CORRECT: Hitachi sets sights on 25% market share in fast-growing Cambodian elevator market
Corrects timing to 2016 from 2017 for the establishment of the local unit in 3rd paragraph in Oct. 10 story.
BANGKOK, NNA – Japanese conglomerate Hitachi Ltd. group aims to capture a 25 percent share of Cambodia’s elevator market by 2021 following construction growth due largely to investment from China.
Hitachi Elevator (Cambodia) Co. is targeting moneyed customers such as developers, casino owners and office building operators for elevator sales. The electronics-to-infrastructure conglomerate’s Cambodia unit sold 100 units last year to take a 10 percent share in the Cambodian elevator market, managing director Sakchai Worrasangasilpa told reporters in Bangkok on Tuesday.
The local unit, founded in 2016, sold 50 elevators in 2017.
Since April, Hitachi Elevator (Cambodia) has contracted for the installation of 80 elevators, Sakchai said. The company must sell around 400 to 500 elevators per year to reach a 25 percent market share and rank among the top three brands including Switzerland’s Schindler and Finland-based Kone.
With massive investment from Chinese investors, Cambodia has enjoyed a significant increase in the construction of high-rise buildings in the past five years, Sakchai said.
The local unit offers faster and more durable elevators compared to competitors that sell China-made lifts at prices as 50 percent less, he said.
Customers include two large shopping centers run by Japanese retail group Aeon Mall Co. and buildings managed by local conglomerate Chip Mong Group Co., the managing director said.
In 2018 alone, Cambodia’s real estate sector received 1.47 trillion riels ($360 million) of foreign investment, with China making up 58.8 percent of the total, followed by Singapore at 28.3 percent, according to data from the National Bank of Cambodia.
Total Chinese investment in the emerging Southeast Asia economy rose 44 percent to $798.24 million in 2018 from $553.89 million in 2014 according to the Association of Southeast Asian Nations database.
The Japanese group has elevator plants in Japan, China and Thailand. The Japanese and Chinese plants serve their respective domestic markets while the Thai plant supplies elevators to Southeast Asian nations. Its annual output capacity is 2,500 units.
The Cambodian arm with $1.2 million of registered capital is owned 47 percent by Hitachi Ltd., the group’s parent company, 30 percent by Thailand’s Siam-Hitachi Elevator Co. and the remaining 23 percent by Cambodian partner CMED Group Co.