Joint Venture to Start Production in World's Second Largest New Elevator Market
TOKYO, May 14, 2015 - (ACN Newswire) - Mitsubishi Corporation (MC) and Mitsubishi Electric Corporation (MELCO) are setting up a new plant in India at MELCO subsidiary Mitsubishi Elevator India Private Limited (IMEC) to start manufacturing of elevators for the Indian market. The move is expected to enhance competitiveness in what is now considered to be the world's second largest new elevator and escalator market and contribute to their target of achieving 5,000 units per year in sales in India by FY2020.
The escalator and elevator market in India is growing rapidly in keeping with the country's rapid economic growth. With demand reaching 47,000 units for newly constructed buildings in 2014, India is now the world's second largest market for new escalators and elevators, following China, and demand is expected to see continued growth. MC's elevator business in India dates back to 1995, when it started to support a local sales agent. In 2012, MC and MELCO established an elevator distribution joint venture company in Chennai in the state of Tamil Nadu in order to strengthen its business base for sales, installation and maintenance. The joint venture has been expanding its business with the introduction the "NEXIEZ-LITE", a new product developed for low- and mid-rise buildings.
The establishment of this new production plant in Bengaluru, in Southern of India, which is home to a number of IT companies, will not only enable IMEC to localize the manufacture of elevator products, particularly the NEXIEZ-LITE, but will also serve to strengthen the competitiveness of MELCO products in terms of price and lead time. It will also contribute to business expansion, based on a streamlined structure for production, sales, installment and maintenance. IMEC is also planning to construct 41-meter high elevator test tower and a field training center for installment and maintenance in an effort to enhance the capacity of engineers, all with the aim of improving the quality and reliability MELCO's products and services and further boosting customer satisfaction.
As its escalator and elevator market continues to grow, India stands to be positioned as one of the world's most important markets in this business. Through the construction of this new plant and additional shares acquired in IMEC in March of this year, MC will continue to strengthen its business foundations as a strong competitor in the escalator and elevator business in India.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Source: Mitsubishi Corporation
Contact:
Mitsubishi Corporation Telephone:+81 3 3210 2171 Facsimile:+81 3 5252 7705
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