KONE Corporation has acquired a further 10% stake in its Saudi Arabian joint venture company KONE Areeco Ltd. ("KONE Areeco") from its joint venture partner United Industrial & Trading Company Ltd. After the transaction, KONE holds 50% of the shares in KONE Areeco. KONE has agreed with its joint venture partner that KONE gains formal control in KONE Areeco, and beginning on December 31, 2013 KONE Areeco will be consolidated as a subsidiary in KONE's financial reporting.
Through this transaction KONE further strengthens its position in the important Saudi Arabian elevator and escalator market. KONE Areeco has a leading position and employs more than 700 people. KONE has held a 40% stake in KONE Areeco since 2007.
KONE Areeco has several flagship projects in Saudi Arabia, such as the successfully completed Makkah Royal Clock Tower Hotel in Mecca, as well as ongoing projects such as the King Abdullah Financial District in Riyadh, and the King Abdulaziz International Airport and the Headquarters Business Park in Jeddah.