KONE China Expands Investment in the Greater Bay Area to Advance the Modernization of Hong Kong’s Aging Buildings
(August 29, 2025, Hong Kong) — KONE China today signed a strategic cooperation agreement with the Authority of Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone of Shenzhen (Qianhai Authority), marking the launch of a major investment initiative in the Greater Bay Area. The company will establish its China Southern Headquarters, a dedicated R&D center, as well as a smart logistics and assembly center, supporting the region’s high-quality urban development. This initiative also marks KONE’s active expansion in the Hong Kong market. Through elevator modernization, digital maintenance services, and talent development, KONE aims to make a tangible contribution to Hong Kong’s social and economic progress.
Speaking at the ceremony, Philippe Delorme, President and CEO of KONE Corporation, emphasized that, “With nearly 30 years of presence in China, the new China Southern Headquarters in Shenzhen is a strong testament to our ‘In China, For China’ commitment. We aim to contribute to the GBA’s vision of becoming a world-class city cluster while advancing urban digitalization and sustainable growth.”
Joe Bao, Executive Vice President of KONE Greater China, highlighted the unique advantages of the GBA. “The Greater Bay Area is among the most dynamic and innovative regions in China. Qianhai, as a pivotal platform for Shenzhen–Hong Kong collaboration, offers a robust industrial ecosystem, strategic location, excellent connectivity, and strong policy support for cross-border cooperation. Through this partnership, we look forward to leveraging these advantages to optimize resource allocation, accelerate industrial transformation, and support urban renewal across the GBA cities,” he noted.
Driving Elevator Renewal in Hong Kong to Address Aging Building Challenges
Hong Kong is currently facing a significant aging building issue. According to statistics from the Hong Kong Development Bureau, the number of buildings over 50 years old is increasing at an average rate of 510 buildings per year. By 2043, it is projected that there will be approximately 24,300 buildings aged 50 years or older across the city. KONE will develop a smart logistics and assembly center, significantly enhancing supply chain efficiency across the GBA cities. For example, in Hong Kong, the logistics time for modernization solutions will be reduced by approximately 20%. The establishment of KONE’s new R&D Center is aimed at developing innovative solutions specifically for the Hong Kong market, accelerating the modernization of aging buildings and improving responsiveness to local needs.
Digital Maintenance Services Driving Industry Upgrades
Traditional industries such as elevator maintenance in Hong Kong have been relatively slow in adopting digital solutions, with operations still largely reliant on conventional methods. In response, KONE has promoted Predictive Maintenance Services powered by artificial intelligence and big data analytics. These technologies have achieved significant improvements: a 55% reduction in elevator faults, a 40% reduction in elevator entrapment, and a 55% reduction in mean time to repair. KONE continues to push boundaries in both products and services, positioning itself as a pioneer in intelligent manufacturing.
Foster Shenzhen-Hong Kong Talent Integration
KONE is also committed to promoting professional talent exchange and training between Shenzhen and Hong Kong. By encouraging Hong Kong-based technical professionals to participate in development and advanced training at the new R&D Center, KONE aims to attract top-tier talent and drive industry-wide upgrades. This initiative will not only enhance the technical capabilities of the R&D Center but also stimulate vitality to both the Hong Kong and Shenzhen markets.
Eric Xie, Senior Vice President of KONE Bay Region and Managing Director of KONE Hong Kong, stated: “KONE’s strategic focus on elevator modernization and digitalization is designed to accelerate urban renewal and smart infrastructure development across the Greater Bay Area. Our leading technologies, forward-looking strategies, and practical solutions will deliver significant value to the Hong Kong market and its customers.
Moreover, Hong Kong’s elevator industry boasts a mature service system and operational standards, which offer valuable insights for the mainland market. These practices support KONE in continuously streamlining its business processes and enhancing overall operational efficiency. As integration between Shenzhen and Hong Kong deepens, the synergy across institutional, market, and technological dimensions is becoming increasingly evident, bringing new inspiration and opportunities for KONE’s business expansion and innovation deployment.
Dual-Headquarters to Enhance Operational Efficiency Across the GBA and Hong Kong
As regional integration progresses, KONE is strengthening its footprint in the Greater Bay Area. The new Southern Headquarters in Qianhai, Shenzhen, will play a pivotal role in driving high-quality development and deeper regional collaboration. Scheduled to begin operations in early 2026, establishing a “dual-headquarters” model in China. This new hub will focus on regional market development, customer service, and resource integration. Meanwhile, Construction of the smart logistics center officially began in July and is expected to be completed and operational by October 2025. This strategic layout will not only deepen KONE’s involvement in regional economic development but also bring new opportunities and benefits to Hong Kong.
Milestone Development in Mainland China and Hong Kong Markets
This year marks the 45th anniversary of KONE's presence in the Hong Kong market, and in 2026, KONE will celebrate its 30th anniversary in Mainland China. This initiative in the Greater Bay Area represents not only a major milestone in KONE’s development in China but also reaffirms its long-term commitment to the local market.
About KONE
At KONE, our purpose is to shape the future of cities. As a global leader in the elevator and escalator industry, we move two billion people every day, making their journeys safe, convenient, and reliable with smart and sustainable People Flow®. In 2024, KONE had annual sales of EUR 11 billion, and at the end of the year over 60,000 employees in close to 70 countries. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.
KONE China signed a strategic cooperation agreement with the Authority of Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone of Shenzhen (Qianhai Authority)
Group photo at the signing ceremony of KONE China's Greater Bay Area strategic cooperation
Opening Remark of Philippe Delorme, President and CEO of KONE Corporation
Opening Remark of Joe Bao, Executive Vice President of KONE Greater China