Alat, TKE to set up elevator manufacture JV in Saudi Arabia
Alat, a unit of Saudi wealth fund PIF, today (February 24) entered into an agreement with TK Elevator (TKE), a global leader in vertical transportation and urban mobility, for setting up a new joint venture for manufacture of end-to-end elevator and escalator solutions in the kingdom.
In addition, Alat will invest to become a significant long-term shareholder in TK Elevator, capitalizing on the company's strong growth potential.
The key venture, being established at an investment of €160 million ($166 million), will bring mobility products, solutions and manufacturing to the kingdom, supported by a local product development centre, said Alat in a statement.
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.
With this move, Alat will also become a 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 of 2025, subject to customary statutory and regulatory approvals, it added.
This partnership will deliver innovative end-to-end elevator and escalator solutions, manufactured in Saudi Arabia, aligning with 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 the Saudi market 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 utilise the Mena network to enhance business in the region, said the statement.
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.
"Alat's partnership with TK Elevator is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics," remarked its CEO Amit Midha.
"This aligns with 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," he said.
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, which provides comprehensive, globally standardized elevator training programs – ranging from technical skills to management, he added.
Uday Yadav, the CEO of TK Elevator, said: "We are privileged to form a game-changing joint venture with Alat to support the kingdom's vision and power TK Elevator's future organic growth. This partnership marks another important milestone in our transformation journey and represents a new era that underscores TK Elevator's active participation in the upcoming development supercycle in the Kingdom of Saudi Arabia, 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 on our company overall and look forward to benefiting from their engagement," he stated.
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