Otis under fire again for escalator malfunctions

An escalator at Shanghai's Jing'an Temple station traveling upward on Wednesday suddenly reversed, causing passengers to fall. (Photo/Xinhua)

(ECNS) -- Otis China is in the hot seat again for another escalator mishap that caused 12 injuries.

Around 8:00am on Wednesday at Shanghai's Jing'an Temple station, an escalator traveling upward suddenly reversed, causing passengers to fall.

It isn't the first time Otis has gotten public attention in a negative way.

On July 5, 2011, an escalator at Beijing Zoo subway station abruptly changed direction, killing a 13-year-old boy and injuring more than 30 people.

Otis was later fined 300,000 yuan (about $48,000).

The company, founded in New York in 1853, is the world's largest manufacturer of elevators, escalators and moving walkways, with a market share of 27 percent.

Otis made its debut in China when it installed the very first elevator in Shanghai in 1990. Now, Otis (China) Investment Co., Ltd., the holding company, has eight joint ventures, four factories and three research and development centers.

Otis's president Pedro Baranda told the media in 2012 that China had become Otis's biggest market, with 60 percent of the escalators in the country bearing the Otis name.

Tom Vining, president of Otis China, declared several times in public that "one of my jobs is to ensure product safety in China."

After the Wednesday incident, Otis China sent a statement to the Securities Times that read: "We extend our sincerest regards to Chinese passengers. We have formed an emergency group and sent personnel to the place right after the incident. We're also cooperating with relevant government departments to investigate the cause and make sure passengers get the assistance they need."

The statement was attacked by a lawyer who requested his name not be disclosed. "The company is responsible for the incident and should at least say sorry," he said.

As to what exactly caused the malfunction, Otis China said it will try to find out as soon as possible.

The incident has again raised safety concerns about public escalators. 

Qiu Baochang, head lawyer at the China Consumers' Association, said that to ensure safety, efforts are needed from everyone who designs, manufactures, installs and maintains escalators.

Zhang Yuanzhong, a lawyer with the Beijing Wen Tian law firm, said similar incidents over the years have sounded an alarm to the government to enhance supervision.

The incident also appears to have had repercussions for the stock market.

Shanghai STEP Electric closed at 17.05 yuan, down by 0.87 percent on Wednesday. STEP is a high-tech company manufacturing the control and drive system for world elevator companies including Otis, Schindler, Thyssen Krupp and Kone.

Similarly, Canny Elevator closed at 7.17 yuan, off by 2.32 percent. Guangzhou Iron and Steel was slightly down by 0.77 percent. Shanghai Electrical and Mechanical fell by 3.37 percent to 18.95.