Otis to Triple Capacity
Otis, an elevator company which accounts for 27% of the global elevator and escalator market, plans to invest an additional $100 million to triple its Tianjin plant’s capacity by 2012.
The plant, located in the Tianjin Economic Development Area (TEDA), currently has an annual production capacity of 50,000 machines and 20,000 elevators. With the additional investment, the TEDA plant will have a new automatic production line manufacturing high-rise elevators. With China’s market size reaching 3,000 units per year, China and the Middle East are two major markets for high-rise elevators.
Otis is now focusing its business in China, devoting its production capacity mainly to domestic consumption. In spite of the Chinese government’s curb on speculative investment in the housing sector, the country’s urbanization is still fueling the market’s growth.
Considering China as a market of strategic importance turning into both a huge consumption market and an efficient manufacturing base, Otis is also planning to expand investment in Chongqing, Guangzhou, Suzhou and Northeast China.
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