In the bustling factory of Alpha Carbon Technology Limited at Gazipur’s Sreepur upazila, around 365 workers have started assembling carbon fibre bicycles under the guidance of around two dozen technicians from China and Taiwan. These efforts represent a notable milestone for Bangladesh as it becomes the pioneering South Asian nation to produce high-value carbon components for bicycles. Meghna Group, in a joint venture, is pioneering the manufacture of carbon fibre bicycle components for export — a strategic move poised to help Bangladesh diversify its export base reducing its heavy dependence on ready-made garments.

The factory, established through a collaboration between Meghna Group, the largest bicycle manufacturer and exporter in Bangladesh, and partners from Germany and Taiwan, currently operates with a production capacity of 50,000 frames, 100,000 forks, and 240,000 seat posts annually. With export demands on the rise, Alpha Carbon Technology Ltd has already decided to double the factory’s capabilities to meet the growing orders by July next year.

The global carbon fibre bike market, which remains relatively modest at around $3 billion in 2023 in stark contrast to the traditional bicycle market of over $80 billion, is expanding rapidly due to its remarkable attributes, including durability, lightweight construction, superior strength, and corrosion resistance. Moreover, consumers in the Western markets are increasingly favoring eco-friendly carbon fibre bicycles over aluminium or steel alternatives.

The export value of a carbon fibre bicycle starts at no less than $1,000, with retail prices often exceeding $2,000 per unit. With government support, Alpha Carbon could potentially export at least $100 million worth of carbon fibre bicycle products per year, expressed Jabed Hossain Khan, general manager of the company. However, achieving this goal would require government assistance to reduce the 60% import duty on the essential raw material, carbon fibre, imported from Japan. Meghna Group chairman has called for a 10-15% government incentive over the next three years to enhance competitiveness with manufacturers from other countries since he is confident that the company will achieve as a carbon fibre component manufacturer within a few years.

Source: The Business Standard