Otis Elevator Korea Co. announced it was uniting its research resources scattered across three different locations under one roof in the free economic zone in Songdo of Incheon to focus brainpower in development of smart or connected elevators.

The company on Tuesday signed a memorandum of understanding (MoU) with the Incheon City and Incheon Free Economic Zone Authority to build state-of-the art research and production facilities.

The new R&D center, commanding a total of 15,600 square meters, will start construction in September for completion by 2018. The complex will not only house R&D and production facilities but also the centers for component supply, modernization system, and quality control.

The center would bring together R&D sites in Seoul, Incheon, and Changwon to augment its research capacity in developing new technologies based on the Internet of Things.

Connected elevators are one example. Commercialization of these elevators would enable remote-controlled repair and maintenance. Last year, Otis established a system that provides real-time reports to engineers in case of elevator stops and malfunctions. The data is then accumulated as big data in the cloud to be used for reference in future repairs.

Otis Korea will collaborate with nine R&D centers worldwide, including Germany, Japan, and the U.S., to make Songdo the R&D hub of Northeast Asia, said a company official. “We intend to raise operational efficiency by directly manufacturing more of our core elevator components which tend to be more high-tech.”

At the MOU ceremony were the mayor of Incheon, head of the Incheon Free Economic Zone Authority, and key Otis executives. Philippe Delpech, president of Otis Elevator, stressed that Korea’s superior R&D and production capacity will be a major piece in the company’s global business strategy. Cho Ik-seo, president of Otis Elevator Korea, said that the elevator industry is at a crossroads due to the fourth industrial revolution and that Korea will spearhead the change by building the infrastructure to lead the elevator industry not only in Korea but throughout Northeast Asia.

Otis Elevator is the world’s leading manufacturer of elevators with businesses in over 200 countries. The company ranked third in Korea’s elevator market last year with a 11.7 share, trailing behind Hyundai Elevator (41.3%) and ThyssenKrupp (25.9%).

By Kim Jung-hwan

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