IEE expects sales from air-conditioning business to grow 5-10%

INTERNATIONAL Elevator & Equipment, Inc. ( IEE) expects revenues from its local commercial and industrial airconditioning business to grow between 5% and 10% this year as it gets a boost from the introduction of newly acquired Italian brand Climaveneta.

IEE, the Philippine company led by Japan’s Mitsubishi Electric, on Monday introduced Climaveneta to the local market, banking on the country’s sustained economic growth.

“We would like to do this business starting this year,” said IEE President Ramoncito A. Ocampo during the launch at New World Makati Hotel. “The construction business is still growing and we would like to be part of it.”

The move comes after Mitsubishi Electric’s global acquisition of two Italian companies Climaveneta S.p.A. and RC Group S.p.A. under Mitsubishi Electric Hydronics and IT Cooling Systems S.p.A.

“We are optimistic of the continued growth of the HVAC ( heating, ventilation and airconditioning) market in the Philippines, bolstered by the uptrend in economic and business activities of companies, locators and manufactures in the country,” Mr. Ocampo said.

Customers for Climaveneta products are malls, five- star hotels, big establishments such as casinos, thus IEE is looking at business deals with some of the country’s leading developers.

Mr. Ocampo said the company in the past had a hard time competing with US air-conditioning brands, but with Climaveneta, which he described as a known brand in Europe, IEE has expanded its reach to include malls and developments that use big capacity equipment.

Climaveneta’s product line of oil- less water cooled and air- cooled chillers for big establishments can latch on to IEE’s package of offerings, which include elevators, escalators, ventilators and hand dryers under the Mitsubishi Electric brand, he said.

In absolute value, Mr. Ocampo said the forecast contract amount for the Climaveneta business is at P180 million for the calendar year starting next month and ending in March 2018.

“As far as we are concerned, we know all the developers,” he said, citing among its past clients the developers of New World Makati Hotel, Conrad Hotel, the new head office of BDO Unibank, Inc. and Grand Hyatt Manila.

Mitsubishi Electric is also the supplier of the “moving walk,” the covered pedestrian bridge that links NAIA Terminal 3 to the Newport City complex.