United Technologies' Otis Wins Prime Sri Lankan Contract

May 18, 2016, 11:08:00 AM EDT By Zacks Equity Research, Zacks.com

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Otis, a unit of United Technologies Corp. UTX , was recently awarded a contract to install its high-speed elevators at the esteemed Altair project in Colombo, Sri Lanka. On completion, this will be the tallest residential building in Sri Lanka, having the country's fastest elevators. Elevators Private Limited, a joint venture (JV) entity between Otis and Aitken Spence, has taken up the Altair project.

Per the plan, the project will likely consist of 68 floors, including two towers with one leaning against the other. Otis is expected to install 19 super fast elevators, which will travel at a speed of 5 meters per second. Out of these 19 elevators, 7 will be exported to Sri Lanka from Otis India's Bengaluru factory.

Altair's innovative structure makes installation of elevators challenging, But Otis' technical know-how and credentials make it the right choice for the project. Otis has a history of providing best-in-class escalators and elevators across the globe.

Earlier this year, Otis China announced that it will be building a new elevator test tower in Shanghai. This test center will be a part of its new global research and development (R&D) facility. The test center is expected to be approximately 270 meters in height and is likely to be the tallest test tower in the world upon completion. The much anticipated R&D facility is slated to be completed and functioning by the end of 2018.

With constant focus on innovation and expansion, Otis is likely to procure more such prime contracts in the near future. Since it is already one of the most trusted elevator and escalator companies in the world, its sustained R&D focus will augment top-line growth.

Otis is a leading provider of elevator and escalator services. The company offers its services to over 200 countries and territories. Alongside, it maintains more that 1.9 million elevators and escalators worldwide.

United Technologies, the parent company of Otis, currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include CLARCOR Inc. CLC , Honeywell International Inc. HON and Koninklijke KPN N.V. KKPNF . All three stocks carry a Zacks Rank #2 (Buy).

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