Mitsubishi Electric's Business in Vietnam Becomes Subsidiary
OREANDA-NEWS. Mitsubishi Electric Corporation (TOKYO: 6503) announced today it has acquired additional shares of Melco Elevator Vietnam Co., Ltd., its elevator and escalator joint venture, in order to convert it to a subsidiary company. Subsequently, the company was renamed Mitsubishi Elevator Vietnam Co., Ltd. This change will enable Mitsubishi Electric to further expand its operations in the growing market of Vietnam and to centralize control over product safety and quality.
Mitsubishi Electric has been conducting business in Vietnam since 1973. In 2008, the company established Melco Elevator Vietnam Co., Ltd., a joint venture engaged in elevator and escalator sales, installation and maintenance, with Toan Tam Engineering Co., Ltd. (TTE). Mitsubishi Electric also concluded a distributorship agreement with Thang Long TLE Group (TLE). With these two sales channels, the company has provided elevators and escalators for high-profile facilities like the Sheraton Saigon Hotel & Towers and Tan Son Nhat International Airport in Ho Chi Minh City, garnering over 20% of the Vietnamese market.
In recent years, demand for elevators and escalators in Vietnam has exceeded 4,000 units annually and is expected to continue rising. By acquiring TTE's shares and transferring TLE's maintenance business to the new subsidiary, Mitsubishi Electric will enhance the scale and profit-generating capacity of its business to meet this demand while better ensuring the safety and reliability of its products and services.
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