Hitachi forecasts a lift from Cambodian elevator sales
Hitachi Elevator Cambodia Co aims for sales volume of 150 units in 2020 with revenue of US$6 million (182.4 million baht) as high-rise buildings spring up in the neighbouring country.
The company is a joint venture of Japan's Hitachi (47%), Thailand's Siam-Hitachi Elevator Co (30%) and Cambodia's CMED Group Co (23%).
Founded in July 2016, Hitachi Elevator Cambodia has registered capital of $1.2 million to provide sales, installation and maintenance of elevators and escalators.
Sakchai Worrasangasilpa, managing director of the unit in Cambodia, said the country's economy is growing fast, particularly the construction sector, which has expanded at 6-7% annually over the past five years in line with the nation's GDP.
"The market is demanding roughly 500 elevators and escalators a year, and Hitachi has seen a business opportunity to provide services for property owners," Mr Sakchai said. "Average prices in Cambodia start at $40,000 a unit, depending on quality and speed of the elevators and escalators."
Hitachi expects to have a 25% market share in elevators and escalators in Cambodia by 2021.
Mr Sakchai said the company sold just 50 units in 2017 and 100 in 2018.
"So there is plenty of room for Hitachi to grow in that market from many types of buildings: offices, high-end condominiums and department stores," he said.
At present, residential projects account for 50% of Hitachi's sales in Cambodia. Casino operators represent 30% and hotels and resorts the remaining 20%.
Mr Sakchai said Cambodia is a key market in Southeast Asia with a highly competitive segment in elevators and escalators, as many players from Japan, China and Thailand have sought to capitalise on the booming construction sector.
Siam-Hitachi Elevator is a joint venture of Hitachi (60%) and Siam Motors Co (40%).