TOKYO, October 18, 2021--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today 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.
1. 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.
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