As a supplier of aluminum and carbon frames to many well-known bicycle brands, Astro Tech has been hit by the current woes of the bicycle industry. Despite this downturn, the company has been investing in both a new factory and actual production methods, so it is ready to fulfill orders as soon as those come back in.
As we all painfully got to know, large parts of the global bicycle industry have been plagued by a ruinous trifecta of high inventory levels, low liquidity, and low demand for the last two and a half years. The resulting discounting has eaten into margins along the entire supply chain, reducing profits and liquidity as a consequence. But on a mid- to long-term the outlook for the bicycle industry remains very promising, so the big question is: When will the tide turn and when is business going to return to acceptable levels in terms of volumes and profitability? While the answer to this question remains open for now, Astro Tech is leaving nothing to chance in making sure it is ready to react to a rebound in demand as soon as this actually happens.
One big advantage for Astro Tech is the fact that one recent trend within the global supply chain very much is the company’s friend. As an early mover, Astro Tech’s founder Samuel Hu heavily betted on Vietnam when looking to less expensive alternatives to Taiwan, setting up a first factory in the Southern Binh Duong province in the year 2000 and following up with a second facility in 2016. Despite the ongoing challenges Astro Tech has been pushing forward with the construction of its new plant in Vietnam to replace the original one. Spanning a total area of 42,000 square meters, this new facility has been planned based on ESG principles, featuring plenty of solar panels on its roofs and state-of-the-art automated equipment integrated with MES, ERP and QCS systems.
Mass production in Astro Tech’s new plant is due to begin in the second half of 2026. The production capacity for aluminum frames, carbon fiber frames and painting is ready to be expanded to meet anticipated market demands during a recovery. As a response to the growing demand for EUR1 trade agreements from European buyers, Astro Tech is actively cultivating a robust network of reliable local suppliers to strengthen supply chain resilience and boost localized production capabilities. The fact that big Taiwanese companies such as the Giant Group and Fritz Jou Manufacturing have been investing heavily in Vietnam as of late adds to this momentum, as Show Daily got to witness first hand on a factory tour following last year’s Taipei Cycle Show.
Since qualified welders are hard to find and consistent quality is a must for upper-scale e-bike frames, one key element in Astro Tech’s way forward is automation: the company has found ways to industrially produce bicycle frames made of thermoplastic carbon by using a thermoforming process proven in aircraft construction. The same basic principle is about to be applied to the construction of alloy frames in the near future as well. The fact that Astro Tech has joined electronics specialist Darfon Group in 2021 to speed up the development of integrated, smart e-bikes has further added to its innovative power. Thus things have been put on the right track to make sure that Astro Tech can scale up its production as soon as demand sets back in and order books start filling up.