Hitachi Elevator Further Expands the "Two Old" Market
At GAC Center Tower in Guangzhou, when a passenger presses the lobby elevator button, one elevator will light up immediately. Passengers can get ready in advance, avoiding the scenario where multiple elevators travel down to the ground floor at once with no waiting passengers. This is markedly different from the previous elevator experience in the building.
This is the outcome of renovation work carried out by Hitachi Elevator (China) Co., Ltd. (hereinafter referred to as Hitachi Elevator). The six original elevators at GAC Center were installed in 2012 and operated separately in high and low zones; high-zone elevators did not stop at floors 5 to 15. Initially, the elevators could basically meet operational demands. However, as foot traffic in the building increased, waiting times became excessively long during peak hours. During off-peak periods, multiple elevators would “compete” for just one or two passengers, a common sight in many buildings today.
Guangzhou was at the forefront of China’s reform and opening-up. Starting from the 1980s, Guangzhou began constructing numerous high-rise buildings widely equipped with elevators. More than forty years on, society has put forward new requirements for elevators in terms of energy saving, epidemic prevention and convenience. Markets for old elevator renovation and elevator installation in existing buildings have emerged.
Meanwhile, entering 2021, China’s economy faced triple pressures: contracting demand, supply shocks and weakening expectations. The peak of new real estate development projects had passed, inevitably impacting the elevator industry. Adjusting business strategies became a critical issue for all enterprises.
Hitachi Elevator promptly revised its business strategy to explore the “Two Olds” market, namely old elevator renovation and elevator installation in existing buildings, sustaining steady business growth amid major shifts in the domestic market.
Gaining Experience from Old Elevator Renovation
At GAC Center, Mr. Zhang, who managed the old elevator renovation project, told the author: “The old elevator renovation cuts power consumption by more than 15% and greatly reduces staff waiting time. Especially since corporate conferences are mostly held in the auditorium on the 32nd floor, after the group control renovation, the six elevators can distribute conference attendees simultaneously, greatly improving elevator operation performance.”
Hitachi Elevator engineers reviewed the renovation process. Previously, high-rise elevators skipped floors 5 to 15. After conversion into group-controlled elevators, 30 new landing door openings needed to be added. Adding door openings and replacing elevators while GAC Center remained fully operational, all within a 60-day timeframe, required precise engineering scheduling. “This project helped Hitachi Elevator accumulate new experience in old elevator renovation, including coordinating with building construction, replacing motors and elevator cars. Property owners now impose extremely stringent management requirements for renovation projects. Apart from sufficient technical capacity of equipment suppliers, construction contractors undertaking such elevator renovation projects must hold Class A professional general contracting qualifications for building construction.” Many similar buildings exist across China’s property sector, leaving huge room for renovation.
The handover ceremony for old elevator removal and replacement at Guangzhou Baiyun Hotel launched on December 6 demonstrated a similar engineering approach to that of GAC Center.
Guangzhou Baiyun Hotel is a well-known five-star business hotel in downtown Guangzhou. To expand foreign trade and meet the needs of the Canton Fair, the central government decided to build Baiyun Hotel in Guangzhou. Standing 120 meters high with 34 floors including one basement level, it was China’s tallest building at that time and was put into service in 1983 after 38 years of operation. Hitachi Elevator commenced elevator renovation and upgrading work here on September 23, 2021.
Like GAC Center, renovation proceeded while the hotel stayed open, demanding sophisticated demolition and installation technologies. The author noted that the hotel is located in the city centre adjacent to buildings such as Friendship Store, leaving limited space for the elevator company to store materials. “Materials must be delivered directly to installation sites immediately upon arrival for seamless handover,” explained Xu Junjie, General Manager of Hitachi Elevator Engineering Headquarters.
The renovation project at Baiyun Hotel retained the guide rails and door frames of the old elevators. Design and construction fully considered the original positions and spacing of guide rails to fit matching components including sills, landing doors and elevator cars. Construction safety was prioritized. Demolition of old equipment and hoisting of new machinery in the machine room posed great challenges. Narrow stairways leading to the machine room blocked equipment transportation, so a professional hoisting platform was built on the roof.
Hitachi Elevator overcame various construction difficulties and installed a group control system. The new elevators can implement intelligent zoning and scheduling according to usage conditions, transporting passengers to destinations in a more efficient manner and improving travel efficiency.
After the completion of the first batch of elevator upgrades on December 6, Baiyun Hotel signed a new agreement with Hitachi Elevator for the renovation of the remaining elevators.
Huge Business Opportunities in the “Two Olds” Elevator Market
In Guangzhou, the author had an interview with Xu Junjie, General Manager of Hitachi Elevator Engineering Headquarters.
Faced with the triple pressures starting from 2021 and limited growth in the new elevator market, how should enterprises adjust business directions and seek new growth drivers? These were the author’s key questions.
Xu Junjie stated: “By the end of 2020, China’s elevator inventory exceeded 7.8 million units. It is estimated that more than 2.7 million elevators will undergo renewal and renovation between 2019 and 2030. For elevators with long service lives, Hitachi not only adopts stricter maintenance plans during routine upkeep but also carries out comprehensive inspections and upgrade planning to ensure safe and reassuring elevator operation.” Thanks to experience accumulated from projects such as GAC Center and Baiyun Hotel, together with strong R&D and manufacturing capabilities, Hitachi Elevator does not merely pursue market share in new construction projects but has fully prepared in advance for elevator renewal and renovation.
“Under Hitachi Elevator’s three-year medium-term plan, next year marks the start of the 2022–2024 plan, and we remain fully confident about future development,” Xu Junjie said. Amid the COVID-19 pandemic and the end of rapid expansion in China’s real estate sector, elevator manufacturers are undergoing a transition period, and Hitachi Elevator has demonstrated remarkable operational resilience.
Hitachi Elevator closely monitors changes in consumer-facing business, including elevator installation in existing buildings, old elevator renovation and replacement, and residential elevator markets. In March 2021, the company began rolling out residential elevator experience centres and online e-commerce platforms nationwide to meet regional market demands.
In the future, renovation work within the “Two Olds” market must fully consider building characteristics and elevator usage requirements for different scenarios. Through projects such as GAC Center and Baiyun Hotel, Hitachi Elevator has demonstrated its capability to deliver customized upgrade solutions covering design schemes, construction protection, construction periods and elevator functions. It can minimize disruption to passengers while guaranteeing renovation quality. These factors underpin the company’s efforts to seize market opportunities in China and achieve growth amid headwinds.