Banking On KSA

TKE and Alat successfully close strategic partnership and JV.

In August, TK Elevator (TKE) announced that Alat has completed a strategic partnership investment, becoming a long-term, direct shareholder in TKE with a 15% stake, a testament to TKE’s operational strength and long-term value creation potential. The EUR160-million (US$184.6-million) joint venture (JV) will manufacture and provide vertical- and horizontal-transportation solutions in the Kingdom of Saudi Arabia (KSA) and the greater Middle East and North Africa (MENA) region. These milestones create a platform for strong future organic growth across the region. Further, both Alat and TKE said the partnership promises to help KSA achieve Saudi Vision 2023, a government program launched by Saudi Arabia in 2016 that aims to achieve the goal of increased diversification economically, socially and culturally in line with the vision of Saudi Crown Prince and Prime Minister Mohammed bin Salman.^[1]

Alat, a Saudi Public Investment Fund (PIF) company, confirmed receipt of all statutory and regulatory approvals required to close their JV. Alat also announced it is a significant long-term direct shareholder in TKE with its 15% stake and has joined  the investor consortium. The approvals complete a plan first announced in February 2025.

The newly formed JV will be headquartered in KSA and locally manufacture elevators, escalators and moving walks. Supported by a local product development center, it will be the first elevator and escalator manufacturing operation in Saudi Arabia by a global company, fully aligned with the PIF’s economic-diversification agenda. The JV will serve as the TKE sales and service entity in Saudi Arabia.

“Together, we will power the Kingdom’s giga-projects and export sustainable innovation throughout the region, fulfilling Vision 2030 and advancing Alat’s mandate to build a world-class manufacturing hub.”  

— Alat CEO Amit Midha

TKE will contribute to Alat and Saudi Arabia advanced technology, manufacturing expertise and world-class safety methodology. The JV will serve as an innovation hub, featuring a product-development center and a training facility that complements TKE’s SEED Campus. Together, TKE and the JV will create a regional International Technical Services team to provide technical support and third-party maintenance under the TKE Universal Service support offering.

The partnership reinforces TKE’s dedication to improving urban life with innovative solutions and services for smart city mobility and will place TKE in a position to capitalize on one of the fastest growing and most innovative new installation markets globally. 

Uday Yadav, CEO of TKE, said:

“Finalizing the JV and welcoming Alat as a long-term shareholder positions TKE to meet surging demand for innovative mobility solutions during Saudi Arabia’s development super-cycle and beyond. We are excited to deepen this multi-dimensional partnership and shape the smart cities of the future together.”

Amit Midha, CEO of Alat, added:

“Today’s approvals mark a decisive step in positioning Saudi Arabia as a global center for advanced manufacturing. Our partnership with TKE will localize cutting-edge mobility technology, create high-value skilled jobs and embed world-class expertise in Saudi talent, further strengthening the Kingdom’s emerging advanced manufacturing cluster. Together, we will power the Kingdom’s giga-projects and export sustainable innovation throughout the region, fulfilling Vision 2030 and advancing Alat’s mandate to build a world-class manufacturing hub.”

About TKE

TK Elevator (TKE) is a global leader in vertical transportation and urban mobility. It provides engineering that keeps the world moving, from design to installation and maintenance on any brand of elevators, escalators, walkways, lifts, passenger boarding bridges, stairlifts, platform lifts and home elevators. With digital solutions like AGILE and the Internet of Things platform, MAX, TKE believes there are no longer any limits to urban mobility. TKE became independent following its separation from the thyssenkrupp group in 2020 and is majority owned by Advent and Cinven with a wholly owned subsidiary of the Abu Dhabi Investment Authority, GIC, RAG-Stiftung and thyssenkrupp AG as significant co-investors. The company achieved sales of EUR9.3 billion (US$10.7 billion) and adjusted earnings before interest, taxes, depreciation and amortization of EUR1.5 billion (US$1.7 billion) in fiscal year 2023-2024. TKE has approximately 50,000 employees, 25,000 service technicians and more than 1,000 support centers globally.

About Alat

Alat is a company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in the KSA powered by clean energy to build a better tomorrow. Alat will deliver sustainable manufacturing to help global companies reduce their emissions and move toward carbon-zero manufacturing. Alat, a PIF company, is an essential enabler of the Vision 2030 goals for economic diversification, industrial development, innovation and job creation.

Alat’s primary goal is to ensure global companies set up sustainable manufacturing solutions in KSA, benefitting from abundant green energy resources, the country’s unique geolocation and its investments in technology. Initially, its key strategic business areas will be semiconductors, smart devices, smart buildings, smart appliances, smart health, advanced industrials, next-generation infrastructure technologies, electrification and AI infrastructure. For more information visit alat.com.

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Reference

[1] en.wikipedia.org/wiki/Saudi_Vision_2030