Mitsubishi Electric Building Techno-Service

History

2021: Mitsubishi Electric has created a new company to develop the business of producing elevators and escalators

On October 18, 2021, Mitsubishi Electric announced the creation of a new subsidiary of Mitsubishi Electric Building Techno-Service, to which it will transfer business in the field of systems for buildings, including elevators, escalators and hand dryers.

In its medium-term management plan for FY2026, Mitsubishi Electric identified this business as one of the key growth areas of the company. The company is working to expand the scope of this business and increase its profitability, investing more intensively in management resources to stimulate growth, the press release said.

Mitsubishi Electric formed a new company and transferred the business of producing elevators and escalators there

Elevators and escalators in Japan are extremely widespread, the average floor of residential buildings in Japan is six floors. At the end of 2018, 880 thousand units of elevator equipment were served in Japan: 757 thousand elevators, 70 thousand escalators, 49 thousand small elevators, the carrying capacity of which is no more than 50 kg and 2 thousand platforms for the disabled. In Japan, electric elevators without a machine room are popular. Regarding hydraulically driven elevators, in 2000 there were 98 thousand units in the country, but from year to year their number is gradually decreasing. The average age of Japanese elevators is about 20 years.

About 15 Japanese companies are engaged in the production of elevators in Japan, the largest of which are Hitachi, Toshiba and Fujitec. Fujitec is the only Japanese company whose scope includes only elevator equipment. The five elevator manufacturers include one foreign company Japan Otis Elevator, a branch of the American corporation OTIS. The market for installing new elevators in Japan is about 24 thousand units for 2020. The main elevator sales of Mitsubishi Electric, Hitachi, Toshiba and Fujitec are overwhelmingly outside Japan, usually in the Asian market. Mitsubishi Electric at its only factory in Japan produces approximately 10 thousand elevators per year.^[1]

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