Schindler acquires substantial minority stake in new joint-venture partner
Schindler, a leading global elevator and escalator company, present in China since the early 1980s, is to establish a new joint venture with Chinese elevator company, Xuchang Xiji Elevator Co. Ltd. As part of the agreement, the Schindler Group will initially acquire a 46% equity stake in Xuchang Xiji Elevator Co. Ltd. with options to purchase the remaining shares. The agreement is subject to approval by the relevant authorities.
The joint venture, to be named XJ-Schindler (Xuchang) Co. Ltd., will strengthen Schindler's position in the residential and affordable housing segments, the fastest growing housing markets in China.
Xuchang Xiji Elevator Co. Ltd., based in Henan Province, is a leading Chinese elevator and escalator company, with its own design, manufacturing, installation and maintenance operations.
Both parties agreed not to disclose the value of the equity stake being acquired by Schindler.
On March 9, 2011, the Chinese government announced plans to build 10 million affordable homes in 2011, out of a total of 36 million homes planned for low-income families over the next five years.
The Schindler Group is a leading global mobility provider with more than 43,000 employees in over 100 countries. The company designs, manufactures, installs, services and modernizes elevator and escalator systems for almost every building type. Schindler supports sustainable urban development with safe, reliable and energy-efficient mobility solutions.