Mitsubishi Electric Corporation has established MELCO Elevator Lao Sole Co., Ltd. (MLAO) to accelerate its lift and escalator business growth in the highly promising Mekong regional market.
The new company, which was established by Mitsubishi Elevator (Thailand) Co., Ltd. (MET), a Mitsubishi Electric subsidiary, began operations on July 1, 2019.
The new company is expected to strengthen Mitsubishi Electric’s sales of lifts and escalators as well as related provision of high-quality maintenance services.
Annual sales in Laos are expected to rise to US$ 3.82 million by the fiscal year ending in March 2024, up 50% from the fiscal year that ended in March 2019.
Laos, which has been posting year-to-year GDP growth of approximately 7% for the past several years, is an emerging market with much potential for growth in elevator and escalator demand.
Mitsubishi Electric forecasts annual demand rising from approximately 180 units in the fiscal year ending in March 2019 to approximately 290 units in five years’ time.
Mitsubishi Electric and its subsidiary MET have been distributing lifts and escalators in Laos through a local agent, Souvanny Home Center Public Company (SVN), since 2013.
Mitsubishi Electric is a leader with a market share of some 30%, primarily in the premium segment such as luxury hotels and offices.
MET, having successfully completed many projects in Thailand, purchased and integrated SVN’s lift and escalator business with MLAO.