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|Mitsubishi Electric and Hitachi Announce Small-scale Elevator and|
|Hydraulic Elevator R&D and Manufacturing Tie-up|
TOKYO, Japan, March 20, 2002Mitsubishi Electric Corporation and Hitachi, Ltd. (NYSE: HIT) today announced that they have agreed to a tie-up in the area of small-scale elevators (which have a capacity of up to 4 people) and hydraulic elevators. Accordingly, in addition to joint development, both companies will make the best use of jointly commissioned manufacturing.
In addition to forming a joint development partnership, small-scale elevator manufacturing will be commissioned to Mitsubishi Hitachi Home Elevator Corporation, a joint venture established by the two companies in October 2000, and hydraulic elevator manufacturing will be entrusted to Uchihara Electric Co., Ltd., an affiliate of Hitachi, Ltd.
Mitsubishi Electric and Hitachi plan to begin joint development of small-scale and hydraulic elevators in April 2002 and commissioned manufacturing in October 2002.
Although the market for small-scale elevators is small, there is a steady demand for high-quality, but low cost products mainly for low-rise buildings.
The market for hydraulic elevators has been shrinking in recent years due to increasing sales of machine-room-less elevators. However, it is expected that a steady demand will remain in areas where machine-room-less elevators cannot be used.
Both Mitsubishi Electric and Hitachi are top manufacturers in the Japanese domestic elevator market and offer a variety of products in the areas of high-speed elevators for high-rise buildings and new machine-room-less elevators. Both companies have built strong customer relationships based on their R&D, production technologies and reliability, and strong their nationwide service networks.
In addition, in the home elevator business, Mitsubishi Electric and Hitachi established Mitsubishi Hitachi Home Elevator Corporation in October 2000 and through the combination of their technologies, expedited new product development time and improved production efficiency.
Through this tie-up, the two companies will be able to eliminate redundancies in R&D costs and improve product capacity in the area of small-scale elevators and hydraulic elevators. In addition, the development resources of both companies will be leveraged to develop cutting-edge technologies and key products, thereby significantly strengthening technology and new product development for emerging fields.
Mitsubishi Hitachi Home Elevator Corporation
Uchihara Electric Co., Ltd.
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|WRITTEN BY Corporate Communications Division