Mitsubishi enters the elevator market in the country

Another Asian Group will compete in the market for elevators in Brazil, today dominated by multinationals Atlas Schindler and ThyssenKrupp, Otis. After the Hyundai start the works of its plant in São Leopoldo, in the metropolitan region of Porto Alegre (RS), Mitsubishi Electric, manufacturer of the Japanese industrial conglomerate equipment, announced last week that it took control of the LGT, company which produces elevators in nearby Guaíba.
Although the value of the transaction has not been released officially in the statement made by the Japanese group in Tokyo, the capital contribution from Mitsubishi in Mundial was greater than r $ 50 million, according to Leonardo Galdino, Director of market relations and a member of the founding family of the LGT.
Directly or via subsidiaries and affiliated companies, Mitsubishi Electric Corporation is 94.7% of the capital stock of LGT, which adopts the brand now Melco, Japanese group. The remaining portion, of 5.3%, continues with the family G. The entrepreneur Lauro Galdino, who founded the LGT in 2006, will continue in the administration of the company as Director of operations. However, above it there will be a Council President (chairman) and CEO (CEO, the acronym in English) to be appointed by Mitsubishi.
Leonardo G says the deal didn't involve sale of holdings of the family, but rather a capitalisation is made by Mitsubishi in the company. The negotiations, he says, lasted about a year until the completion of the agreement. For two months, the business of LGT have also undergone an audit (due diligence) by Mitsubishi, according to the Executive. "It's been a long courtship".
The Guaíba mill employs about 300 employees and operates at a rate of 120 elevators per month. Mitsubishi will also import in Brazil escalators produced in its factories in Asia, says G. There is room for expansion within an area of approximately 80 thousand square meters, but the move avoids Executive business plan of the company from now on.
With the arrival of the Mitsubishi and Hyundai's investment, the region of greater Porto Alegre is consolidated as a major center of production of elevators, as Guaíba also houses the Thyssen plant. In São Leopoldo (RS), the Hyundai will have its first plant of this product outside of Asia.
The demand for elevators in Brazil, stimulated by new construction projects, exceeds 15 thousand units per year. To justify their onslaught on the country, Mitsubishi Electric – whose revenues in the world reached $ 37.9 billion in the last fiscal year-cited the Brazilian economic growth, migration towards urban areas and the rise of the middle class. For the group, this will follow in high consumption.