News / Taiwan / economic_daily
Shimano Increases Stake in KMC Chain to 4.75% via Private Placement
Producer Manufacturing · Industrial Machinery · economic_daily · 2026-10-14
5306
Global bicycle component leader Shimano is set to increase its stake in KMC Chain to 4.75% through a private placement, strengthening their long-term supply chain partnership.
What Happened
Strategic Investment: Global bicycle component giant Shimano has announced plans to increase its investment in Taiwan-based KMC Chain through a private placement of 4.5 million shares. This move will raise Shimano's stake from 1.35% to approximately 4.75%, making it the fourth-largest shareholder in the company and cementing a 40-year partnership.
Operational Synergy: As KMC serves as Shimano's sole overseas chain manufacturing partner, this capital alliance strengthens supply chain integration and expands their collaboration from OEM to ODM and market distribution. Both companies aim to deepen their cooperation in product development and manufacturing technology, particularly for e-bikes and high-end drivetrain components.
Financial Performance: KMC has shown signs of operational recovery, with revenue for the first three quarters reaching NT$4.097 billion, a 12.38% year-on-year increase. The company plans to hold an extraordinary general meeting on November 5 to seek shareholder approval for the private placement to bolster working capital.
Market Outlook: Shimano's decision to increase its stake is viewed as a positive signal for the bicycle industry's recovery. While a full market rebound depends on terminal demand, this strategic alignment underscores the importance of supply chain stability and long-term product development for both industry leaders.