IFE Elevator lifts expansion outlook

Manufacturing company's business strategy presses the button for overseas venture, report Li Wenfang in Dongguan, Guangdong, and Lyu Chang in Beijing.

IFE Elevator Co, one of China's largest elevator manufacturers, is considering starting a plant in South America, with its main focus being Brazil.

Brazil's large population and positive economic outlook as part of the group of emerging economies known as BRICS - Brazil, Russia, India, China and South Africa - means a robust demand for elevators, said Xin Quanzhong, chief operating officer of IFE, which is based in Dongguan, Guangdong province, in South China.

A Brazilian plant would cut the transportation costs, he said, adding that the company began sales to Brazil last year.

"The Brazilian government is encouraging foreign investors to set up plants," Xin said, though citing such challenges as differences in language, culture and the legal system.

"But going global is a trend, and a company making such a move should fortify its foundation in technology, and its compliance with foreign standards and services," he said.

China exported 65,968 elevators valued at $1.812 billion last year, up 19.12 percent and 19.46 percent, respectively, according to a report of Saier Media.

Last year, the top three export markets for China's elevator and escalator brands were Russia, South Korea and Brazil. At the same time, Asia also had a large demand for Chinese elevators, with South Korea, Malaysia and Indonesia being the leading export destinations.

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