Mitsubishi sets its target on Europe

Mitsubishi Electric Corporation acquired Motum AB four years ago. Since then, the Swedish group has grown steadily. Lift companies from Sweden, Norway and Ireland were incorporated.

In April, Mitsubishi Electric established the European Regional Headquarters of Mitsubishi Electric Building Solutions (European RHQ) to drive further expansion in Europe. We asked its head, Fredrik Eliasson, who is also CEO of Motum, about the strategy.

Fredrik Eliasson. Photo: © Motum

Why did Mitsubishi Electric Building Solutions (MEBS) initially focus on the Scandinavian market in its acquisitions?
Eliasson: MEBS initially focused on the Scandinavian market because it was considered an attractive market and because the Motum platform was seen as a good basis for further expansion in Europe.

The competence within service and modernisation was also an important factor. Motum companies have many years of experience working with lifts from different manufacturers, and this expertise is something Mitsubishi Electric Building Solutions sees value in sharing across the wider organisation.

How many lift systems do the companies acquired by MEBS manage in their respective countries?
Eliasson: MEBS does not disclose figures regarding the number of lift systems managed by the acquired companies. However, they are important to the organisation’s future strategy and represent a stable foundation for continued development and growth.

How does Motum’s role relate to Mitsubishi Electric Building Solutions’ European expansion and the new European RHQ?
Eliasson: Europe is an attractive market, and in order to create new business opportunities, a European organisation has been established in the form of the Regional Headquarters. This is intended to strengthen Mitsubishi Electric Building Solutions’ focus on the European operations whilst continuing to build on the strong local platforms created through Motum.

This organisational change is designed to enhance coordination and collaboration between the existing companies. Motum is therefore not being replaced by the European RHQ; rather, Motum and Mitsubishi Electric Building Solutions complement each other.

What strategic and organisational changes will the establishment of the European RHQ bring about in terms of expansion in Europe?
Eliasson: The establishment of the European RHQ is intended to strengthen coordination and collaboration between countries and support future growth and expansion activities across Europe. The changes are both organisational and strategic/commercial in nature.

One of the key benefits is the opportunity to share experiences between companies with different areas of expertise and market focus. There are also commercial opportunities that can be leveraged through closer collaboration.

The primary role of the RHQ will be strategic coordination and supporting collaboration and development across the European organisation, while the local companies will continue to manage their respective operations and local market activities. Maintaining local entrepreneurship is important, and operational decisions should continue to be made close to the customer. Therefore, local teams will continue to play a key role in serving their markets.

Is the ambition to create a more unified European organisation over time?
Eliasson: Yes. The establishment of the European RHQ is part of creating a more unified and coordinated European organisation.

A more coordinated structure is expected to strengthen collaboration between countries, increase the sharing of experience and expertise, and create additional commercial opportunities across the organisation.

What strategy is MEBS or the European RHQ pursuing with its acquisitions – to have as comprehensive a presence as possible in the respective country or to achieve market leadership across the whole country?
Eliasson: The strategy is not necessarily to establish a presence in every country. The focus is on markets where the company sees a need for its services and where it can continue building strong operations in the markets where it already has a presence.

Is MEBS or the European RHQ also aiming for acquisitions in other European countries outside Scandinavia?
Eliasson: Yes. The European RHQ continuously evaluates opportunities across Europe, including outside Scandinavia. The organisation already includes markets such as the Netherlands, UK, France and Ireland.

In the European lift market, Mitsubishi plays a rather minor role – with the exception of the Netherlands. What role do the companies acquired by MEBS or the European RHQ play as a sales channel for Mitsubishi lifts?
Eliasson: Mitsubishi is well known for its quality and reliability, and offering these solutions creates additional value for customers. Mitsubishi Electric aims to strengthen Mitsubishi’s position in Europe through strong local organisations, service capabilities and closer customer relationships in the markets where it operates. So the acquired companies are important local platforms for MEBS in their respective markets, support the introduction of Mitsubishi solutions in Europe and will help to increase sales of Mitsubishi lifts.

How many Mitsubishi lifts have been installed by all the acquired companies since Motum entered the market in 2022?
Eliasson: Mitsubishi Electric does not disclose figures regarding the number of Mitsubishi lift installations carried out by the acquired companies.

What share of turnover and profit does MEBS account for in Mitsubishi Elevators’ overall results?
Eliasson: Mitsubishi Electric does not disclose detailed financial information regarding MEBS’ share of overall turnover or profit.

To what extent can the Japanese company Mitsubishi benefit from its experience in Europe in terms of training, where technicians service lifts from multiple brands and are predominantly involved in modernisation work?
Eliasson: Europe has strong expertise in multi-brand service and modernisation, and this experience is valuable within the broader Mitsubishi Electric Building Solutions organisation.

THE QUESTIONS WERE ASKED BY BERND LORENZ.

More informations: motum.se/en

mitsubishielectric.com/en