X-Fusion closing US office as new Taiwan factory comes on line

By Toby Hill

MONTEREY, Calif. (BRAIN) — X-Fusion is closing its U.S. headquarters in California and moving customer support to an outside facility in Reno, Nevada — a move necessitated by the costly construction of a new dedicated factory for the suspension brand in Taichung, Taiwan.

X-Fusion is the suspension division of Taiwan frame manufacturer A-Pro, and was originally housed in the same factory alongside A-Pro’s aluminum frame production. But as A-Pro added new manufacturing capabilities, including carbon frame and rim production, X-Fusion’s space and capacity came under pressure, general manager Joel Smith told BRAIN during Thursday’s opening day of the 2017 Sea Otter Classic.

“Every time I’d go there we were getting pushed into a smaller and smaller corner. It was easy to see even three or four years ago we had run out of space,” he said.

In addition to space concerns, X-Fusion wanted to become a more vertically integrated manufacturer. Historically, the bulk of its fork components have been sourced externally and assembled by X-Fusion, but the new factory will allow more of those parts to be produced in house.

“We need to be more vertically integrated to be competitive,” Smith said.

But the expense of building the new factory, where move-in …read more

Via:: Bicycle Retailer and Industry News