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December 9, 2014

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Home » City specials » Hangzhou

Xizi Otis gets business lift from Hangzhou

By Ding Yining | December 9, 2014, Tuesday | Print Edition

XIZI Otis Elevator Company has big plans.

The company, a joint venture set up by US-based Otis Elevator Co and Xizi Elevators Group in 1997, is adding higher-end and energy-saving products to its lineup while also expanding into lower-tier cities as demand for safe and reliable elevators continues to rise across the country.

Otis’ service concepts and green technology have also helped the venture gain greater market share. Xizi Elevators Group is innovative and down to earth, which mirrors Hangzhou’s business culture.

By the end of 2013, Xizi Otis has set up 36 branches in dozens of cities in the country. Its Hangzhou manufacturing site currently manufactures about 35,000 units per year.

Xizi Otis set up its second plant in Chongqing in 2012. The plant earned a profit within the first year after an initial investment of more than 100 million yuan (US$16.25 million). Covering over 40,000 square meters, its factory produces 15,000 people-moving products per year. Earlier this year it also received Leadership in Energy and Environmental Design (LEED) Gold certification from the US Green Building Council. The certification recognizes the company’s ongoing commitment to China’s green future.

Besides deepening its market penetration in China, it is also looking to expand overseas. In 2013, Xizi Otis’ overseas orders rose more than 10 percent from the previous year and its products are sold to more than 124 countries and regions worldwide.

Otis Elevator Co increased its stake in the joint venture from 30 percent to 80 percent in 2001 to bring advanced management and technology into the company. After becoming a controlling shareholder in the company, Otis sped up the introduction of leading-edge technologies and management expertise to strengthen its effort in the world’s fastest growing economy.

“It showcases Otis’ confidence in the Chinese market and Hangzhou government has been providing very favorable business situation and support for our presence here,” Ma Jing, director of the company’s external relations and communications department, told Shanghai Daily.

“It manages to thrive in a very suitable and favorable business environment provided by the Hangzhou government.”

Otis Elevator Co’s corporate culture has also enabled the company to become a leading player in the elevator market.

“It matches with the industrious and diligent spirit of local people, giving the company a unique culture,” Ma said.

Since first adopting the ACE (Achieving Competitive Excellence) program, Xizi Otis’ operation efficiency has improved significantly.

Initially designed by Otis’ parent company United Technologies Corporation, the program’s core value is excellence in quality assurance and zero waste.

It was modified in 2004 after first being adopted at Xizi Otis in 2001 to achieve sustainable improvement on the quality and efficiency.

Through the combination of information technology and smart manufacturing, orders are now placed automatically at production lines, as are delivery procedures. They’re also well-connected online with logistics services and an inventory management platform.

“We are able to reduce the delivery time through the combination of informatization and automation, thus boosting efficiency,” Ma said.

“Delivery speed is a crucial part of the company’s competitiveness and one of the key reasons why customers chose to work with Xizi Otis,” she added.

The company’s willingness to invest in innovative initiatives such as ACE and automation facilities have enabled it to take a lead among other equipment manufacturers.

Besides providing products to real estate developers and large department stores or public facility operators, the company is also diversifying its business in a variety of sectors.

One of the product categories that Xizi Otis will put more focus in the future is the high performance energy saving elevator, such as GeN2 Mini Machine Room elevator, which is developed with the most advanced green technology and aiming to meet increasing demand of the high-speed development of green building in China.

Currently service and maintenance earning is not the main contributor to Xizi Otis’ overall sales, but Ma said there is strong growth potential.

China is now the world’s largest elevator market in terms of demand, accounting for more than 60 percent of volume worldwide.

The service market is also catching up as more facilities will require maintenance and repair work over the next few years.

The company also continues to emphasize research and development.

The Xizi Otis R&D Center is among 24 research facilities that Otis Elevator Co operates worldwide. It has been carrying out a number of research projects to meet local demands. At the same time it is introducing cutting edge technologies to combine with home-made products.

The R&D process goes through strict quality assessment measures.

Some of the best new products will be introduced to other Otis business units in overseas markets.

Hangzhou


 

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