Hitachi opens Laos unit with goal of 5-fold market share increase
BANGKOK, NNA - Japanese electronics giant Hitachi Ltd. has launched a sales and service unit in Laos, eyeing a five-fold increase in its local elevator and escalator market share as it expands its business in Asia and the Middle East.
The Tokyo-based firm has sold elevators and escalators in Laos via Siam-Hitachi Elevator Co., its Thai arm, for around 20 years, taking a 3 percent local market share in the fiscal year through March 2019.
By establishing its first base in Laos, Hitachi plans to capture a 15 percent market share in the Southeast Asian nation, a Hitachi spokesman told NNA last week.
Hitachi forecasts elevator and escalator demand in Laos will rise over 10 percent annually through 2021, given the annual gross domestic product growth rates of more than 6 percent and the construction boom in the capital, Vientiane, according to a company statement released last week.
Hitachi held an opening ceremony for Hitachi Elevator Laos Co. last week. The joint venture with a capital of 14.29 billion kip ($1.6 million) is owned 40 percent by Hitachi, 30 percent by Siam-Hitachi, and the remainder by Tangchareon Construction Sole Co., a concrete firm under a local conglomerate.
Laos is the 16th country in which Hitachi has established a base for its elevator and escalator business. Hitachi's reach in Asia now extends to China, India, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. (NNA/Kyodo)