Circular Economy has been a popular term in recent year because the rise of the environmental awareness globally. If you google “circular economy,” there are tons of the definitions that you can find online.

At Velo, we define circular economy into two simple categories — external and internal. Internally, Velo’s circular economy emphasizes recycling, reusing, reducing and redesigning. This involves recycling materials that can be repurposed, minimizing unnecessary packaging and resource consumption, and redesigning products with ESG (environmental, social, and governance) principles in mind. Over the past decade, Velo has been dedicated to achieving these goals. We are proud to share our accomplishments and make our progress known.

This year, alongside our internal efforts, we have strengthened our external collaboration with SRAM. We believe that expanding the circular economy in this way creates equal value and a mutually beneficial outcome.

We believe the circular economy should maintain equal value. For example, recycled waste should be used in products of the same value rather than downgraded into secondary products. Otherwise, the depreciation in value is not aligned with our vision.

How can SRAM and Velo work together?

As we all know, SRAM is a renowned supplier of bicycle components, with its primary production facilities located in Taiwan. SRAM’s mission is to create products and experiences that inspire cyclists. One of SRAM’s most well-known brands is ZIPP, which specializes in producing lightweight carbon components including wheelsets, handlebars, stems and seatposts.

Carbon fiber components have gained significant popularity in the bicycle industry due to its lightweight properties and performance benefits. However, the waste and losses generated during the manufacturing of carbon fiber products can pose challenges for recycling. Although SRAM already had an excellent system for recycling carbon waste, questions remained: Where do these recycled materials go? Did they retain the same value in production? These issues were addressed through their collaboration with Velo.

With over 45 years of experience in the bicycle industry and the production of 12 million saddles annually, Velo has been dedicated to exploring alternative materials that can replace current ones to help reduce the carbon emissions of its products.

This collaboration between two industry leaders led to a solution that combined SRAM’s carbon fiber waste with nylon to create Velo’s performance-driven saddles. This new material has undergone testing and has been verified for use in Velo’s production.

Both SRAM and Velo have successfully maintained the value of the materials while reducing carbon emissions together. A key factor in this achievement is the proximity of their factories in Taiwan, located less than 20 km apart. In addition, Velo’s performance saddle made with SRAM’s recycled carbon fiber reduced carbon emissions by 380 to 785 grams, solely due to the use of these fibers!

SRAM and Velo share a common goal in ESG, striving to grow together while making progress in their individual efforts. In the industry, they both aim to establish a circular economy model in the production of bicycle parts and accessories.