TOKYO, February 26, 2018 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that its subsidiary Mitsubishi Elevator Korea Co., Ltd. (KMEC) will begin operating a new elevator factory in the Incheon Free Economic Zone of South Korea on March 1. The factory will have an R&D center for strengthened development and verification functions and will expand current production capacity by 2.5 times to 4,000 units, Mitsubishi Electric expects to help expand its elevator and escalator global business and increase market share in South Korea.

New factory

KMEC's New Factory

Location Incheon Free Economic Zone (Songdo), Inchon Metropolitan City, Republic of Korea
Site area 18,220 square meters Floor Space 19,070 square meters
Purpose Development, verification and manufacture of elevator equipment
Start of operation March 1, 2018 Production capacity 4,000 units annually
Investment Approx. 33 billion KRW (Approx. US＄27 million)
Employees Approx. 120 (initially)
Adjunct facilities 95-meter elevator testing tower, and field training center

Aims of New Factory

1)
Leverage reinforced development and verification capabilities of new R&D Center to respond to global market needs
- New R&D center for development and verification will make full use of KMEC's engineering capabilities
- New R&D center will take over selected development functions from Inazawa Works, Mitsubishi Electric's elevator and escalator mother factory in Japan, for global development and verification
- Strategically integrate sales, engineering, development, manufacturing, installation and maintenance functions in South Korea to offer elevators that meet specific local needs

2)
Strengthen product competitiveness by expanding supply of high-speed elevators for global market
- To meet the rising global demand created by increasing high-rise buildings, Mitsubishi Electric will introduce high-speed elevator models capable of 300 meters/minute or even 360 meters/minute, supplementing current models that travel 240 meters/minute. Also, locating production operations in South Korea will contribute to the price competitiveness of these high-speed elevators
- Respond to growing demands for high-speed elevator renewals, particularly in the ASEAN and Middle East regions
3)
Strengthen production capacity to expand business in South Korea
- Boost production of NexPia series elevators designed specifically for South Korea
- Respond to rising demand for small and midsize low-rise buildings in South Korea's market

Note that the releases are accurate at the time of publication but may be subject to change without notice.