Owners of vintage bicycle brand Pegas plan EUR 3 mln plant in Romania

Atelierele Pegas is planning to invest at least EUR 3 million to build a bicycle factory in Romania, to capture the more eco-friendly attitude of the market and public administration.

Atelierele Pegas sells between 15,000 and 20,000 bicycles per year, and in 2020 its sales rose by 20-30%.

The discussions with investors are still open, and the factory's construction could start at the end of this year, explained Andrei Botescu, founder Atelierele Pegas. The ideal location would be Zarnesti (near Brasov), a place with tradition in the production of bicycles in Romania - where Pegas bicycles were produced in the past as well, Ziarul Financiar reported.

Atelierele Pegas took over and revived the Pegas bicycle brand, an iconic local brand during the communist regime. The company's founder Andrei Botescu currently holds only a minority stake as the majority shareholder is local entrepreneur Iulian Stanciu, the CEO of online retailer eMAG.

Atelierele Pegas had a turnover of RON 10.7 mln (EUR 2.2 mln) and losses of RON 7 mln (EUR 1.45 mln) in 2019, according to public data.

Romania is one of Europe's biggest bicycle producers, with three factories that produce over one million units per year. A large part of them are made under private label for French sports retailer Decathlon.

(Photo source: Facebook/Bicicletele Pegas)