United Technologies combines elevator, climate businesses
(Reuters) - Industrial conglomerate United Technologies Corp UTX.N said on Monday it would combine its elevator and climate segments as it seeks to capitalize on urbanization trends in China and other emerging markets.
Geraud Darnis, a 30-year veteran of United Technologies, will lead the new UTC Building & Industrial Systems business, which combines Otis Elevator with UTC Climate, Controls & Security, the company said.
The new building and industrials system business has 120,000 employees and $29 billion in annual sales. Its products include Otis elevators and escalators; Carrier heating, air-conditioning and refrigeration systems; and fire and security solutions from brands such as Kidde and Chubb.
The new structure "better positions UTC to capture growth opportunities as the powerful urbanization megatrend in emerging markets continues," United Technologies Chief Executive Louis Chenevert said in a statement.
Orders in China for Otis elevators rose 39 percent in the second quarter, United Technologies reported in July, helped by expansion of cities in the country's central and western regions.
Darnis had been named president of the climate, control and security business in September 2011.
The company had no immediate comment when asked whether there would any job cuts due to combining the businesses.
(Reporting by Lewis Krauskopf; Editing by Grant McCool)
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