Mitsubishi Corporation

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December 15, 2015
Mitsubishi Corporation

Mitsubishi Corporation Announces New Elevator Plant for Korea
Move to strengthen development and production and accelerate expansion of elevator and escalator business globally

Mitsubishi Corporation (MC) and Mitsubishi Electric Corporation have reached an agreement to set up a new elevator plant in Korea. The plant, to be run by Mitsubishi Elevator Korea Co., Ltd. (KMEC), a Mitsubishi Electric subsidiary, will be located in the Incheon Free Economic Zone. KMEC will relocate its development and manufacturing base from the present Incheon factory to a new facility and will start manufacturing elevators for both the Korean and overseas markets, expanding its annual production capacity by 2.5 times to 4,000 units.
MC’s elevator business in Korea dates back to 2001 when KMEC, its elevator distribution joint venture with Mitsubishi Electric, was established. KMEC has since been expanding its business steadily. The elevator and escalator market in Korea is expected to reach 24,000 units for newly constructed buildings in 2015, with demand in Korea remaining stable at about 25,000 units. KMEC began exporting high-quality, price-competitive high-speed elevators in 2008 and since then, it has served as Mitsubishi Electric’s global supply base for such models. The facility’s R&D center will absorb selected development functions currently based in Mitsubishi Electric Inazawa Works in Aichi Prefecture, Japan, and this will enable KMEC to strengthen its development and supply functions as well as its business base for sales, engineering, development, manufacturing, installation and maintenance, thereby bolstering its business in Korea and its capacity to respond to global market needs.
MC and Mitsubishi Electric will supply high-quality, price-competitive high-speed elevators utilizing KMEC’s advanced engineering capabilities and access to global markets, especially in the ASEAN and Middle Eastern regions. KMEC is also planning to construct a 80-meter high elevator test tower and a field training center for installation and maintenance in an effort to enhance the capacity of engineers, all with the aim of improving the quality and reliability Mitsubishi Electric’s products and services and further boosting customer satisfaction. In Korea, KMEC will expand the production of the “NexPia”, a regional strategic model, and strengthen sales targeting low- and mid-rise buildings.
Through the construction of this new factory in Korea and the expansion of KMEC’s development and production capabilities, MC and Mitsubishi Electric will continue to strengthen their combined business foundations as a strong competitor in the and elevator and escalator business in Korea. MC also intends to continue seeking expansion for its elevator and escalator business globally in partnership with Mitsubishi Electric.
“NexPia”, KMEC’s signature product in the Korean market
Reference Information
Outline of New Plant
Location:                                    Incheon Free Economic Zone, Incheon, Korea
Area:                                          18,200 m²
Total Building Area:                  19,300 m²
Purpose:                                     Development and manufacture of elevator parts
Production Start Date:                April 2017
Production Capacity:                Up to 4,000 units / year
Investment Amount:                  33,000 mil KRW (approx. 3,500 mil JPY)
Number of Employees:              Approx. 120 (at start of operations)       
Related Facilities:                       80-meter high elevator test tower; field training center
About KMEC
Company Name:                       Mitsubishi Elevator Korea Co., Ltd. (KMEC)
Business:                                   Manufacture, sale, installation and maintenance of Mitsubishi elevators and escalators
Location:                                    Seoul, South Korea
Representative:                            Yong-Sung Kim, President and CEO
Investment Ratio:                         Mitsubishi Electric Corporation, 54%; Mitsubishi Electric Building Techno-Service Co., Ltd., 26%; Mitsubishi Corporation, 20%
Capital:                                         8,000 mil KRW (approx. 880 mil JPY)
Date Established:                         December 2001
Number of Employees:                509 (as at the end of March 2015)

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