Alat, a unit of Saudi sovereign wealth fund PIF, and TK Elevator (TKE), a global leader in vertical transportation and urban mobility, today (August 5) confirmed receipt of all statutory and regulatory approvals required to close their €160 million ($186.3 million) joint venture (JV) and Alat’s 15% equity investment in TKE.
These approvals mark the completion of the intent first announced in February 2025.
The JV will be headquartered in Saudi Arabia and will, over time, locally manufacture elevators, escalators and moving walks for the kingdom and the wider Mena market.
Supported by a local product-development center, it will be the first elevator and escalator manufacturing operation in Saudi Arabia by a global company, fully aligned with PIF’s economic-diversification agenda. The JV will also act as TKE’s sales and service entity in Saudi Arabia.
TKE will contribute advanced technology, manufacturing expertise and world-class safety methodology. The JV will serve as an innovation hub, featuring a product-development center and a training facility that complements TKE’s SEED Campus.
Together, TKE and the JV will create a regional International Technical Services team to provide technical support and third-party maintenance under the TKE Universal Service proposition.
On the key approvals, Amit Midha, CEO of Alat, said: "Today’s announcement marks a decisive step in positioning Saudi Arabia as a global center for advanced manufacturing. Our partnership with TK Elevator will localise cutting-edge mobility technology, create high-value skilled jobs, and cultivate world-class expertise within Saudi talent, further strengthening Saudi Arabia’s emerging advanced manufacturing cluster."
"Together, we will power the Kingdom's giga-projects and export sustainable innovation throughout the region. This partnership will fulfill Vision 2030 and advance Alat's mandate to build a world-class manufacturing hub for advanced technologies. Paving the way for future collaborations that support this ambition," he stated.
Uday Yadav, CEO of TK Elevator, said: "Finalising the joint venture and welcoming Alat as a long-term shareholder positions TK Elevator to meet surging demand for innovative mobility solutions during Saudi Arabia’s development super-cycle and beyond."
"We are excited to deepen this multi-dimensional partnership and shape the smart cities of the future together," he stated.
This TK Elevator transaction, he said, was the third strategic deal Alat has completed, following the finalisation of its SoftBank and Lenovo partnerships, underscoring the company’s mandate to become a global hub for advanced, sustainable manufacturing.
"Through such partnerships, Alat is accelerating localisation, technology transfer and export-led growth from Saudi Arabia to the world," he added.-TradeArabia News Service
