FOR IMMEDIATE RELEASE No. 3288
TOKYO, June 20, 2019 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has established MELCO Elevator Lao Sole Co., Ltd. (MLAO) to accelerate its elevator and escalator business growth in the highly promising Mekong regional market. The new company, which was established by Mitsubishi Elevator (Thailand) Co., Ltd. (MET), a Mitsubishi Electric subsidiary, will commence operations on July 1, 2019. The new company is expected to strengthen Mitsubishi Electric's sales of elevators and escalators as well as related provision of high-quality maintenance services. Annual sales in Laos are expected to rise to US$ 3.82 million by the fiscal year ending in March 2024, up 50% from the fiscal year that ended in March 2019.
The building MLAO will be located
Laos, which has been posting year-to-year GDP growth of approximately 7% for the past several years, is an emerging market with much potential for growth in elevator and escalator demand. Mitsubishi Electric forecasts annual demand rising from approximately 180 units in the fiscal year ending in March 2019 to approximately 290 units in five years' time.
Mitsubishi Electric and its subsidiary MET have been distributing elevators and escalators in Laos through a local agent, Souvanny Home Center Public Company (SVN), since 2013. Mitsubishi Electric is a recognized leader with a market share of some 30%, primarily in the premium segment such as luxury hotels and offices.
MET, having successfully completed many elevator and escalator projects in Thailand, purchased and integrated SVN's elevator and escalator business with MLAO. The new company will focus on delivering elevators and escalators that offer increased safety and peace of mind, backed by MET's support and guidance for installation and maintenance operations.
Mitsubishi Electric, which also distributes elevators and escalators through agents in the neighboring markets of Cambodia and Myanmar, looks forward to accelerating its business expansion in the rapidly growing Mekong regional market.
|Company||MELCO Elevator Lao Sole Co., Ltd.|
|General Manager||Sonthi Piamsawad|
|Capital||LAK 20B (US$ 2.3M)||Ownership||MET: 100%|
|Established||June 2019||Start of business||July 1, 2019|
|Employees||Approximately 60 (as of June 2019)|
|Business||Sales, installation and maintenance of elevators and escalators in Laos|