Asia-Pacific region 

KONE’s position continued to strengthen in the Asia-Pacific region

The Asia-Pacific region continued to develop well, with most markets maintaining a high level of activity. The market for new equipment continued to be good, especially in China, India and Australia. The Southeastern Asian markets of Malaysia, Singapore and Vietnam also showed positive progress. Rapid urbanization and economic growth were the main factors affecting the new equipment and modernization markets in the region.

The Chinese market was characterized by increased investment in urban real estate. The demand for new equipment was strong, especially in the residential sector which constitutes approximately two-thirds of the construction segment. KONE was able to further strengthen its market position in the residential segment due to its new elevator offering customized for Chinese residential buildings.

The central government made several consecutive controlling actions particularly to guide residential construction towards more affordable housing for people moving into cities, which temporarily slowed down growth somewhat.

The Indian market developed well. Although the residential building sector remained the engine of growth, all segments performed well. KONE continued to enjoy good order intake growth in India.

Despite the fact that the service business is still young in the growing Asian markets, demand is expanding rapidly in line with new equipment installation.

The Australian market progressed steadily. As a result of the active demand for modernizations, KONE succeeded in winning several significant modernization contracts. Market activity was also high for new equipment in the office and commercial segments and, contrary to expectations, did not slow down signifi-cantly in the residential segment.

In 2006, KONE won the order for all elevators for the National Stadium in Beijing, which will host the 2008 Olympic Games. The order follows KONE’s previous successes in China, including equipment deliveries for the new terminal at the Beijing Capital Airport, the Capital Museum and the National Grand theater.