Company
Profile

hGears, founded 1958 and headquartered in Germany, is a global manufacturer of high-precision gears and components with a focus on products for e-mobility applications. The Company is convinced that such end-markets, in particular the e-mobility sector, offer highly attractive growth prospects. hGears has its headquarters in Germany and operates globally with production facilities in its key regional markets of Europe and China. hGears develops, manufactures, and supplies precision components and sub-systems as well as complex full system solutions. Products include gears, sprockets, shafts, structural components, complete gearboxes and other components.

Business areas

hGears divides its business into three business areas: e-Mobility, e-Tools and other automotive and industrial applications ("Conventional").

• e-Mobility

  In this business area, hGears focuses on products for e-bike transmission systems and powertrains for electric and hybrid vehicles. Activities include the (co-)development and production of components for e-drive applications (e.g. drive and crank shafts and gears). e-drives require high-precision components that can withstand high torques, are lightweight and have low noise emission.

• e-Tools

  This business area focuses on components used in the drive mechanism of electric power-tools and gardening tools (e-drive). It includes the production of precision components used in the part of the gearbox that connects the electric motor to the actual tool (e.g. cutting and trimming tools).

• Conventional

  The focus of this business area is on transmissions for various applications such as rolling shutters and systems for heating, ventilation and air conditioning, motorcycles, recreational vehicles, and parts for premium and luxury vehicles. This includes the production of various precision components for conventional automotive applications (e.g. drives, steering and braking systems, and vehicle bodies), as well as for other industrial applications.

Group strategy

hGears’ strategic focus is on the e-Mobility business area, which is the mainstay of the growth strategy due to the strong dynamics of the end market. The Company aims to be one of the world's leading manufacturers of premium precision transmission parts and components for e-mobility applications. In the emerging e-mobility sector, high-precision components are crucial for the development and optimization of e-drive applications. hGears’ focus on high-quality precision components translates in high market potential.

Decades of industry experience, initially gained in the e-Tools business area, have enabled hGears to develop the competence and know-how to meet the high requirements demanded by these applications for precision transmission parts and components that must withstand high torques, be lightweight, and minimize noise and losses as much as possible. To meet these demands, the Company utilizes the latest technological processes with the highest quality standards in manufacturing.

hGears is focusing on profitable, organic expansion in related business activities and aims to increase its market share in e-mobility applications. In Europe, the Company is already the leading supplier of high-precision transmission and components for e-bikes. Based on data provided by industry sources and hGears’ own estimates, almost every second e-bike sold in Europe contained components manufactured by hGears.

Customer base

hGears’ blue chip customer base includes a number of major suppliers, which develop systems for integration into end products, as well as original equipment manufacturers. Many of hGears’ clients are leaders in their respective industry and the Company benefits from long, stable and sustainable relationships with its customers. hGears has served many of its key customers for over 15 years.

In most cases, hGears works together with its customers in a "co-development" role to design components and find technologically optimal solutions to satisfy the customer's specifications. Co-development is particularly important for manufacturers of e-bikes and electric and hybrid vehicles, because mission-critical requirements typically go hand in hand with higher quality and precision requirements and often necessitate tailored solutions. Co-development is a key differentiator for winning projects in newer markets, such as e-mobility and further strengthens business relationships by playing a crucial and integral part in its customers' development process.

Group structure

hGears consists of the Company and its three wholly-owned subsidiaries: hGears Schramberg GmbH (formerly Herzog), located in Schramberg, Germany, hGears Padova S.p.A. (formerly mG miniGears), located in Padova, Italy, and mG miniGears (Suzhou) Co. Ltd., located in Suzhou, China.

hGears AG is the strategic management and financial holding company of the Group. It performs the central management function and coordinates shared services of the Group such as financing and treasury, accounting and controlling, information technology, business development, human resources, procurement, strategic and public relations, among others. hGears has three production and manufacturing facilities located in Schramberg, Germany, Padova, Italy and Suzhou, China. As of December 31, 2020, hGears AG had a total of 862 employees (full-time equivalents).