Europe and the Middle East 

In Europe, new construction and renovation activity increased slightly in 2005. Due to the stable development of the construction industry, the overall trend in new equipment demand was steady, but it varied from country to country.

In Europe, approximately half of new elevators are installed in residential buildings. In 2005, demand from residential construction was strong in Italy, France, Spain, and Belgium and remained fairly strong in other European countries. Low interest rates supported the positive trend. Only in Germany demand remained weak.

Office-building construction activity was clearly weaker than residential construction except in the U.K., where it was good. Construction activity continued to be brisk in Russia, which accelerated demand in all customer segments. Demand was especially strong in the retail market.

In the Middle East, demand for new equipment remained strong in all customers segments. Increasing tourism boosted demand for hotel and entertainment building solutions, and new infrastructure projects such as airport extensions were also undertaken.

In Europe, services account for a substantially larger share of sales than new equipment. It is estimated that around two-thirds of the elevators in service in Europe are over 20 years old, which increases the need for both maintenance and modernization.

In 2000, the European Committee for Standardization (CEN) issued a safety recommendation regarding elevators in service: the European Safety Norms for Existing Lifts (SNEL). France, Belgium, Spain, and, to a lesser extent, Germany have already made the recommendation part of their national legislation. In the fall of 2005, a Ministerial Decree was passed in Italy to recommend its ratification.

In Europe, the Middle East and Africa (EMEA), KONE successfully maintained its market position in a tough competitive environment. Order intake grew substantially, and the company secured several major contracts, such as an order for White City in London, Europe’s largest shopping center, and an order for Naberezhnaya Tower C that forms part of Moscow City, the largest construction project in the Moscow area. KONE will also deliver the world’s first double-deck elevators equipped with a destination control system to the 35-floor Broadgate Tower office building in the City of London.

KONE’s most significant projects in the Middle East include the Rose Tower in Dubai, which will be the tallest hotel in the region, and Park Place, where KONE will install the fastest elevators in the Middle East.