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China woes send elevator shares to the ground floor

Kone, Otis and Schindler have all been hit by declining demand
China woes send elevator shares to the ground floorPublished on October 1, 2024

The lift business, as the old joke goes, can be very up and down.

Take Finland’s Kone (FI:KNEBV). It enjoyed a compound annual sales and operating profit growth rate of almost 8 per cent in the decade before Covid-19 hit. Its launch of a carbon fibre product, UltraRope, in 2013, told its own story about the strength of the market. It was aimed at developers of skyscrapers, which has been a booming market.

Last year, a record 180 towers with a height of more than 200 metres were completed â€“ the 10th year in succession that more than 100 buildings of this height were completed, according to the Council on Tall Buildings and Urban Habitat.

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