Unstoppable French Bike Manufacturing - MFC!

By

19 Nov, 2015

Two Years after being taken over by Intersport, the story of the French factory established in West of France has become a strong case-study in demonstrating that bike industry contributes to achieve European reindustrialization and job creation’s targets. And building on a smart and inclusive long-term strategy plan that includes the acquisition of the iconic SUNN brand, the French manufacturer can see a shining future. The Director of Cycling for Growth Initiative, Nicolas Urien, was recently invited by Manufacture Française du Cycle (MFC) one of the newest members of Cycling Industry Club to visit their premises in Machecoul (France). Machecoul’s factory produced bikes since 1925 and is part of the European cycling legend for many cycling fans : the legendary “Gitane“ brand was produced here for more than 70 years and among the greatest French and European cyclists (Jacques Anquetil, Bernard Hinault, Lucien Van Impe, Laurent Fignon) have been riding on bikes made in Machecoul. Close to being shut down in 2013, the factory has ushered in a new era after being purchased by Intersport, the international sporting goods retailer. Since then, the factory has been renamed “Manufacture Française du Cycle” (MFC) and mainly produces a wide range of bikes for mass-merchandisers (ex. Intersport, Go Sport, Sport 2000) and supermarkets (ex. Auchan, Leclerc, Cora, Casino, Intermarché). After two years, the results have exceeded all expectations: in 2013, the plant produced 131 000 bikes. In 2014, this figure reached 245 000 and the aim is to make 350 000 bikes for the year 2015. The turnover of the factory has triple to reach approximatively 59M€ on this last financial period. And, above all, MFC has now a staff of 225 full time jobs (up from 178 at the time of the take-over) and 117 fixed-term contracts. All indicators are green for MFC.

Photo credit: Padelis Frantzis

Investment & diversification leading to relocation and growth!

“Our goal is to ensure a long-term growth and a constant job creation. Investments and diversification are decisive to achieve such objectives“ said CEO Yves Salaun. Since the take-over, 3,6M€ have indeed been spent to modernize the factory. In addition, a new 6.000m2 storage building will be inaugurated beginning of January 2016 where 30.000 bikes will be stored to allow the automatic reasortment of Nakamura branded bikes (approx. 50% of the production) and provide more supply chain flexibility to Intersport’s local shops.

Photo credit: Padelis Frantzis

MFC has also recently launched a new state-of-the-art painting line in order to relocate in France part of this activity that was performed outside Europe and, therefore, increase local jobs and enhance supply chain flexibility (as a first step, in 2016 , 150.000 frames per year will be painted in Machecoul and the goal is to reach 70% of the production). Due to such investments, MFC has strongly reinforced its position on producing bikes for mass-merchandisers and supermarkets but is also looking to intensify its sells to new EU and non-EU countries as well as market segments said Sells and Procurement Director Pascal Perrocheau. In practice, the company has set-up a wide and smart plan that includes in particular a relaunch of the legendary SUNN brand dedicated to the specialized dealers network and the increase of E-bikes’ production (approx.15.000 E-bikes will be produced for the year 2015). Furthermore, MFC has demonstrated outstanding inventiveness in implementing a highly collaborative organization and production process. “It is key for us to involve all colleagues as deep as possible in the decision process to identify and reduce any constraints that could impact our productivity to ensure a constant high level of quality“ said Industrial Director David Jamin. All these factors result in an astonished success story that demonstrates, again, European bike industry’s growth potential, even on mass-market. A story that echoes new SUNN’s slogan, proudly displays on MFC factory wall: unstoppable!

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The Cycling Industry Club (CIC) and CONEBI have recently launched the Cycling for Growth Initiative to extend the influence of the cycling industry as a recognized voice at the EU level. New Project Director Nicolas Urien has been appointed to lead the project on behalf of both organizations. The main objective of the Cycling for Growth Initiative is to show how the cycling industry will deliver growth within the European Union and create the conditions to unlock funding in European public expenditure on cycling and e-cycling. In this respect, a survey on EU funds for cycling businesses has been recently launched. Please note you can still provide your answer in completing a very short questionnaire here. Learn more about CIC membership here.