenzhen Xidesheng Bicycle Co., Ltd. The parent company invested $8 million in XDS and hopes to post sales of about $12 million this year, general manager Henry Tan said.
Tan said attracting customers will take work. “We will compete with hard work, efficiency, and by getting customers to know us. We want to get their attention, get them here and let them see what we can do.”
The factory is now working at about half capacity, producing 100 monocoque frames and 150 forks a day, said Richard Gu, vice president of sales.
Many carbon fiber frames make their way to a Shenzhen painting factory called Dodsun. General manager K.G. Sun said carbon frames pose special challenges because the weave of the fibers can leave pinholes that will blemish a paint job.
“If there is even a small problem, the consumer will complain. It’s very different from alloy or steel because the frame is so expensive,” Sun said. “It is three to four times the labor for painting a carbon bike compared to alloy,” he added.
Worries Persist. Last year, Koh said, supply disruptions forced Martec to close for 10 days.
“Under the pressure that we were under to deliver frames, 10 days was a nightmare,” he said. “We couldn’t operate at full speed for several months.”
Koh expects supplies to ease in 2007 and tighten up again until at least 2010.
Some carbon suppliers wanted to deliver all of their best fiber to the aerospace industry and shut off the sporting goods industry. Only after carbon company officials visited bike shows last year—notably Milan—did they relent.
“They were shocked by the design and professionalism of the use of carbon fiber on bikes,” Koh said.
A single Airbus A380 superjumbo jet will use some 70,000 metric tons of carbon fiber, while the entire sporting goods industry consumes about 200,000 tons a year, Koh said. “We’re talking about three Airbuses,” he said. “And they have 150 on order.”
http://www.bicycleretailer.com/...ontent_id=1002343377