Tokyo, Japan – Mitsubishi Electric Corporation announced that it will transfer its building systems business and assets, including the manufacture and sales of elevators and escalators, to its wholly-owned subsidiary Mitsubishi Electric Building Techno-Service Co., Ltd. (MELTEC). The transfer will be achieved by means of an absorption-type company split (“Company Split”); certain information is accordingly being omitted from this announcement.
Purpose of company split
In its medium-term management plan for fiscal 2026, Mitsubishi Electric identified the building systems business as one of its key growth areas, and the company is accordingly working to expand the scale of this business and improve its profitability by investing management resources more intensively to drive growth.
In order to further strengthen its global competitiveness and improve efficiency, Mitsubishi Electric has decided to consolidate its management structure by transferring its building systems business, which is mainly responsible for new installations of elevators and escalators, to a wholly-owned subsidiary primarily responsible for the maintenance and renewal of elevators and escalators.
Through this business integration, Mitsubishi Electric and MELTEC will achieve an integrated business operation covering all aspects of the elevator and escalator business, from new installations to maintenance and replacement. At the same time, the two companies aim to help address various social issues, such as the realization of a decarbonized society, by providing new one-stop solutions that leverage the core building facilities, field knowledge, and maintenance and operation management data and know-how accumulated by the two companies.