September 2013
09
lead indicator of a potential marketfor Otis Elevator Company is
urbanization. In the last 60 years,Korea has experienced rapid
industrialization and urbanization. So it’s nosurprise that one in every four elevators inKorea today is an Otis Elevator — and thatOtis Elevator Korea has the global Otis’ fifthlargest service portfolio.
With a mission to “be the leader in movingpeople to their goals every day,” Otis ElevatorKorea has been doing this both literally andfiguratively since 1910, when it installed thecountry’s first elevator, in the Chosun Bankand for the transport of money. In 1914, thecompany installed Korea’s first passenger ele-vator, in the Chosun Hotel.
Otis Elevator Company steadily expandedits presence in Korea over the decades, estab-lishing a joint venture with the lift division ofLG Industrial Systems in 2000 and fullyacquiring the company in 2006. Otis hasinvested a total of more than KRW 300 billion(USD 268.5 million) in its Korea operation.
“Otis has always been interested in grow-ing in Korea and developing a strong baseand market share,” said Kenneth Muller,President & CEO of Otis Elevator Korea.
A unit of United Technologies Corporation,Otis is the world’s largest manufacturer andmaintainer of people-moving products,including elevators, escalators and movingwalks. It has operations in more than 200countries, with Otis Elevator Korea running50 offices nationwide.
The company’s focus here is threefold:Installing units domestically, servicing themore than 100,000 units in Korea and export-ing products to more than 75 countriesthrough a brand called Sigma, which includesfive fully owned subsidiaries in China,Thailand, Malaysia, Singapore and HongKong that are overseen by Muller.
Otis Elevator Korea sells and installs morethan 3,000 lifts a year domestically. The com-pany had a manufacturing base in Korea untilrecently, but today focuses on design engi-neering and supply chain management inaddition to its installation, service and exportbusinesses. With many of the lifts in Korea
having been installed about 15 years ago, thecompany modernizes aging elevators as well.Otis Elevator Korea is also the only Otis com-pany to make automated parking systems.
By far the largest business in Otis’ Asia-Pacific region, which excludes China, theOtis Elevator Korean group accounts formore than one-third of the area’s total sales.The company has seen single-digit portfoliogrowth every year for more than five years.
Over the years, Otis Elevator Korea haspartnered with Korean builders on projectsoverseas, including in Africa and the MiddleEast. The company has also played a signifi-cant role in shaping key Otis innovations.Much of the development for the company’senergy efficient ReGen drive, which regener-ates energy and returns it to the building’selectrical grid for reuse by other systems, wasdone in Korea. Otis Elevator Korea was alsofirst among Korean elevator companies toestablish a 24-hour call center in the 90s.
When it comes to Otis Elevator Korea’sgreatest achievements, one need look no fur-ther than Incheon International Airport, whereall transport devices, except for the shuttletrain that runs through the airport, were madeby Otis.
“I’m very proud, and I’m sure every Otisemployee is very proud when they use thatairport,” said Muller.
Other landmark buildings with Otis equip-ment include the NEATT building in Songdo,N Seoul Tower, the new Lotte World Towerthat is currently under construction andexpected to be the second tallest skyscraper inthe world and the International FinanceCenter (IFC) in Yeoido, which houses 130pieces of Otis equipment. Coincidentally, OtisElevator Company will be moving into theIFC this year.
“When we bring our customers there, wejust have to walk them through the mall,” saidMuller, calling the IFC a showcase of theirproducts. “This is what our people and prod-ucts can deliver and what you can expectfrom Otis Elevator Korea.”
By Young [email protected]
Going Up The ultimate mover of people, Otis Elevator Korea aims to
remain a leader in service
- The escalator we know today wasdesigned by Charles Seeberger in thelate 1890s. He coined the name “esca-lator” from the Latin word “scala,” whichmeans “stair.” In 1899, Seeberger andOtis Elevator Company made the firstcommercial escalator. Seeberger even-tually sold to Otis his patent rights for theescalator. And “escalator” became acommon term, losing its proprietary sta-tus, in 1950.
Did you know?
Kenneth Muller, President & CEOof Otis ElevatorKorea
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