Dorel moves assembly offshore

North American bike manufacturing and assembly suffered a blow recently, when Dorel Industries announced it would be moving a bike assembly operation from the United States to Asia.

Based in Montreal, Dorel owns a number of bicycle brands, including GT, Schwinn and Cannondale.

Labelled as a cost-cutting measure, the move should help Dorel remain competitive in pricing its bicycles in the retail market.

Additionally, Dorel will be moving a research-and-development facility from Bethel, Conn., to a new facility in Wilton, Conn., approximately 24 miles away. Dorel has said that following the decisions, approximately 100 people will lose jobs.

Dorel expects to save $6 million a year.

Sugoi, a subsidiary of Dorel, recently bought mountain bike clothing brand Sombrio. The value of the acquisition was not revealed, but will allow Sugoi to expand market reach. Traditionally focussed on road and triathlon clothing, Sugoi will be well complemented by adding the gravity-driven style of Sombrio.