Comments Off on Takeover of Klaassen Parts by Van Raam
As of September 1, 2022, LEVA-EU member Van Raam will take over Klaassen Parts. The company continues under the name Your CNC Solutions. Your CNC Solutions will focus on both serial and single-piece turning and milling work.
Personnel and machines will move to Euroweg 12 in Varsseveld before the end of this year. With this acquisition, Van Raam has taken a great step in expanding its sister companies.
In addition to Klaassen’s current machinery, Your CNC Solutions will utilize Van Raam’s existing machines and professionals. Your CNC Solutions will continue to supply Klaassen’s current customers.
Dominik Tempels is the new point of contact in the form of company manager. Guido Klaassen will focus on innovation and new technical possibilities.
Left: Guido Klaassen; right: Jan-Willem Boezel (Technical Director, Van Raam)
LEVA-EU member Hirschvogel is one of the world’s largest motor vehicle parts suppliers. Now, the auto giant shifts its focus towards ‘green business’
In its move to compete in the green and light mobility market, including that of bicycles, the business has dedicated 67% of its 2021 investment into such sectors; this equates to approximately €174 million. For context, the group consolidated sales of €1.25 billion in 2018 and employs over 6,000.
This new focus should come as no surprise after the group revealed some 70% of orders for parts won in 2021 were associated with ‘green businesses’, with this trend continuing into 2022.
“The focus is on green business, the “green” business around CO2 – emission-free mobility concepts. In order to ensure growth and employment at all locations for future generations as well, we are currently aligning the components business in the automotive sector with high pressure towards e-mobility and drive independence. At the same time, we would like to grow through company investments in related technologies and markets,” says Jörg Rückauf, the company CEO.
Production capacity will almost double from 1,200 units per month to 2,200. This can be attributed to the installment of a second production line and the creation of additional storage spaces.
After establishing a production facility in Genas in mid-2020, foldable electric bicycle manufacturer, and LEVA-EU member, Eovolt has ridden the two-wheeled wave. In the first year, sales saw an increase from 3,800 units, to 9,500. As growth shows no sign of slowing down into 2022, it is unsurprising that the company continues to upscale its manufacturing presence.
An investment of €500,000 has secured the additional production capacity. Baptiste Fullen, Eovolt co-founder, shares, “The expansion of our production unit is part of a global company development project. We want to accentuate our local approach in order to lock our production chain and to be more responsive and more flexible.”
The Federal Reserve Bank of New York, publisher of the global supply chain pressure index (GSCPI), has revealed the impact of the Russian invasion of Ukraine in its latest release.
The invasion added additional pressure to a global network that was already under strain. Pressure is now at an all-time high since the index’s creation in 1997. The scenario continues to develop as trade and payments with Russia and Belarus rapidly decrease in line with Western bank sanctions. This turn of events is a stark contrast to early 2022 predictions that pressure was beginning to equalise following Covid-19 disruption.
The GSCPI summarises 27 variables that impact global supply chain functioning, including measures such as cross-border and manufacturing costs. A score of 0 indicates that pressure is at an average level, and any positive increase indicates how many standard deviations the index is above average value, and vice versa. The value currently stands at 4.
In the LEV industry, where a product as a whole may be completely dependent on specific, independently sourced parts, this pressure increase could force some manufacturing to a standstill. As the global scenario continues its progression, the impact on the supply chain will be closely observed by many.
Comments Off on Does record price aluminium threaten the bicycle industry?
Nieuwsfiets.nu notes that the raw material prices of aluminum have risen to their highest level in 10 years. On top of that, energy prices are increasing. With the bicycle industry heavily reliant on aluminum, will there be knock on effects?
Thanks to a high demand for aluminium, some environmental factors, and the continued impact on logistics and labour of the coronavirus pandemic, the London Metal Exchange price for aluminium has in a number of months crept up from €1.31 to €2.26 per kg. This price level is not expected to fall in the near term.
This is compounded by high energy prices. Niewfiets.nu takes an example from the Netherlands, in smelter Aldel, who has recently had to move to reduced production. The price for a megawatt-hour of gas has risen to €300, compared to before the corona crisis when that price was about €20. The production of a ton of aluminium therefore costs Aldel €4,500 in electricity costs, while the market price for a ton of aluminium is currently €2,500. is. Aldel is of course not the only aluminium smelter facing this.
Such a situation is already having an impact on manufacturing, and the article considers how this might impact product prices in the bicycle industry, where many frames and components are made of aluminium. With a boom in product demand, and climbing container prices, Niewfiets.nu reached out to the industry to ask if they believe the market suffer another price increase. The replies were few, with the Chinese contacts being the most responsive. There is word that raw frame tube prices have already doubled since April and that this will be noticeable in the market.
As winter progresses, high energy prices will be more keenly felt. It has also been reported that some factories in China, including those in the bike trade, have experienced shutdowns due to electricity shortages. This will be felt down the line in lead times and availability of components.
The publisher mentions that the price increases of the raw materials will have a limited effect on the final price of bicycles. It is the very high prices of container transport that has the greatest current influence. Ultimately, the combination of all these factors means that bicycle manufacturing is certainly facing a cost squeeze.
