Taichung, Taiwan – As with all Asian bicycle parts manufacturers, DDK GROUP's factories have been overwhelmed with new production demand. Their existing DDK VN1 factory in Thủ Dầu Một, has a production capacity of 10 million saddles annually. It is currently holding 15 million pieces in their production portfolio. DDK's other factories in Nantong, China, and Changhwa, Taiwan are similarly over-burdened.
In addition to new demand, the situation is further complicated by the need for skilled workers. Hand-covering saddles is difficult artisanal task that's not easily scalable. Although DDK has already hired an additional 400 local workers for their VN1 factory, it will be another several months before these workers are up to speed. Even then, these additional workers will not be sufficient to meet demand.
Accordingly, DDK is increasing total production capacity with the addition of two new factories.
First, DDK has re-purchased their original factory in Bình Dương Province, Vietnam, just north of Ho Chi Minh City. While the total production capacity of this factory is only 3,000,000 pieces annually, it has the advantage of having many local workers who previously worked there and who already have the artisanal skills to hand-cover saddles. Because of this, DDK will be able to begin delivering saddles from this Active factory in August 2021. This will relieve some of the pressure on the DDK VN1 factory.
Second, DDK is building a completely new factory, DDK VN2, in the Minh Hung Industrial Park with size of 82,549.20 m2 and a capacity plan of 15 million saddles. This new factory, modeled on the DDK VN1 factory, will have an initial production capacity of 6 million saddles and will come online in August 2022.
While DDK will continue to struggle to meet near-term demand, the situation will abate somewhat in the coming months, and be fully resolved by the end of 2022.
For additional information contact:
Tom Petrie – DDK North America Area Manager - 1.970.420.4663
