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7/2021
BUSINESS Portugal Bike Value wants to accelerate trend to re-shore production to Europe
Portugal takes a leading role ÁGUEDA, Portugal – The timing couldn’t be better with lead-times of more than six months for essential components while demand continues to escalate. The impact on the market is increasing and accelerating the trend of close-tomarket production. Portugal aims to take a leading role in this reshoring trend. How quickly is the country’s industry developing? Jo Beckendorff
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n October, the Portuguese bicycle industry association, ABIMOTA, announced a major investment scheme of €258 million as part of Portugal’s Recovery and Resilience Plan. It aims to strategically expand the role of the domestic bicycle industry as the leading bicycle manufacturing nation in Europe. Above all, Portugal wants to be seen as a genuine alternative to production in the Far East. This is reason enough for this trade journal to take a closer look at Águeda and the surrounding area, which is the heart of the Portuguese bicycle industry. In addition to Portugal, Bulgaria
ABIMOTA consultants Sergio Gonçalves and Sergio Ribeiro, and Secretary-General Gil Nadais at ABIMOTA’s well-equipped in-house inspection and testing laboratory. Photo: Jo Beckendorff
and Romania are investing in the European bike industry to add more flexibility to the supply chain. In a series of reports, we will update you on the latest developments in Portugal.
Delivery and logistics challenges The EU is supporting Portugal’s ambitions with financial incentives. Loans, guarantees, investments, and microfinancing are implemented within the European Structural and Investment Funds framework. According to insiders, no less than 40% of the major investments in the bicycle industry have been co-financed by the European Union. Created by ABIMOTA to maximise the country’s potential as a
We want to leverage this momentum and transform the bicycle industry in Portugal. production location for the EU market, Portugal Bike Value benefits from the cycling boom. In times of delivery and logistics problems from the Far East, European bicycle and e-bike brands are jostling in the factories in Portugal in their search for more closeto-market production capacity.
Reshoring production Reshoring production to Europe often surfaces when talking with ABIMOTA Secretary-General, Gil Nadais, about the major strategic investment in domestic production. “In the 80s and 90s, our bicycle industry declined. After the turn of the century, it slowly started to pick up again, and in recent years the market opportunities have been favourable. We want to leverage this momentum and transform the bicycle industry in Portugal. If everything goes as planned, we will soon have a strong and large bicycle sector in Portugal again.” He also notes that the Covid-19 pandemic served as a catalyst in discussing close-to-market production in Europe.
The importance of cooperation According to ABIMOTA consultant Sergio Ribeiro, Portugal Bike Value aims to become a European reference for the global bicycle
industry. His colleague, Sergio Gonçalves, goes one step further and talks about his vision to keep the production know-how in Portugal in the long term. “Research and development are key to solutions and technologies. That’s where we need to work together,” he said.
Key technology project “A key project within the Portugal Recovery and Resilience Plan is the foundation of a technology centre that is accessible for all producers,” says Nadais. The creation of this so-called ‘Centro de Interface Technológico’ in Águeda is in the pipeline. After all, Águeda and its surrounding area is the cradle of the nation’s metal industry. That’s one of the reasons why the local bicycle industry is also deeply rooted in this area.
Independent testing facility ABIMOTA has made a name for itself as an independent testing institute despite being a member organisation for the Portuguese bicycle industry. The test facility is located inside the organisation’s spacious headquarters. Despite this potential conflict of interest, many bicycle producers have their products tested at ABIMOTA in compliance with European standards. “In future, the newly founded Centro de Interface Technológico will not only function as a test centre, but it will also serve as a lever for companies, helping them to expand their knowledge and industrial competencies,” explains Nadais. “Other knowledge centres, such as universities, are also involved. With this combination, a bicycle knowledge hub is to be created, similar to the Taiwan Bicycle Industry R&D Centre founded in 1992. This institute was renamed Cycling and Health Industrial R&D Centre in 2003. At the institute in Taiwan, people work together rather than against each other. According to the basic idea, the Centro de Interface Technológico combines all challenges in market development and technology. Sharing this knowledge is the only way to remain competitive in the global marketplace.”
