Mitsubishi Electric to Beef up Efforts in the Production and Sales of Elevators, Setting up Four Ventures in the U.S., China and Other Countries
Mitsubishi Electric Corporation plans
to set up ventures in the United States and China for the production
and sale of elevators by the end of 1997. In its first launch
in the United states, Mitsubishi plans to establish two companies
at one time. Its Chinese base will be the second venture following
the one in Shanghai. Mitsubishi Electric also plans to establish
ventures as its production and sales bases in India and Argentina.
The company targets to achieve the top world share in more than
six categories of its products by the year 2000. Elevators are
the top priority in their strategy. The company will accelerate
activities on a global scale, with the aim of achieving the No.
1 place, surpassing Otis Elevator Co. of the United States.
The US
Mitsubishi Electric topping the list
of market share in Japan, China and Southeast Asia, has lagged
behind in making inroads into the US market, the headquarters
of OTIS Elevator Company. Because of the fact that both the design
and specifications of elevators in the US are different from that
of Japanese counterparts, it will enter into partnership with
a US company to expedite start-up.
China
Mitsubishi Electric`s
discussions are in the final phase to set up a joint venture to
manufacture and distribute elevators in China aiming for the same
time frame as that of the US market. Shanghai Mitsubishi Elevator
Co., Ltd., Mitsubishi Electric's local corporation, is China's
largest elevator manufacturer. Though it enjoys a share of approx.
22% in the Chinese market, due to sluggish growth of the elevator
market as a whole coupled with intensifying competition, it plans
to set up a new foothold ahead of anyone else in the inland area
where urban development is due to move forward in the future;
thereby consolidating the number one position on the market.
India
Mitsubishi Electric exports 200 units
to India per year through its distribution foothold, a joint venture
currently located in United Arab Emirates. In India where investment
in buildings is brisk it contemplates distributing 1,000 units
per year through joint efforts with a local company.
South America
Mitsubishi Electric plans to set up a joint venture with a distribution
partner to manufacture high-end elevators, as well as standard types.
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