KONE of Finland and Toshiba Elevator and Building Systems Corporation (TELC) of Japan have agreed to strengthen their alliance by establishing an independent joint venture company for escalator production in China.
KONE will own 70 percent of the new company, and TELC will own 30 percent. The joint venture will be the main source of escalators for both parties and will offer a full range of escalator products based on KONE and TELC designs.
The joint venture will operate two manufacturing facilities, consisting of the current KONE manufacturing lines in Kunshan and the current TELC manufacturing lines in Shenyang, both in China. The joint venture is expected to start operations in Kunshan during the second half of 2005 and reach full-scale operations during the second half of 2006.
The joint venture will launch a new escalator product that will set new standards for aesthetics and quality in the commercial escalator segment. The product is based on a TELC design.
“Creating this joint venture accelerates the growth of KONE’s operations and strengthens KONE’s position, especially in China, which is the biggest, fastest-growing escalator market in the world. Our long-term co-operation with TELC continues to produce win-win situations for both partners”, explains KONE Executive Vice President Klaus Cawén.
Finalization of the transactions defined in the joint-venture agreement will follow approval by the appropriate authorities.
Executive Vice President
Senior Vice President, Corporate Communications & IR
For additional information, please contact:
Klaus Cawén, Executive Vice President, tel. +358 (0)204 75 4492
Matti Hyytiäinen, Senior Vice President, Escalators, tel. +358 (0)400 710 968