Establishment

With cycling experiencing a boom, Canada’s small bike industry couldn’t supply the demand. Consumers wanted new, sleek ten-speeds – more like the expensive racing bikes produced in Europe.

Sekine was in a position to provided bikes that approached that quality, but at a lower price. In 1971 Acklands Ltd. Of Winnipeg began importing and distributing Sekines. H.C. Paul and Co., a subsidiary that oversaw the leisure products division, saw a dramatic increase in sales.

Imported bicycles into Canada had tripled in the previous three years, reaching a combined total of 450,000 last year - that he was having trouble getting deliveries on the 25,000 or so Sekine bicycles he was distributing through western Canada.  So he pitched the idea to the Sekine people — why not start a plant and make the bikes in Canada?

Another key figure was Bert Luckhurst, of Resource Development Associates in Winnipeg, business consultants for the Oo-Za-We Kwun, who suggested the abandoned Rivers air force base, now home to the a training centre tor Aboriginal Manitobans, as the site for the plant.  Mr. Luckhurst, at the time, told a Free Press reporter that: “We think the idea should work well. A good percentage of the employees — there'll be about 40 to start with, but this should increase to 100 once actual manufacture gets underway next year — will be Indians in the area. Employment and training for those who wish it is the point of Oo-Za-We-Kwun. The Sekine people are expected to bring about three key executives to work in the plant, and some engineers to get it started. After that, they'll rely on local labour.”

Negotiations went on for about a year, with Sekine executives making several trips lo Canada lo look over the site.  Somewhere along the way, DREE (The Department of Regional Economic Expansion) was approached for a  $450,000 incentive grant to help Sekine renovate an old hangar into a $1 million factory.

Apparently one feature of the set-up that appealed to the Japanese was that the plant would be in a "controlled environment," rather like an industrial park, which helps foster the Japanese idea of workers, being treated more like a family than is the case in North America.

The availability of 400 unoccupied houses adjacent to the facility which would be leased to Sekine personnel "at modest rents," was another inducement for the company to come.

In October of 1972 extensive negotiations took place involving Manitoba Economic Development officials, Mr. Paul, and Sekine representatives. There were visits to Japan and the Sekine executives visited the Oo-Za-We-Kwun Centre. Sekine was at that time looking at several options.

On Nov. 22, 1972 the Winnipeg Free Press reported that Frank Price, the manager of the Oo-Za-We-Kwun native training centre in Rivers announced an agreement in principle to locate the enterprise on the abandoned Forces base close to Rivers.

Initial production was projected to be about 50,000 bicycles a year. At first, the bikes —  three, four and ten-speed models — were only assembled at Rivers, with parts shipped from Japan.
"The main advantage at first will be that parts will be available for servicing," said a spokesman at H. C. Paul at the time. 
Eventually, the idea was to have Sekine manufacture the bikes from scratch at Rivers, and to supply a North American market that could reach three million machines annually.
In April of 1973, Sekine Industries, Nagase and Co. (and import-export company). AndH.C.Paul Co. formed the joint venture Sekine Canada Ltd. And announced plans to build a $1.2 million plant in an aircraft hangar on the Oo-Za-We-Kwun Centre.

Over that summer equipment and engineers arrived from Japan and the huge hangar was converted into an assembly line, offices, and storage facilities.

Soon after the announcement of the deal there was an interesting wrinkle in the story. Osmond Mellon, who hoped to manufacture bicycles in Winnipeg, claimed that some proposed changes on bike safety regulations were designed to favour the Japanese company. It seem that Sekine was one of the few companies that could meet certain of the new regulations.

The regulations were proposed by Professor David Anderson of the University of Winnipeg who was commissioned by the Provincial Government. He proposed a "double braking system" as a safety feature. He denied any political motivation and claimed he had never heard of Sekine when making his proposals. Mr. Mellon said the innovation is not used in Europe, long accepted as leaders in bicycle engineering.
 
Minor controversies aside, the first 250 bicycles were shipped on Monday, August 20th.
September 8th, 1973 saw the grand opening with a staff of 43 Aboriginal employees and 10 Japanese technicians. Officials toured the plant. Invited officials attended a reception at the former Officer’s Mess Building. Sekine President N. Sekine attended and gave a speech.

Long-term plans included a growth in the work force to 200 employees with sales of $20 million a year. As proposed, the plant was a joint venture with the newly formed Seking Canada Ltd. manufacturing the bikes, Nagase and Co., a marketing the bikes in the U.S., and Winnipeg firm H.C. Paul, handling marketing in Winnipeg and Canada. Rivers would be home to the North American headquarters of Sekine Canada. Ltd.


 Opening of Sekine Bike Plant at Officer's Mess. At the Podium -  the Manager at Sekine,  beside him, Frank Taylor, and a Japanese Representative

The Grand Opening in Rivers was presided over by Len Evans, Manitoba's Minister of Industry and Commerce and Nobuyoshi Sekine, the President of Sekine Canada.



Mayor Frank Taylor - at the opening of Sekine Bike Plant

Prior to the opening senior officials of the Manitoba Department of Industry and Commerce had visited Japan to outline marketing and feasibility studies. The Federal Department of Economic Expansion provided a $350000 incentive grant with the start of production.

Along with the aggressive marketing campaign came news of the promised expansion. H.C. Paul, Sekine board chairman announced that a 4.2 million dollars expansion would see seventy-five jobs added to the workforce. Aboriginal workers made up 75% of the workforce, and Dr. Ahab Spence, Manitoba Indian Brotherhood president was appointed to the Board of Sekine Canada.