Mitsubishi Electric Corporation's elevator and escalator manufacturing company in Shanghai has started operations.
Mitsubishi Electric Shanghai Electric Elevator Company Ltd. has begun operating and the company will complete a fourth factory in the country by July 2015.
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 approximately USD6.5 million. It is being used to manufacture products including elevator equipment, especially hall equipment.
The 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 approximately USD14.7 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.