Otis shuts down old plant and invests in new unit
Valor Econômico
At the entrance of the Otis office, in an industrial neighborhood of Sao Bernardo do Campo, in the Metropolitan Region of São Paulo, the President of the company for North and South America, Randy Wilcox, points to a model of open elevator, where are the machine, the traction straps, and its operating system are visible. "Here we save on one floor", says the Executive. With the statement he summarizes what the Brazilian production of the American manufacturer of elevators will become.
Today, Wilcox meets with the Mayor of the city, Luiz Marinho (PT, Labor Party) to announce the construction of a new plant in the city. With investments of more than US$ 30 million, nearly 20 thousand square meters will house a manufacturing unit, an area for engineering tests, and new offices. The new plant will allow the productive capacity of the Brazilian subsidiary of Otis to grow 50%.
Without providing details on the production, the Executive projects the conclusion of the construction for sometime in the second quarter of 2012. "In that unit we will produce our elevators only with new technologies. It is a means to increase the portfolio. We will not leave any product in the old technology", he explains. The unit will produce a line of elevators whose moving system uses a gearless compact machine that eliminates the need for a machinery room, which causes the construction to get bigger.
Following the global strategy of the American company, the new plant will also include sustainable initiatives in its construction and products. The system of elevators - based on the traction of steel straps covered with polyurethane, which do not require lubrication - may consume up to 70% less energy compared to the traditional systems, according to the Executive.
With the technologies, the company intends to achieve several types of construction, from residential buildings aimed at the lower income classes, to those projected for the FIFA World Cup and the Olympiads to be held in the country. Wilcox guarantees that even having higher added value, the elevators can be competitive for the simplest constructions. That because its price is similar to that of traditional elevators and the Brazilian production should generate gains of scale, since it will be entirely focused on the technology.
Wilcox's visit to the country, accompanied by Steve Healy, Regional VP for Latin America, reveals an important moment for the sector of elevators. According to Wilcox, it is the first time the Brazilian market has outperformed the American. The subsidiary does not reveal the amount, but last year its earnings grew 17%. Worldwide, the sales of Otis decreased from US$ 11.7 billion in 2009 to US$ 11.6 billion in 2010. In those results, Latin America - whose largest market is the Brazilian - contributed with more than US$ 500 million. "The operations in the emerging countries allow us to continue growing even with a weaker market in the USA and Europe", says Wilcox.