TK Elevator Overcomes Brazil Floods to Achieve Growth in Latin America
TK Elevator, formerly ThyssenKrupp Elevator, demonstrated resilience in the face of natural disasters. The company’s Latin American division reported a 10% revenue increase for the fiscal year ending September 2024, despite severe flooding in southern Brazil.
The Latin American branch generated R$2.5 billion ($446 million) in revenue, contributing to the company’s global earnings of €9 billion (R$55.3 billion / $9.9 billion). This growth was driven by a new elevator model and increased service sector sales.
In May 2024, floods isolated TK Elevator‘s only Latin American manufacturing plant in Guaíba for three weeks. The company’s administrative building in Porto Alegre also suffered damage. Employees worked remotely for three months due to the flooding.
Despite these setbacks, TK Elevator met its production targets by September. The launch of the new EOX elevator model in July 2023 played a crucial role in the company’s success.
This innovative product offers energy savings and digital features that appeal to modern consumers. TK Elevator is investing R$20 million ($3.6 million) in new machinery for the EOX production line, expected to be fully operational by mid-2025.
The service sector has become increasingly important, now accounting for half of the company’s revenue. Looking ahead, TK Elevator expects stable market conditions in fiscal year 2025.
TK Elevator’s Strategic Investments
The company is investing R$30 million ($5.4 million) in a new building at its Guaíba plant to house a global engineering team focused on product development.
TK Elevator’s history in Brazil dates back to 1999 when it acquired Sur Elevadores. In 2020, private equity groups Advent and Cinven purchased the elevator division from
ThyssenKrupp for €17.2 billion (R$105.8 billion / $18.9 billion). The company adopted its current name in 2021. The company’s success in overcoming natural disasters and market challenges demonstrates its adaptability.
TK Elevator’s focus on innovation, service expansion, and strategic investments positions it well for continued growth in Latin America.
As climate-related events become more common, the company’s resilience may prove to be a valuable asset in the competitive elevator market.
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