In 2024, Velo entered a new phase as Ann Chen took over as CEO, marking an important transition for the company. We spoke with the new CEO about her role and Velo’s plans for the future.
Talking about saddles, grips, and handlebar tapes in Taiwan inevitably leads to the name Velo. Founded in 1979 by Stella Yu, the company has evolved from a local manufacturer in the Taiwanese city of Taichung to a global leader when it comes to bicycle components, with a full production capacity of up to 12 million saddles annually, along with up to 20 million grips and up to 4 million packs of bar tape. “In total, we have five production centers in Taiwan, China and Vietnam, with a workforce of around 1,000 employees,” CEO Ann Chen summarizes. Having been a long-time employee at Velo, Chen served as Stella Yu’s right-hand woman for years. But in 2024, the company’s 45th anniversary, she followed in the founder’s footsteps and took over her position.
For Chen, stepping into the role of CEO is both a personal milestone and a continuation of a shared vision. Having worked closely with Yu for 17 years, she describes their relationship as one built on trust, mentorship and shared ambition. “There are so many things I’ve learned from Stella that it’s hard to write them all down,” she says. “Stella sometimes tells people that I share quite a few similarities with her,” she adds, adding that—despite her formal retirement from daily operations—Yu continues to provide guidance and oversight at Velo. “She offers us valuable advice and opportunities for improvement. Most of the time, she agrees with my decisions—I guess I haven’t made any wrong ones yet,” she says with a smile.
With the bicycle industry facing economic uncertainty, high inventory levels and shifting consumer demands, Yu’s continued involvement provides stability and reassurance to Velo. Regardless of the current challenges, Chen remains confident in her company’s long-term strategy. “We have no ability to change the market situations because this is a global problem,” Chen explains. However, she sees this period as a chance to strengthen the company from within. “Less stress in production means opportunities and time for improvements. We can rethink and map out our company’s long-term plan. Since cycling is considered to be green transportation, we truly believe this industry will not disappear. As long as we keep up our work, we believe that the future will still be good.”
The bicycle as a green mobility alternative is, indeed, a key topic for Chen, as sustainability plays a crucial role in her plans for Velo’s future. This became evident at the last Taipei Cycle Show when Chen, during a keynote on the company’s strategy, dedicated a significant amount of time to discussing sustainability. “We firmly believe that ESG is not just a trend or fad but a responsibility we must uphold consistently because we have only one planet,” Chen explains. In fact, Velo has also significantly focused on diminishing its environmental impact over recent years. The company is a member of the Bicycling Alliance for Sustainability and has meticulously calculated its internal CO2 emissions per the ISO 14060-1 standard, a benchmark for greenhouse gas quantification. Additionally, they have implemented recycling technologies such as form recycling into their production processes. “It’s about taking small steps towards the bigger goal,” Chen states.
Alongside its commitment to sustainability, Chen and her team are also focusing on structural expansion to ensure Velo remains competitive in a changing market. As part of this strategy, the company has opened a new production facility in Vietnam’s Binh Duong province to increase efficiency and enhance its global supply chain. “The Vietnam factory is an important step for Velo to optimize our supply chain and expand our production capacity,” explains Chen. The facility allows Velo to respond more flexibly to market demands while also making manufacturing more sustainable. “By strengthening our presence in Southeast Asia, we can offer better logistical solutions for our customers while also reducing our carbon footprint through shorter transportation distances,” she adds.
A new era at Velo has begun, and Chen is prepared to steer Velo into this new chapter. “I believe it’s the right moment for me to embrace the leadership mindset at Velo,” she says, not without mentioning the importance of Stella Yu’s lifetime achievement: “Stella’s vision and dedication brought Velo to where it is today, and it’s now our responsibility to build upon that legacy.”