Fujitec has big expectations for its key market
Elevator maker’s president is optimistic about creating the future of moving systems amid intensifying competition
Fujitec Co Ltd, a Japanese elevator and escalator manufacturer, regards China as its most important market and has a big expectations for the country, according to its president and CEO, despite the intensifying competition in China’s elevator market amid slowing growth.
The company plans to bring tailor-made moving systems to China to fulfill local demand for products featuring high safety and security standards, said Takakazu Uchiyama, president and CEO of Fujitec, adding that the company has established a research and development team in the country.
It March, it won an order in Zhangjiakou, Hebei province, the city that will host the 2022 Winter Olympics and Paralympics together with Beijing. Huasheng Fujitec Elevator Co Ltd, Fujitec’s joint venture in China, will deliver three of the world’s tallest elevators to a hotel to be built in the Snowland project in Chicheng county, Zhangjiakou. The high-speed models travel at 720 meters per minute.
Uchiyama said Fujitec has pursued the unknown and nurtured dreams as “seeds of the future”. By nurturing these seeds, the company has created the future of moving systems, which once existed only in the realm of the imagination.
Founded in 1948, Fujitec is a comprehensive manufacturer of transportation systems, covering R&D, production, marketing, installation and maintenance of elevators, escalators and moving walkways.
In the 1960s, it became one of Japan’s first companies in the market that sought to develop its business globally. Since then, it has helped build cities all over the world and continues to develop aggressively around the world.
In an interview with China Daily, Uchiyama shared his insights on the world’s most populous country and Fujitec’s business philosophy. What is the role of Fujitec’s China business in your global strategy?
At present, the Chinese market accounts for more than half of global demand, making it the largest market in the world. For Fujitec, we also define China as our most important market, and have big expectations for it. The biggest three elevator markets around the world are China, the European Union and India. How do you view the prospects of your business in China? Will you increase your investment in China this year?
China’s elevator market has witnessed rapid growth in the past and is now maintaining steady growth. The country remains an important market for us. We will increase investments in automated production equipment to enhance efficiency, introduce remote monitoring systems into the maintenance work and reduce staff input. How have you localized your business in China in order to meet the demands of local consumers?
In China, we have an R&D team focused on technology innovation. We mainly sell two types of elevators in China, the Zexia and Rexia. Of course, we launch elevators that suit the Chinese market and comply with China’s safety standards. Has competition intensified between your company and Chinese companies?
Yes. Competition in China is very fierce, as the overall growth rate of the elevator business has slowed compared with the rapid development seen in the recent past. Our sales revenue in China reached 3.3 billion yuan ($477 million) last year, with 18,000 elevators and escalators sold in 2017.
I expect the steady growth in the elevator market will continue in the coming years. Do you plan to expand into other fields by using automation technologies?
At present, we don’t have any plans to tap into other fields. Although Fujitec is mainly engaged in the production of elevators, escalators and moving walkways, we are also involved in installation, maintenance, renewal and transformation, and make use of related technologies. What’s Fujitec’s biggest achievement in China?
Fujitec has provided escalators and elevators for many of the world’s most famous buildings in the past few years. In the 30 years of China’s rapid economic growth, our joint venture with Chinatex Corp, namely Huasheng Fujitec Elevator Co Ltd, has grown by leaps and bounds.
From Beijing Capital International Airport and the China World Trade Center, to The Peninsula Shanghai, these projects have tested the technological prowess of Fujitec.
However, the biggest challenge will undoubtedly be the Snowland project in Zhangjiakou. The mountain elevator has an epoch-making role in the history of Fujitec’s development in China. We will give full play to the technology and experience we have accumulated over the years, to provide the best products for the Snowland project.
What are your dreams and ambitions in China?
First, providing elevators featuring high safety and security standards for Chinese consumers, ensuring they feel comfortable when they step into our elevators.
Second, we hope that more people will use our elevator and escalator products. We hope to gain trust from more consumers and expand our market share in China. How do you handle hardships and setbacks, if any?
Fujitec has been operating in Japan for 70 years now. The difficulties in the early days of starting a business are significant. When we expanded beyond Japan and into the world in the 1960s, our brand was less wellknown than our counterparts in Europe and the United States, and we encountered great difficulties in terms of sales.
However, the efforts eventually paid off. At present, our products are installed in many of the world’s most famous buildings. Of course, we have experienced challenges and have not always managed to achieve our goals, but we will never give up and will keep moving forward with a positive attitude.
In addition, if we provide high-quality products to our customers, we will not betray their trust in us. I think we have no choice but to stick to this belief and keep going on. What is your management philosophy?
“Suit the action to the word.” As a Chinese saying goes, it is easier said than done. We must take action in order to get things done. “Suit the action to the word” means you need to take action continuously. It is the driving force of success.
Moreover, trust must be established during the process. For instance, the relationship between subordinates and superiors, the company and customers, operators and employees. Through the establishment of this trust relationship, business activities can be carried out smoothly and will benefit from it. What is your most unforgettable experience in China since Fujitec entered more than 20 years ago?
I was impressed by the rapid growth of our elevator businesses in China, from nothing to our current market scale. Our production capacity has been greatly enhanced, with the construction of facilities in Langfang in Hebei province and Shanghai.
Chinese cities have experienced great changes in recent years, which provides good opportunities for us to expand our businesses.