TKE and Alat announce JV to manufacture VT solutions locally to serve large-scale developments in the Kingdom and beyond.
submitted by TKE
images courtesy of TKE
TK Elevator (TKE) and Alat, a Saudi Public Investment Fund (PIF) company, announced in February they are forming a EUR160-million (US$167-million) joint venture (JV) to manufacture and provide elevator and escalator solutions in Saudi Arabia and the Middle East and North Africa (MENA) region, powering future organic growth. Alat will also invest to become a significant long-term shareholder in TKE, capitalizing on the company’s strong growth potential.
The JV will bring mobility products, solutions and manufacturing to the Kingdom of Saudi Arabia (KSA), supported by a local product development center. Alat will also become a direct TKE shareholder and member of the current investment consortium with a 15% stake, a testament to TKE’s operational strength and its attractive value creation prospects. The transaction is expected to close by the end of the third quarter, subject to customary statutory and regulatory approvals. This partnership will deliver innovative end-to-end elevator and escalator solutions manufactured in Saudi Arabia, aligning with the PIF’s focus on economic diversification.
The newly formed entity, headquartered in Saudi Arabia, will, over time, locally manufacture elevators, escalators and moving walks for Saudi Arabia and the wider MENA region, establishing the first elevator and escalator manufacturing operation in Saudi Arabia by a global company. The JV will also serve as TKE’s sales and service entity in Saudi Arabia and will utilize the MENA region network to enhance business in the region.
The partnership reinforces TKE’s dedication to improving urban life with innovative solutions and services for urban mobility and will place TKE in a position to capitalize on one of the fastest growing and most innovative new installation markets globally. This JV is strategically positioned to meet the growing demand for mobility solutions within Saudi Arabia’s ambitious giga-projects and other large-scale developments throughout the region.
This partnership marks another important milestone in our transformation journey and represents a new era that underscores TKE’s active participation in the upcoming development supercycle in KSA.
— TKE CEO Uday Yadav
TKE will bring Alat and Saudi Arabia leading technology, manufacturing expertise and safety methodology. The JV will serve as an innovation hub, including a product development center and a training center, complementing TKE’s SEED Campus that provides comprehensive, globally standardized elevator training programs ranging from technical skills to management.
TKE and the JV commit to developing a regional International Technical Services network team to implement technical customer support and develop third-party maintenance support capabilities under the TKE Universal Service value proposition. TKE CEO Uday Yadav said:
“We are privileged to form a game-changing JV with Alat to support the Kingdom’s vision and power TKE’s future organic growth. This partnership marks another important milestone in our transformation journey and represents a new era that underscores TKE’s active participation in the upcoming development supercycle in KSA, while reinforcing our capabilities in building smart cities of the future across the globe. Additionally, we are very pleased to welcome Alat as a direct shareholder and long-term investor in our company overall and look forward to benefiting from their engagement.”
Alat CEO Amit Midha added:
“Alat’s partnership with TKE is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics. This aligns with the PIF’s strategy to diversify the Saudi economy and develop key sectors, thereby contributing to the realization of Vision 2030’s objectives for sustainable urban development and economic growth.”
This JV will leverage Alat’s extensive relationships and local market insight in the region and TKE’s current business in KSA, as well as outstanding technology and global manufacturing, R&D and services expertise.
About TKE
TKE is a global leader in vertical transportation and urban mobility. The OEM provides engineering from design to installation and maintenance on any brand of elevators, escalators, walkways, lifts, passenger boarding bridges, stairlifts, platform lifts and home elevators complemented by its digital solutions including AGILE and the Internet of Things platform MAX. 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$9.7 billion) and adjusted earnings before interest, taxes, depreciation and amortization of EUR1.5 billion (US$1.57 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 TKE’s Partner Alat
Alat, alat.com, is 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 that global companies set up sustainable manufacturing solutions in the 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-gen infrastructure technologies, electrification and AI infrastructure.
Get more of Elevator World. Sign up for our free e-newsletter.
