Toshiba aims to double its UAE turnover

With the slowdown in real estate sector, Toshiba Elevators is diversifying in the region and is expecting that fresh orders from Abu Dhabi, Qatar and Oman will keep the company on the growth track.

"In the UAE, we expect to double the turnover of 2009 – which means about Dh160 million worth of projects in 2010 – and for 2011, the target is about Dh210m worth of projects. Globally, we expect that we shall stabilise our position even though there is a downturn in Japan," said Shunichi Kimura, Global President and CEO, Toshiba Elevator and Building Systems Corporation, in an interview with Emirates Business. He said the company plans to enter the Indian market.

The region has gone through an economic turmoil following the global recession. What's the status of Toshiba's position in the region?

We are performing well as we are concentrating on areas that are aggressively growing, such as Abu Dhabi.

How big is the Mideast compared to Toshiba Elevators' global market?

The Middle East is one of the biggest overseas global markets for Toshiba. At the moment, it is next to China's. In the Middle East, Dubai saw a temporary setback but it will again boom soon; and [about] Abu Dhabi, we are very confident that the market is steady as many projects are coming up and record shows until 2030 current construction activities will continue. In Saudi Arabia, there is demand and hence supply is a must. There, pilgrimage happens not only during Haj but round the year… so many buildings are coming up. Likewise Oman and Qatar have good potential.

Real estate took the biggest hit in the downturn. Since you have been directly connected to real estate, how much was Toshiba Elevators affected?

The recession did affect us in Japan. However, we are growing in China and other areas, which are compensating for the downturn of Japan. As far as the UAE is concerned, at the moment we have more orders from Abu Dhabi, which is again compensating the low turnout of Dubai projects. We are reasonably safe.

When does Toshiba Elevators expect to see return to pre-recession figures?

We expect that the market will bounce back in another two-three years' time. In the meantime, we are trying to spread to other areas in the Middle East, such as Oman, Saudi Arabia and Qatar, so that our volume is not affected.

What is the Toshiba Elevators' projection this year and the next?

In the UAE, we expect to double the turnover of 2009 – which means about Dh160m worth of projects in 2010 – and for 2011, the target is about Dh210m worth of projects. Globally, we expect that we shall stabilise our position even though there is a downturn in Japan.

How does Toshiba Elevators keep pace with the ever-changing technology?

We are very much in touch with the latest technology. We are the pioneer in double-deck elevators, which have 1.9 times the capacity of normal elevator. And we are also in the Guinness World Records for fastest elevator (1,010 metres per minute), which is installed in Taipei 101. We are the first elevator manufacturer to introduce machine-room-less technology in Japan market.

Also we are the world's first in magnetic suspension for elevators, in which lifts are run without guide rails.

This innovative technology enhances riding comfort of the elevators greatly compared with the existing technology.

We developed and installed in Tokyo outdoor-type observation elevator for high rise buildings, and this elevator has a structure that the lifts cabin overhangs from a wall – this makes people feel like they are floating in air and makes the view even more beautiful. The speed is 360 metre per minute, and this is the world's fastest in outdoor-type observation elevators. Then, we have developed a new system for a measure of wind and rain and operation system to deal promptly with any weather change, such as slowdown in case of strong winds and stoppage at the nearest floor when thunder is approaching. We have been contracted to install six high-speed, large-capacity elevators in Tokyo Sky Tree, a project that will be completed by 2012. Out of the six elevators, four have 40-person capacity with a speed of 600 metre per minute, which is the fastest in Japan in that capacity class. We are at par with or at the cutting-edge of technology.

How much has the slowdown affected Toshiba Elevators' research and development budget?

We have not reduced our R&D budget. We are increasing it budget, in fact, and this is a continuous process. Our 150-metre high elevator research tower, at our Fuchu operations in Tokyo, is focusing on R&D activities. This world-class R&D facility allows us to take longer strides in all fields, including testing and commissioning for high-speed acceleration control, anti-oscillation measures, noise reduction, etc.

What is Toshiba Elevators' general plan for the Middle East and India?

Now that we are comfortably established in the UAE, we are targeting Oman, Saudi Arabia and Qatar. We are seriously looking at opportunities in India and soon we will establish a full-fledged operation there. Talks are on with large industrial houses in India for possible tie-ups.

PROFILE: Shunichi Kimura Global President and CEO, Toshiba Elevator and Building Systems Corporation

In April 1975, Kimura joined Toshiba Corporation. From 1975 to 2000, he held various key positions. In April 2006, he became the President and CEO, Social Infrastructure Systems Company, and in April 2007, he was the Executive Vice-President of Toshiba and President and CEO, Social Infrastructure Systems. In April 2008, Kimura became the President and CEO of Toshiba Elevator and Building System

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