Shimano Inc., a 99-year-old maker of brakes, gears and components, is poised to take advantage of the surge in demand for bicycles across the globe as people embrace new modes of transportation due to the coronavirus pandemic.
As the provider of parts to Giant Manufacturing Co., Merida Industry Co. and other brands, Shimano commands a dominant presence in the global market for bicycle components. That gives Shimano’s CEO Yozo Shimano, 71, clear visibility into demand, which is picking up across the globe.
Shares of the Osaka-based manufacturer have surged since mid-March, touching a record and expanding Shimano’s market value by $5.6 billion (¥604 billion). Investors are betting that more and more people will turn to bicycles as a way to avoid congested public transportation as France, the U.K. and other countries start to ease lockdown measures. London is enacting plans to expand bike lanes and sidewalks to make it easier for citizens to get around, while Berlin erected billboards urging the public to switch to bikes for short commutes.
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