Mitsubishi Electric sets up Laos unit to lift local elevator sales
BANGKOK, NNA - Mitsubishi Electric Corp. has established a unit in Laos as part of efforts to expand its elevator and escalator business in the Mekong region.
MELCO Elevator Lao Sole Co., established by Mitsubishi Electric's subsidiary Mitsubishi Elevator (Thailand) Co., will launch operations in July, the Japanese electronics and industrial equipment maker said in a statement on Thursday.
Since 2013, Mitsubishi Electric has sold elevators and escalators in Laos via Souvanny Home Center Public Co., which also deals in building materials, home appliances and furniture, the statement added.
Mitsubishi Elevator (Thailand) bought Souvanny Home Center Public's elevator and escalator business to create the Lao unit, but a Mitsubishi Electric spokeswoman declined to disclose the price.
The Tokyo-based company has the largest market share -- some 30 percent -- in the country, primarily in the premium segment for luxury hotels and offices, it said.
Mitsubishi Electric forecasts elevator and escalator demand in Laos will rise from about 180 units in fiscal 2018 ended last March, to around 290 units in five years, in line with high economic growth of around 7 percent in the emerging Southeast Asian economy.
Established this month with capital of 20 billion kip ($2.3 million), the local unit expects to lift sales past $3.8 million by fiscal 2024, up 50 percent from fiscal 2018. Employing about 60 local workers, it will also enhance installation and maintenance services in the country, supported by a Thai unit, Mitsubishi Electric said.
Mitsubishi Electric also distributes elevators and escalators through agents in the neighboring markets of Cambodia and Myanmar, and seeks to further boost its business in the rapidly growing Mekong regional market, the company said. (NNA/Kyodo)