Firefox Moves from Sri Lanka to Bangladesh
Firefox is said to close its facility in Sri Lanka. - Photo: Bike Europe
Firefox is said to close its facility in Sri Lanka. Although the exact timing of the closure is not known, the plan to close down the Sri Lanka plant began about a year ago.
Partial production continued for some time to clear the pending orders but it eventually closed down about a month ago, according to industry sources in Sri Lanka.
Denies of an all-out closure
However, Firefox Lanka denies an all-out closure of the Sri Lanka plant. But after contacting the plant in Colombo, it was confirmed by a source that the plant has closed and that the company is looking for buyers among the Sri Lankan bicycle makers to sell machinery. This was confirmed by one of the local bicycle producers.
Advantages of Bangladesh
With Sri Lanka's 0% duty status gone for imports in Europe after allegations of human rights violations while ending the civil war in the country, Sri Lanka made bikes apparently are no more an attractive proposition. Moreover, the European Union is conducting an anti-circumvention investigation into imports of bicycles from Sri Lanka, Malaysia, Indonesia, and Tunisia.
Meanwhile, Bangladesh retains its 0% import duty and remains attractive for investors targeting the EU market. "The advantages Bangladesh had to offer made the move necessary," said Firefox owner Pradeep Mehrotra in an email response. Next to Firefox a few more companies from the Far East are planning to move to the Bangladesh port city of Chittagong.
Production and capacity
Firefox' new factory is being set-up in the Chittagong Export Processing Zone (CEPZ) of the port city of Chittagong. Pradeep Mehrotra said, "The Bangladesh plant has been in the making for one year." Production is to start in the first quarter of 2013 while the capacity is said to be bigger than the Sri Lankan plant.
Partial production continued for some time to clear the pending orders but it eventually closed down about a month ago, according to industry sources in Sri Lanka.
Denies of an all-out closure
However, Firefox Lanka denies an all-out closure of the Sri Lanka plant. But after contacting the plant in Colombo, it was confirmed by a source that the plant has closed and that the company is looking for buyers among the Sri Lankan bicycle makers to sell machinery. This was confirmed by one of the local bicycle producers.
Advantages of Bangladesh
With Sri Lanka's 0% duty status gone for imports in Europe after allegations of human rights violations while ending the civil war in the country, Sri Lanka made bikes apparently are no more an attractive proposition. Moreover, the European Union is conducting an anti-circumvention investigation into imports of bicycles from Sri Lanka, Malaysia, Indonesia, and Tunisia.
Meanwhile, Bangladesh retains its 0% import duty and remains attractive for investors targeting the EU market. "The advantages Bangladesh had to offer made the move necessary," said Firefox owner Pradeep Mehrotra in an email response. Next to Firefox a few more companies from the Far East are planning to move to the Bangladesh port city of Chittagong.
Production and capacity
Firefox' new factory is being set-up in the Chittagong Export Processing Zone (CEPZ) of the port city of Chittagong. Pradeep Mehrotra said, "The Bangladesh plant has been in the making for one year." Production is to start in the first quarter of 2013 while the capacity is said to be bigger than the Sri Lankan plant.
