Mitsubishi Electric to build two new factories in China

MESE aims to – with the two new factories – double its annual capacity to 20,000 units. The two additional factories will enable to MESE to respond to increasing demand for elevators and escalators in China by offering extra-competitive, high-speed products made locally. In addition to expanding capacity and introducing the latest manufacturing facilities, the company also is enhancing its facilities for development, engineering and testing. The newest of the two factories, a one-story steel structure measuring about 6'300 square meters, entered operation last month. It was constructed at a cost of RMB 40 million, or approximately USD 6.5 million. It is being used to manufacture products including elevator equipment, especially hall equipment. The second new factory, which will be completed in July 2015, will comprise a one-story factory measuring about 25'500 square meters and a separate three-story building for development and engineering, including a testing tower for evaluating elevators. The total cost will come to RMB 90 million, or approximately USD 14.7 million. China is the world’s largest market for elevators and escalators, with combined annual demand exceeding 500,000 units, which accounts for more than 60% of global demand. As urban development spreads from China’s coastal areas to inland regions, demand is expected to continue growing at a moderate pace.