German tire maker Schwalbe plans to move entire production to Vietnam

German tire brand Schwalbe announced Wednesday that it will manufacture all tires and tubes exclusively in Vietnam in the future due to the tense situation in the bicycle industry.

"Schwalbe is strategically realigning its production and will manufacture all tires and tubes exclusively in Vietnam in the future. Thanks to bundled production, the state-of-the-art site there offers volume and logistics advantages for all Schwalbe customers,” the company said in a statement.

Schwalbe, which historically has split tire and tube production between its factories in Indonesia and Vietnam, will retain mold making, mixing operations, research & development and administration in Indonesia.

The firm said it retains the option to resume manufacturing in Indonesia.

“We are positioning ourselves for the future in the best possible way and we are pooling our strengths in Vietnam. Enormous investments have been made there in recent years. With new factory buildings and machinery, the site offers the best in production,” said Frank Bohle, CEO of Schwalbe.

Since the Schwalbe brand was founded in 1973, all tyres and tubes have been produced together with Hung-A in Asia. The two family-owned companies are linked by a joint venture.