Alat and TK Elevator are forming a €160 million joint venture to manufacture and provide elevator and escalator solutions in Saudi Arabia and the MENA region, powering future organic growth. In addition, Alat will invest to become a significant long-term shareholder in TK Elevator, capitalizing on the company’s strong growth potential.
Riyadh, February 24, 2025 – Alat, a PIF company, and TK Elevator (TKE), a global leader in vertical transportation and urban mobility with global sales exceeding €9 billion, today announced the formation of a €160 million joint venture (JV). 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 of 2025, 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 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 utilize the MENA 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.
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. 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 Universal Service value proposition.
“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. 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,” said Amit Midha, CEO of Alat.
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.
For more information, please visit alat.com.
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About Alat
Alat is a company focused on transforming global industries (electronics and industrials) and creating a world class manufacturing hub in the Kingdom of Saudi Arabia powered by clean energy to build a better tomorrow. Alat will deliver sustainable manufacturing to help global companies reduce their emissions and move towards 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 Kingdom of Saudi Arabia, 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. For more information visit www.alat.com
ABOUT TK ELEVATOR
TK Elevator (TKE) is a global leader in vertical transportation and urban mobility. We provide engineering that keeps the world moving, from design to installation and maintenance on any brand of elevators, escalators, walkways, lifts, passenger boarding bridges, stairlifts, platform lifts and home elevators – any place and any time. With our digital solutions like AGILE and the IoT platform, MAX, there are no longer any limits to urban mobility. TK Elevator 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 (ADIA), GIC, RAG-Stiftung and thyssenkrupp AG as significant co-investors. The company achieved sales of €9.3 billion and adjusted EBITDA of €1.5 billion in fiscal year 2023/2024. With around 50,000 employees, 25,000 service technicians and over 1,000 support centers globally, we are moved by what moves people. TKE – Move Beyond.