Joint Venture Agreement for Shanghai Mitsubishi Elevator Co., Ltd. Renewed
Mitsubishi Electric, Mitsubishi Electric Building Solutions, and Shanghai Electric Group have agreed to renew the joint venture agreement for Shanghai Mitsubishi Elevator Co., Ltd. for another 20 years. This aims to adapt to changes in the Chinese market and expand business globally.
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- 📰 Published: May 11, 2026 at 20:03
- 🔍 Collected: May 11, 2026 at 11:31
- 🤖 AI Analyzed: May 12, 2026 at 04:09 (16h 37m after Collected)
Photo (from left): Mr. Wan Zhongpei, President of Shanghai Mitsubishi Elevator; Mr. Kei Urakami, Executive Officer and President of Mitsubishi Electric; Mr. Wu Lei, Chairman of Shanghai Electric Group; Mr. Iwao Oda, Head of Building Systems Business Division, Mitsubishi Electric / President, Mitsubishi Electric Building Solutions Corporation.
Mitsubishi Electric Corporation (hereinafter, Mitsubishi Electric) and Mitsubishi Electric Building Solutions Corporation (hereinafter, MEBS) have agreed to extend the joint venture agreement for Shanghai Mitsubishi Elevator Co., Ltd. (Shanghai, People's Republic of China; hereinafter, SMEC), a joint venture between Mitsubishi Electric and Shanghai Electric Group Co., Ltd. (Headquarters: Shanghai, People's Republic of China; hereinafter, Shanghai Electric Group), for another 20 years, renewing the third-term joint venture agreement which was set to expire in December 2026.
Mitsubishi Electric and MEBS will continue to provide products and services that meet the needs of the Chinese elevator and escalator market together with SMEC, and in the future, aim for further global business expansion through the collaboration of the three companies.
Background and Aim of the Joint Venture Agreement Renewal
Mitsubishi Electric established SMEC in Shanghai in December 1986 in a joint venture with Shanghai Electric (Group) Corporation, becoming the first Japanese elevator and escalator manufacturer in China to commence a comprehensive elevator and escalator business covering manufacturing, sales, installation, and maintenance. Since then, it has led the Chinese elevator and escalator market with a two-brand strategy centered on the Mitsubishi brand's flagship "MAXIEZ" series, developed by Mitsubishi Electric Shanghai Electric Elevator Co., Ltd. (Headquarters: Shanghai, People's Republic of China), and SMEC brand products.
In recent years, the demand for elevators and escalators in China has undergone a structural change, with the expansion of new installation demand slowing down, while the number of operating elevators and escalators has increased, leading to an anticipated significant increase in demand for maintenance and renewal. Globally, demand in the volume segment of new installation markets, primarily for residential and public infrastructure, is rapidly increasing in regions such as the Middle East, ASEAN, India, and Africa.
Mitsubishi Electric, which positions its Building Systems business as one of its key growth businesses, is promoting its business growth strategy together with MEBS, its consolidated subsidiary that operates the elevator and escalator business globally. This time, seizing the opportunity of changes in the demand structure of the Chinese market and the increase in global new installation demand, Mitsubishi Electric and MEBS have agreed to further strengthen their collaborative relationship with Shanghai Electric Group and aim for further business expansion of SMEC, in order for the Building Systems business to continue growing in the Chinese and global markets.
During the next joint venture period, which has been agreed upon, the companies will accelerate the expansion of maintenance and renewal menus and the deployment of multi-brand maintenance and renewal, thereby building a foundation to respond to changing demand.
For the vast existing market in China, in addition to promoting energy saving and extending the lifespan of buildings through the expansion of elevator and escalator renewal menus, the companies will accelerate the introduction of SMEC's independently developed IoT platform. This will aim to improve operational stability and efficiency through advanced remote monitoring and control.
Furthermore, by leveraging SMEC's excellent ability to meet customer specifications and its price competitiveness, the companies aim to acquire new demand in growth markets such as the Middle East, ASEAN, and India. They will strengthen global sales by expanding exports of SMEC products through MEBS's global sales network.
Through this collaboration, which utilizes the strengths of both companies, they will strengthen a stable business foundation within China and promote a strategy for expanding the elevator and escalator business globally.
Comments from Stakeholders
Mr. Wu Lei, Chairman, Shanghai Electric Group Co., Ltd.
"We are delighted to have agreed to the renewal of the third-term joint venture agreement concerning Shanghai Mitsubishi Elevator Co., Ltd. with Mitsubishi Electric and Mitsubishi Electric Building Solutions Corporation. Based on the mutual trust and collaborative achievements built over many years, we will further strengthen our response to the Chinese market and promote sustainable growth in the global market together with our partners."
Mr. Kei Urakami, Executive Officer and President, Mitsubishi Electric Corporation
"We are very pleased to have concluded the renewal of the third-term joint venture agreement with Shanghai Electric Group. With this contract renewal as an opportunity, we will support the transformation to a business structure that captures changes in the Chinese market, such as the increase in renewal demand and advanced maintenance needs, and contribute to improving brand power in the global market."
Mr. Iwao Oda, Head of Building Systems Business Division, Mitsubishi Electric Corporation / President, Mitsubishi Electric Building Solutions Corporation
"We are pleased to have reconfirmed our strong partnership with our partners during this contract renewal. We will continue to deepen the ties between our two companies and provide products and services that meet the needs of our customers not only in China but also globally."
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Mitsubishi Electric Corporation (hereinafter, Mitsubishi Electric) and Mitsubishi Electric Building Solutions Corporation (hereinafter, MEBS) have agreed to extend the joint venture agreement for Shanghai Mitsubishi Elevator Co., Ltd. (Shanghai, People's Republic of China; hereinafter, SMEC), a joint venture between Mitsubishi Electric and Shanghai Electric Group Co., Ltd. (Headquarters: Shanghai, People's Republic of China; hereinafter, Shanghai Electric Group), for another 20 years, renewing the third-term joint venture agreement which was set to expire in December 2026.
Mitsubishi Electric and MEBS will continue to provide products and services that meet the needs of the Chinese elevator and escalator market together with SMEC, and in the future, aim for further global business expansion through the collaboration of the three companies.
Background and Aim of the Joint Venture Agreement Renewal
Mitsubishi Electric established SMEC in Shanghai in December 1986 in a joint venture with Shanghai Electric (Group) Corporation, becoming the first Japanese elevator and escalator manufacturer in China to commence a comprehensive elevator and escalator business covering manufacturing, sales, installation, and maintenance. Since then, it has led the Chinese elevator and escalator market with a two-brand strategy centered on the Mitsubishi brand's flagship "MAXIEZ" series, developed by Mitsubishi Electric Shanghai Electric Elevator Co., Ltd. (Headquarters: Shanghai, People's Republic of China), and SMEC brand products.
In recent years, the demand for elevators and escalators in China has undergone a structural change, with the expansion of new installation demand slowing down, while the number of operating elevators and escalators has increased, leading to an anticipated significant increase in demand for maintenance and renewal. Globally, demand in the volume segment of new installation markets, primarily for residential and public infrastructure, is rapidly increasing in regions such as the Middle East, ASEAN, India, and Africa.
Mitsubishi Electric, which positions its Building Systems business as one of its key growth businesses, is promoting its business growth strategy together with MEBS, its consolidated subsidiary that operates the elevator and escalator business globally. This time, seizing the opportunity of changes in the demand structure of the Chinese market and the increase in global new installation demand, Mitsubishi Electric and MEBS have agreed to further strengthen their collaborative relationship with Shanghai Electric Group and aim for further business expansion of SMEC, in order for the Building Systems business to continue growing in the Chinese and global markets.
During the next joint venture period, which has been agreed upon, the companies will accelerate the expansion of maintenance and renewal menus and the deployment of multi-brand maintenance and renewal, thereby building a foundation to respond to changing demand.
For the vast existing market in China, in addition to promoting energy saving and extending the lifespan of buildings through the expansion of elevator and escalator renewal menus, the companies will accelerate the introduction of SMEC's independently developed IoT platform. This will aim to improve operational stability and efficiency through advanced remote monitoring and control.
Furthermore, by leveraging SMEC's excellent ability to meet customer specifications and its price competitiveness, the companies aim to acquire new demand in growth markets such as the Middle East, ASEAN, and India. They will strengthen global sales by expanding exports of SMEC products through MEBS's global sales network.
Through this collaboration, which utilizes the strengths of both companies, they will strengthen a stable business foundation within China and promote a strategy for expanding the elevator and escalator business globally.
Comments from Stakeholders
Mr. Wu Lei, Chairman, Shanghai Electric Group Co., Ltd.
"We are delighted to have agreed to the renewal of the third-term joint venture agreement concerning Shanghai Mitsubishi Elevator Co., Ltd. with Mitsubishi Electric and Mitsubishi Electric Building Solutions Corporation. Based on the mutual trust and collaborative achievements built over many years, we will further strengthen our response to the Chinese market and promote sustainable growth in the global market together with our partners."
Mr. Kei Urakami, Executive Officer and President, Mitsubishi Electric Corporation
"We are very pleased to have concluded the renewal of the third-term joint venture agreement with Shanghai Electric Group. With this contract renewal as an opportunity, we will support the transformation to a business structure that captures changes in the Chinese market, such as the increase in renewal demand and advanced maintenance needs, and contribute to improving brand power in the global market."
Mr. Iwao Oda, Head of Building Systems Business Division, Mitsubishi Electric Corporation / President, Mitsubishi Electric Building Solutions Corporation
"We are pleased to have reconfirmed our strong partnership with our partners during this contract renewal. We will continue to deepen the ties between our two companies and provide products and services that meet the needs of our customers not only in China but also globally."
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