Daeryun Ellis Launches Domestic Escalator 'Didimpan' Tread Plate

Lee Girang CEO "Flood of inquiries before market launch, optimistic market outlook"
"Price is what buyers say"... End low-cost competition from Chinese products
Patents for stepping plates and friction reduction plates, superior safety and quality comparison

Lee Girang, CEO of Daeryun Ellis, is comparing the Chinese-made escalator 'Step' with the domestically produced step plate (gray product on the right) developed by Daeryun Ellis. The yellow boomerang-shaped product that CEO Lee is holding is the 'friction reduction plate.'
[Photo by Kim Jonghwa]

[Asia Economy Reporter Kim Jong-hwa] The development and launch of domestically produced escalator parts are drawing attention to the changing dynamics in the South Korean escalator market, which has been engaged in low-cost competition with Chinese products.

Daeryun Ellis, an escalator manufacturing and installation company, obtained a parts safety certification for its newly developed 'Step' from the Korea Elevator Safety Agency in June and is preparing for commercial release.

CEO Lee Ki-rang stated, "Even though we have not yet launched the product, public institutions that have struggled with frequent breakdowns of low-cost Chinese products and escalator maintenance are increasingly inquiring," adding, "While reducing production costs remains a challenge, the market outlook is very optimistic."

The domestic Step is currently under review as an 'Innovative Product' by the Public Procurement Service, and upon passing the designation process, it plans to participate in pilot purchase projects with organizations such as Seoul Metro. Daeryun Ellis's primary goal is to be recognized for its technology and quality in the pilot purchase projects, achieve the status of 'Excellent Procurement Product,' and secure steady sales through direct contracts with public institutions.

The Reality of "Name Your Price"... China Supplies 90% of the World's Escalator Parts

Escalators are imported as finished products from China, and in the case of Steps, 2 to 3 extra units are requested as spares during the initial order. It is an industry rule to stock parts in advance for quick repairs due to frequent failures of Chinese parts. Parts replacement is due within 1 to 2 years, and ordering parts only at that time can result in paying exorbitant prices. The bid price is for the finished product, and individual part prices are not separately set; ordering individual parts later for maintenance can lead to significant losses.

According to the industry, two years ago, a public institution ordered Steps separately for escalator maintenance, and the price per Step reached 450,000 KRW. Last year, another public institution entrusted maintenance to a large corporation, and the price per Step was set at 1,230,000 KRW. This reflects the Chinese manufacturers' "name your price" attitude.

The safety brush (skirt deflector), which was replaced not long ago, has been damaged by a passenger. When the safety brush is damaged, shoelaces or skirt hems can be more easily caught by the operating escalator, so caution is required.
[Photo by Daeryun Ellis]

CEO Lee analyzed, "There are no domestic parts manufacturers, and China supplies more than 90% of escalator parts worldwide, showing a brazen attitude," adding, "This phenomenon occurs because there is no competition."

The domestic Step was developed with a focus on 'safety.' The Chinese Step weighs 10.5 kg, which is light. Daeryun Ellis's Step weighs 15.5 kg, 5 kg heavier than the Chinese one. Heavier Steps are better as they provide stability and are more resistant to impact. Lighter Steps tend to shake due to vibrations, increasing accident risks and noise.

For escalators to operate, there must be a gap between the skirt guard (side wall) and the escalator. This gap causes vibration and noise due to friction with the side wall. If the parts wear down and the gap widens, shoes or foreign objects can be sucked in, causing accidents.

Patents for Step and Friction Reduction Plate, Superior Safety and Quality Comparison

Daeryun Ellis developed a 'friction reduction plate' made of Teflon (PTFE) material to minimize this gap. The friction reduction plate, which is stronger and more elastic than plastic, is attached to both sides of the Step, eliminating noise from friction with the wall and offering excellent durability for semi-permanent use. Chinese Steps use a 'safety brush (skirt deflector)' to fill the gap between the wall and the Step. The safety brush must be replaced before it wears out to prevent accidents, and the replacement cost is considerable.

The gap between the escalator and the skirt guard (side wall) causes vibration and noise. Using Chinese-made steps (left photo) results in a wide gap, while the newly developed domestically produced steps (right photo) have a 'friction reduction plate' attached, leaving almost no gap.
[Photo by Daeryun Ellis]

For a 6-meter high (10-meter travel length) escalator in busy transfer subway stations, the safety brush is replaced once a year, and usually once every 2 to 3 years, with an average replacement cost of 1.4 million KRW per unit. Older stations like Line 1 have 10 escalators, and recently established stations have more than 20 escalators, so each station budgets at least 14 million to 28 million KRW separately for replacement costs.

Daeryun Ellis's Step is heavier and includes the friction reduction plate, so its production cost is relatively high. The domestic Step is priced at 300,000 KRW per unit, which is much cheaper than the Chinese Step, whose price has become "name your price," but the downside is that it is an individual part, not a finished product. Supplying individual parts to domestic maintenance sites is not an issue, but since finished products are imported, participation as a partner of Chinese manufacturers is also necessary. Ultimately, price competitiveness will determine success.

CEO Lee explained, "The key is how much we can reduce production costs," adding, "We are researching various methods along with mass production." Lee, who previously worked at Hyundai Elevator, established Daeryun Ellis in 2010. The company recorded sales of 11 billion KRW in 2020, ten years after its founding, but sales dropped to 9.7 billion KRW last year due to the impact of COVID-19. This year, without starting Step sales, sales are expected to reach 11 billion KRW, and next year, when Step sales begin in earnest, sales are projected to exceed 20 billion KRW. The goal is to surpass 300 billion KRW in sales within five years.

CEO Lee has been steadily preparing for the future. The domestic Step and friction reduction plate are currently under international patent application, and design and technical personnel have been trained for several years. In June, a second factory was completed in Geochang-gun, Gyeongnam Province, where an elevator university is located. This was a preemptive measure to overcome the common problems of small and medium-sized enterprises lacking talent and technology. Lee said, "Achieving 300 billion KRW in sales is a promise with our employees, so we will definitely achieve it," and added, "If a small and medium-sized enterprise is developing, talented people are expected to be attracted."

This content was produced with the assistance of AI translation services.