Higo has experienced enormous growth in recent years. Ten years ago, there were around forty employees on the payroll; today there are more than eight hundred. The expansion is largely due to the intensive collaboration with A&C Solutions, which has been exclusively distributing the European market with high-quality connectors for e-bikes from Belgium since 2014.
Quality requirements
“Many of the available connectors on the first generation of electric bicycles were not waterproof and shockproof. There were a lot of complaints about e-bikes that suddenly stopped working. We were asked: ‘Can you help us with a connector that meets all quality requirements?’ At the end of 2013, we came into contact with Higo, which was already making its mark in Asia, but also wanted to break through in Europe, while we needed a strong Asian production partner. Our collaboration started quickly afterwards. We first focused on the Benelux, but soon discovered that almost all players in Europe were struggling with the same problems,” says CEO Franky Vanlerberghe of A&C Solutions.
Tailormade
His company and Higo grew into a successful tandem, with Higo supplying the domestic market in Asia and A&C Solutions focusing on manufacturers of bicycles and other components in Europe with technical support from Higo’s engineers. The majority of e-bikes on the global market now have one or more Higo connectors mounted, for example for connecting a motor, battery, display or lighting. Approximately 80 percent of the connectors that Higo produces are tailor-made for manufacturers and specific models. “The advantage of A&C Solutions is that we keep stock in Europe and take care of the logistics. We do quality checks and guarantee just-in-time deliveries.”
Approximately 80 percent of the connectors that Higo produces are tailor-made for manufacturers and specific models”
New location
In order to realize its ambitions, Higo has been working on a new facility in Changzhou Suzhou, China, a two-hour drive from Shanghai, for some time now. The first phase, which will be ready early next year, consists of a production facility of fourteen thousand square meters, sleeping accommodations for employees and an office building of twenty thousand square meters. The R&D and quality assurance departments will be located in the office, among other things. The next phase will see further new construction, which will give Higo a new, modern complex of seventy thousand square meters.
Ready for the future
“Higo is known for doing everything itself. We also develop and manufacture the connector contacts in-house. That is an advantage, because it makes us flexible and allows us to quickly anticipate the demand from our customers. The bicycle industry is a rapidly changing market; every year a brand wants to present a new model. That requires different solutions each time. Now, with the arrival of the new complex, we can consolidate our position for the future and prepare ourselves for what the European market will demand of us next,” says Vanlerberghe.
Automation
The new facility has a green and sustainable character, including its own energy generation and low-energy machines and tools. Above all, Higo can work more efficiently in the new building through far-reaching automation of production and the installation of automatic quality controls. “For example, we will soon have automated warehouses with robots that drive around to move goods. All those kinds of things make us future-proof and competitive. Our standard is equal to the level of the automotive industry.”
For example, customers will soon notice that Higo can meet specific requests more easily. The development of a sample and prototype will be a little faster, since all departments are integrated in the new building. Once put into production, Higo will remain competitive in terms of prices with its connectors. “The market always demands better products that are not more expensive. By automating as much as possible, we reduce labor costs and can follow market demand, so that the end doesn’t have to pay more for the bike.”
We will soon have automated warehouses with robots that drive around to move goods”
Also for e-motorcycles
The new facility, which costs a whopping forty million dollars, also ensures that Higo can establish deeper roots in new industries, such as e-motorcycles. This way, A&C Solutions can serve its customers on the European continent even better. “We are seeing a rise in e-motorcycles in Europe, which are gaining ground at the expense of motorcycles with combustion engines. We already have a range of solutions, but due to expected growth we want to go further with Higo. The connectors are basically the same as those of bicycles, only we are talking about heavier capacities and the connectors must be suitable for the higher currents.”
Extensions
With the opening of the new premises, A&C Solutions and Higo want to become an even stronger duo and take advantage of new opportunities. “A lot of production has returned to Europe in recent years. That is a good thing. On the other hand, there is still a lot of production in Asia. If our customer works with a party in Asia for the delivery of a specific component, we ensure with Higo that the counterpart connector fits perfectly with the connector in the bicycle. A display and battery then communicate flawlessly. At A&C Solutions we have teams in European countries who speak the local language and can effortlessly switch with the factory in China. This way we are perfect extensions of each other.”
This article is sponsored by A&C Solutions.
