BEIJING, July 28 -- Hitachi Elevator (China) Co Ltd, the second-largest elevator manufacturer in China, plans to rise to the top position within four years by increasing output and adding to innovation, a company executive said.

    "Our target by 2010 is that Hitachi will produce and sell more than 35,000 units, the highest share in the market, with a share that will range from 18 to 20 percent," said Pan Shengshen, vice-chairman and president of Hitachi.

    Hitachi's two manufacturing facilities in Guangzhou and Tianjin produced 20,000 units in 2006, helping the company reach sales revenue of 5 billion yuan. Its market share was 14.4 percent, second only to Shanghai Mitsubishi Elevator.

    To help meet its growth goals, the company is building a third elevator factory in Shanghai. The $60 million facility, due for completion early next year, will have an annual capacity to produce 15,000 elevators.

    The company announced on July 27 that its Guangzhou branch will become its China headquarters to assist in leveraging resources in research and development (R&D), sales, marketing and services from its three manufacturing bases in Guangzhou, Tianjin and Shanghai.

    Soaring numbers of new apartments and office buildings are helping fuel demand.

    "The market has been growing at an annual rate of 20 percent, with elevator sales expected to reach 170,000 units in 2007," said Ren Xiaotian, director of China Elevator Association.

    There are close to 400 elevator manufacturers across the nation, but "about 80 percent of the market share is held by a few foreign enterprises", said Ren.

    Mitsubishi, Hitachi and Otis are the top three brands.

    China ranks as one of Hitachi's top markets in Asia, with its target customers middle to high-end buildings, said Pan.

    He predicted that Hitachi China will produce 24,000 elevators this year for a 15.5 percent market share.

    Hitachi says it will also make more effort to produce energy-saving elevators.

    "Annually, we invest five percent of sales to strengthen R&D capability, and the ratio will be increasing," Pan said.