After acquiring a 46% stake in Xuchang Xiji Elevator Co. Ltd., Schindler has established a new joint venture in China. The agreement has now been approved by the competition authorities and includes options for Schindler to purchase the remaining shares.
The joint-venture company is named XJ-Schindler (Xuchang) Elevator Co. Ltd. and has its headquarters in Henan Province, in the country’s central region.
Schindler will be represented at board level in the joint-venture company, which will sell its own brand of elevators based on the existing products offered by Xuchang Xiji Elevator Co. Ltd. The company produces around 10,000 elevators and 4,000 escalators per year and is active in design, manufacture, installation and maintenance, employing around 1,000 people.
Both parties agreed not to disclose the value of the equity stake being acquired by Schindler.
Schindler’s stake strengthens its position in the residential and affordable-housing segments, China’s largest property markets.
It also boosts Schindler’s presence in the country's second- and third-tier cities, which have high urbanization rates and are the fastest growing elevator and escalator markets.
“This new joint venture will bring tremendous benefits to both parties,” said Schindler Asia/Pacific President, Silvio Napoli. “With Schindler’s strong market share in the high-rise and escalator business, as well as Xuchang Xiji Elevator Co.’s well-established presence in China’s fastest-growing areas, both companies complement each other in achieving a remarkable geographical market coverage and in offering a comprehensive product portfolio.”
The Chinese government plans to build a total of 36 million homes for low-income families over the next five years.
The Schindler Group, founded in 1874, 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. Every single day, Schindler products move one billion people all over the world.