The last major bike factory in the Netherlands is closing after Accell, the parent company of Batavus, Sparta and Raleigh, announced it is shifting production from Heerenveen to Hungary.

Around 160 jobs will be lost in the Frisian town, where Batavus was founded in 1906, as a result of Accell’s decision to reposition the plant as a “strategic hub” focusing on design, engineering and support.

Currently the Heerenveen factory produces around 20% of Accell’s bicycles. But the company has struggled financially in recent years and was bought out in 2022 by a consortium of venture capitalists led by KKR and Teslin, who delisted it from the Amsterdam Stock Exchange.

CEO Jonas Nilsson said: “Decisions that lead to redundancies are never easy, and we recognise the impact this has on our people.

“We will do our utmost to inform and assist affected employees in the best possible way.

“In our new set-up, we will be able to better leverage our scale and capabilities across production, logistics and operations, supporting our full portfolio of iconic brands.”

Babboe recall

Accell has also been hit by problems with the Babboe cargo bikes, which were found to be prone to breaking during transit.

The company recalled around 10,000 bikes and paused all further sales in 2024, after 6,000 people reported defects with their Babboe models to a website set up to handle legal claims.

The safety regulator NVWA and the public prosecution service launched a criminal investigation into Babboe after staff were accused of misleading inspectors and hiding evidence of broken frames during an inspection in 2021.

Bicycles were in demand during the coronavirus pandemic, but manufacturers were unable to obtain parts because of supply chain issues. When the lockdown ended Accell was left with a surplus of bicycles as sales fell again.

Its revenues dropped by 22% in 2024 to just over €1 billion. The company also recently announced plans to close its factory in Manisa, Turkey and is cutting the number of warehouses from 85 to 28, with a long-term goal of just five facilities.

Low production

The Netherlands may have an estimated 23 million bikes for its 18 million inhabitants but Dutch manufacturers actually make very few two wheelers, according to figures published by European statistics agency Eurostat in 2023.

In 2022, 14.7 million bikes were built in the European Union, a 10% rise on 2021, but the Netherlands came in ninth place on the list of EU manufacturers.

The Netherlands does still have a small number of specialist bike makers focusing on racing and mountain two-wheelers.