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Kinetek Strengthens Global Elevator Brand through Joint Venture with Chinese Controls Technology Leader, Wuxi Zhongxiu

April 14, 2008

Kinetek, a global leader in the design and manufacture of motors, controls, and motion control systems for elevator & escalator markets and other industrial and commercial markets has announced it has finalized a joint venture agreement with China-based Wuxi Zhongxiu, a leading Chinese elevator controls manufacturer. According to terms of the agreement, the newly formed JV company, "ZXK" (Zhongxiu Kinetek) will design and manufacture elevator microprocessor boards and complete elevator controllers for domestic China and International markets.

The ZXK joint venture will enhance the already prominent role Kinetek companies play in the global elevator and escalator marketplace, said Randy Bays, Kinetek's president and chief operating officer. "ZXK is a terrific company, and I'm very excited about what they bring to our elevator & escalator business. We now have two of the leading controls companies in the world, ZXK and Motion Control Engineering (MCE), and two of the leading elevator motor and machine manufacturers, Kinetek De Sheng (KDS) and Imperial Electric. This is a very solid group."

Expanding from its already strong North American and China bases, Bays sees significant potential for the global Kinetek brand. "In just the past several months, we have introduced Kinetek and our elevator companies in advertising in Europe and China, and at important international shows in Germany and India. The response we have received from the market, from both OEM and independent elevator companies, has been very gratifying. And with the sales and support organization and partnerships we are putting together globally, including efforts in the UK, India and Latin America, we are very excited about the future."

Mr. Qingkang Xue, ZXK general manager, sees a bright future for the ZXK joint venture. "The international elevator industry will see a new ZXK, a technology driven company that will innovate at a rapid pace to bring new products to the market." The future is already taking shape in Wuxi, according to Xue. "We have begun construction on a new state-of-the-art, 20,000 square meter factory that will feature an 88 meter test tower capable of 6 meter per second testing. This new facility will help ZXK become a world class designer and manufacturer of elevator and escalator control systems."

Ashur Kanon, MCE president, noted that ZXK provides a complementary product solution to that offered by non-proprietary controls pioneer, MCE. "ZXK produces high quality, high performance boards and controls for EN81 based international applications. This is a nice extension of our North American manufactured controls, which enhances Kinetek's total product offering to the global market." Kanon added that the ZXK joint venture brings benefits to MCE. "With access to ZXK's technology and distribution channels, we will have the opportunity to market MCE technology and products into the Asia market."

The joint venture agreement does not include sales & distribution activity of controls and boards in China, according to Norman Bates, Kinetek senior vp, business development. "Zhongxiu will remain as an independent service business in China. They have developed a very strong brand name and significant distribution channels in the China market."

Kinetek's elevator group serves large independent elevator companies and global OEM companies, including ThyssenKrupp, Schindler, Otis, KONE, Fujitec and Mitsubishi. Kinetek companies will have a strong presence at the upcoming World Elevator Expo in Langfang, China from April 22 – 25. The ZXK booth (A243) will feature ZXK control solutions, and MCE's iControl, Motion 3000ES Escalator Control, and Destination Based Dispatching. The KDS booth (C273) will feature elevator motors and machines from KDS and Imperial Electric.

Kinetek provides its global customer base with customized solutions for their motor and motion control system needs. Kinetek's comprehensive range of product lines includes AC, DC and brushless DC electric motors (sub-fractional, fractional and integral), electronic controls, motion control products, gearboxes, gears, transaxles, human machine interface products (membrane switch assemblies, graphic overlays) and related systems solutions.

About Kinetek
Kinetek companies operate 26 facilities and employ more than 3000 people in North America, Europe and Asia and hold market leading positions in the elevator/escalator, commercial floor care, material handling, golf and utility vehicle, commercial food equipment, aerial work platform and medical market segments. Kinetek companies include Imperial Electric, Scott DC Power Products, Euclid Universal, Advanced Motors and Drives, Kinetek De Sheng (KDS), FIR Group, Kinetek Controls, Valmark Industries, Merkle-Korff Industries, Motion Control Engineering (MCE) and Zhongxiu Kinetek (ZXK). Learn more about Kinetek by visiting