Company special: Otis rises to China's challenges

Otis Elevator, a world-leading manufacturer of elevators and escalators, is deploying more resources to support China's transport infrastructure and high-rise buildings as urbanization accelerates in the country.

As of the end of 2014, there were 3.5 million elevators and escalators in service in China, the largest number in the world, according to a report by the China Elevator Association released in May.

Bora G��lan, vice-president of Otis Global Major Projects at Building and Industrial Systems of United Technologies, a US aerospace and building solutions and technologies provider, said China is now a major battlefield for foreign and domestic elevator makers due to the fast pace at which tall buildings are rising.

"The demand for high-rise elevators in China is not just about being fast but also about going farther," G��lan said." Future elevator technology must focus on the most efficient way to move people to desired destinations throughout the building quickly with advanced dispatching systems - and it will be integrated with other building systems technologies, such as video analytics and intelligent evacuation systems in fire and security applications."

Otis saw an improvement of 5 percent year-over-year in its revenue in 2014, backed by double-digit growth in new equipment primarily driven by China and its home market of the United States.

The company secured the contract to equip the New Bund World Trade Center in Shanghai in June. It will provide 113 elevators and escalators for buildings now under construction for the landmark of Shanghai's new financial district in Pudong.

Other landmark high-rise buildings under construction that Otis will equip include the 660-meter Ping'An Financial Center in Shenzhen, which will be China's tallest building when completed; the 530-meter Chow Tai Fook Center in Tianjin; and the 230-meter twin-tower Suzhou International Fortune Plaza in Jiangsu province.

China has become a global epicenter of high-rise buildings and Otis is rallying its international expertise and resources to satisfy customer needs in this important market, an example of which is the Otis High Rise Contract and Logistics Center in Shanghai. As part of the Otis global major projects organization, the center serves China and global markets by providing high-rise project management and consultancy support. It is staffed by a multinational team of more than 100 highrise engineering and operations experts.

With the population in many of China's second-and third-tier cities much larger than those of big cities elsewhere in the world, G��lan said providing high-efficiency elevators and escalators not only for buildings, but transportation infrastructure such as airports, railways and metro stations is instrumental in keeping up the pace of urbanization.

"As China is moving up the value chain amid the 'new normal' of slower growth of better quality, both domestic and foreign investment in green-energy and advanced products will benefit the economy and the environment in the long term," said Sun Fuquan, a researcher at the Chinese Academy of Science and Technology for Development in Beijing.

In addition to new elevator and escalator installations, China also has urgent needs for quality service support.

About 65 percent of the global market for new installations is in China. "The aftersales service market will also clock a high growth rate as the number of aging and overused elevators increases," Sun said. "China needs to strengthen regulations and oversight of the elevator maintenance market, as it is important for longterm passenger safety."

Unlike the elevator and escalator market in developed markets such as the US, Germany and Japan, where service accounts for more than two-thirds of total revenue, the Chinese service market is still in its infancy due to low awareness of the importance of quality service in elevator and escalator safety.

"We're not just looking at China's new elevator market, but also the nation's units in use as it has a huge demand for after-sales service ... as well as expanding our service support network in more second-and third-tier cities," G��lan said.

Supported by about 7,000 local employees and three research and development centers, Otis has manufacturing facilities in Tianjin, Shanghai, Guangzhou, Hangzhou, Suzhou, Dalian and Chongqing, manufacturing products for the parent brand and subsidiaries Otis, Xizi Otis and Express/Sigma.

G��lan, who has worked in the elevator industry for 22 years, said service has become more important in ensuring elevator safety and performance.

In key cities, the company has dedicated service teams to support major project customers. "Otis is the industry-leading player providing complete end-to-end solutions covering the entire product life cycle, including design and engineering consultancy; project planning and management; manufacturing and delivery; field installation; after sales maintenance; and modernization of designs," G��lan said.

Otis has also launched service support infrastructure based on information technology. The Otis Eagle Service is a real-time monitoring and communications system developed to optimize the elevator maintenance process. The system equips service engineers with intelligent mobile devices and links them to the Otis maintenance management center via cloud computing technology. The system was designed to support engineers in the field, enabling the OtisLine customer care center to send maintenance requests directly to the smart terminal of a specified service engineer and allowing for real-time feedback and monitoring of maintenance records.

"With decades of presence in China, Otis remains committed to supporting China's urbanization and the recent Belt and Road Initiative by innovative elevator and escalator systems and superior services. The initiative also represents a tremendous opportunity to grow our business" G��lan said. He was referring to the Belt and Road Initiative advocated by President Xi Jinping to link Asia and Europe through transport infrastructure projects.

zhongnan@chinadaily.com.cn

(China Daily 08/27/2015 page14)