Lithuanian Firm to Produce Electric Bikes for Major German Firm

Custom-built bicycle manufacturer Baltik Vairas is set to sign a strategic partnership with HNF Heisenberg, a major German producer of electric bicycles. Once the agreement is finalised at the Eurobike 2015 international bicycle fair being held this weekend, the Lithuanian firm will start producing customised electric bikes for the rapidly growing German company.

Whilst Baltik Vairas is already well-established as an electric bicycle producer and exporter, Daiva Povilaitė, the company’s manager of strategic projects and communication, admits that the new orders from HNF Heisenberg will move output to the next level.

“We met with HNF Heisenberg for the first time almost a year ago,” she explains. “They visited our plant several times and saw how our bicycles are produced. When they established that the quality levels at our plant are very high, they decided to choose Baltik Vairas as their strategic partner.”

The company, based in Šiauliai in the north of Lithuania, is already showing dynamic growth, with sales of regular and electric bicycles surpassing 78,000 in the second financial quarter of this year, bringing in 14,3 million Euros for the company. This is more than double the figure of 7,4 million Euros for the same period last year. Significantly, the company is also becoming much more profitable, with second quarter post tax profits at 848,000 Euros this year, compared to 88,000 Euros the previous year.[quote text=”HNF Heisenberg can design and develop state-of-the-art electric bicycles and Baltik Vairas offers manufacturing experience.” name_surname=”Peter Ferlev Jensby” description=”Baltik Vairas’s CEO” left=””]

Ms Povilaitė is confident that the partnership with the German manufacturer will allow Baltik Vairas to develop its electric bicycle division even further and strengthen its position in the market of high quality electric bicycles. Also on the table for discussion is an exclusivity agreement that would make Baltik Vairas the sole distributor of HNF Heisenberg products in the Baltic States.

For Baltik Vairas’s CEO, Peter Ferlev Jensby, the agreement plays to both company’s strengths. “HNF Heisenberg can design and develop state-of-the-art electric bicycles and Baltik Vairas offers manufacturing experience.” And he is confident that this collaboration will enable both companies to become some of the top electric bicycle manufacturers in Europe.

Production capacity for new products already in place

The deal makes a lot of sense for both parties because production can begin immediately. As Ms Povilaitė explains, because the Lithuanian company has already worked with HNF Heisenberg on adapting its electric bicycle designs for mass production, Baltik Vairas will be able to start production without the need to invest in new production lines or technologies.

Through the agreement, Baltik Vairas will produce four models of electric bicycles for HNF Heisenberg, who will remain responsible for innovation and design. The HNF Heisenberg bicycles will continue to produce their most innovative models in Germany.

Read full article in Lithuanian at VZ.lt