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World's Leading Elevator Producer Strengthens Presence in China
World's leading elevator producer, Otis, today launched its new product Gen2 in China, in a bid to further strengthen its leading position in the world's biggest and fastest growing market.
Stephen Page, Otis president and chief executive officer, who is in Beijing for the ceremony, said the fact that Otis has chosen to start the local production of Gen2 in China 10 months after its development shows the importance attached to the Chinese market by his company.
A survey done by Otis estimates that China's construction market will expand at 30 to 40 percent in the next 10 years, making it one of the fastest growing markets in the world.
Hailed by Otis sources as the first major technological breakthrough in the 150-year history of the elevator, the Otis Gen2 system is driven by a three-milimeter-thick coated steel belt, instead of the traditional heavy steel cable.
The belt not only is stronger and more reliable, but also reduces the size of the driving machine by 75 percent, thus making independent elevator houses unnecessary.
The new product has reached the Chinese elevator safety code. Therefore, China has become the second country in the world after France to produce Gen2.
According to Page, Otis's China Engineering Center has participated in the global efforts in developing Gen2, which has made early technology transfer and local production possible.
The Chinese factories will produce Gen2 for domestic market in the first step. Page said they will later supply it to the rest of the Asia and Pacific regions.
As one of the first multinationals to enter China, Otis started its joint venture in China in 1984. It now has five joint ventures in Tianjin, Guangzhou, Beijing, Shanghai and Hangzhou.
In 1998, it launched the Otis China Holding Co. to make its joint ventures act as one and enhance its competitive edge in China.
According to Patrick L'Hostis, Otis's senior area executive for Asia and Pacific area, the company now holds 25 percent of China's elevator market, which has an annual size of 35,000 units.
He also disclosed that as a reaction to China's strategic move to develop the vast western region, Otis is considering to build a new plant in the west, negotiations for which are underway.
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