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Overview of China Cold Chain Sector

Global Refrigerator & Freezer Market

Showcase

Commercial Refrigeration Compressor

Contents July 2011

Refrigeration

7 Overview of China Cold Chain Sector

10 Production and Sales Realized Growth;

Enterprises Kept High Operation

——Review of China Refrigerator Sector’s

Development in 2010

14 Sales Growth Created a New high; Production Capacity

Reached a New Level

——Review of China Freezer Sector's Development

18 Global Refrigerator & Freezer Market

22 Showcase

26 Hisense

27 Haier

28 Midea 7 Overview of China Cold Chain Sector 30 XINGXING P

33 SANYO

36 Nakano

37 FuKushima

38 Shandong XIAOYA

Upstream

41 Review of China Refrigerator Compressor Index of Advertisements Sector in 2010

47 Commercial Refrigeration Compressor Inserted Front: Bitzer 52 VIP Application is to become a New Trend in Home Inside Back Cover: Hisense Appliance Insulation and Refrigeration Field Back Cover: Embraco 55 Embraco

57 Dongbei P1: GMCC

59 Jiaxipera P3: Midea P5: XINGXING 60 Bitzer

2 CEAM - July - 2011

CEAM

Chief Editor: Jie Yang

Associate Editor: Lizhe Zhang

Editor/ Reporter(AC):

Xiaofang Suo Xiaolan Fan Zheng Sun Yinghan Wang

Editor/ Reporter(HVAC):

Yanfang Yu Run Yang

Editor/ Reporter(Upstream):

Jinhua Zhang Yuxin Pang

Editor/ Reporter(Refrigeration):

Ping Yang Juan Wang Jingjing Li Ying Liu

Editor/ Reporter(Household Appliance):

Xi Wang Ling Zhang Qin Liu

Art Editor: Yang Zhou

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PART1: Refrigeration

Overview of China Cold Chain Sector

Production and Sales Realized Growth; Enterprises Kept High Operation ——Review of China Refrigerator Sector’s Development in 2010

Sales Growth Created a New high; Production Capacity Reached a New Level ——Review of China Freezer Sector’s Development

Global Refrigerator & Freezer Marker

Showcase

Main Manufacturers Refrigeration

Overview of China Cold Chain Sector

Cold chain refers that in order special equipments for food refrigeration. increased from 872 set in 1999 to more to maintain the quality of fresh and In the following there is a brief introduction than 4500 sets in 2004, and by 2010 the frozen food, they are put into logistics on the market situation of several main annual output had reached 8700 sets. network with low temperature and spe­ cold chain equipments(Chart1): China food quick-freezing equipment cialized equipments from production sector has a history of about 20 years to consumption process. With the dev­ Production and processing: quick-fre­ now. Although it has a degree of deve­ elopment of refrigeration technology and e­zing equipment and freezer dryer lopment, compared with foreign advanc­ the rising requirement of the residents on Quick-freezing equipment develops ed level, there is a gap between them. food safety, cold chain logistics has been with the requirement change of cold chain China quick-freezing equipment sector widely used in developed countries. This terminal consumers on food; it has a direct lags behind in mechanization, automation sector in China starts late and has low influence on the quality of frozen food and set level; the equipments have high level of development; while in recent such as quick-freezing rice and noodles energy consumption; there are few res­ years driven by national policies, cold as well as meat. In recent years the sales earch­ institutions and not many man­ u­ f­­­ chain logistics improved rapidly. In July and revenue of China domestic frozen acturing enterprises with large scale. The 2010, The National Development and food sector all kept growth, which also main domestic enterprises incl­u­ de:­ Nant­ Reform Commission issued “Agricultural stimulated the demand for quick-freezing ong Freezer Equipment Company,­ Yantai Products Cold Chain Logistics Plan”, equipments. Currently the quick-freezing Moon Co., Ltd, China A­erospace­­ Sheny­ which put forward that by 2015 the equipments manufactured in China can be ang Xinyang Quick-Freezing Equipment cold chain distribution rates of fruits divided into four categories: blast quick Manufacture Co., Ltd, Shenyang Bingtian and vegetables, meat as well as aquatic freezers, contact quick freezers, cryogenic Refrigeration Equipment Co., Ltd and products in China will rise to more than quick freezers and liquid immersion quick Tianjin Tianma Refrigeration Equipment 20%, 30% and 36% respectively; the freezers. According to statistics, the sales Engineering Co., Ltd, etc. refrigeration transportation rates of the of quick-freezing equipments in China Freezer dryer is for cooling and drying, three kinds of products will increase to about 30%, 50% and 65% respectively and their deteriorating rates during transportation process will drop to less than 15%, 8% and 10% respectively. freezer dryer This policy will greatly promote the development of China’s cold chain logistics sector. A complete cold chain system in­c­­ ludes various low-temperature refri­g­e­ r­­­ation equipments, among which con­t­ rolled atmosphere storage, cold storage, showcase, display cabinet, freezer and refrigerator, etc, are food storage equipments; refrigerator truck, insulated truck, refrigeration ship, refrigerated co­ n­tainer and cooler box, etc, are food refrigeration transportation equipments; instant freezer, freezer dryer, pre-cooling equipment and fermentation equipment, etc, are food processing equipments; ice machine and beverage machine, etc, are

CEAM - July - 2011 7 Refrigeration including refrigeration system, vacuum Transportation: refrigerator truck rapidly, especially the widely used small- system, heating system and electric meter China’s refrigerator truck sector is easily scale cold storage, which stimulated control system. It can be divided into two affected by policies. If the government puts the development of cold chain sector. categories according the application: the strict check on refrigeration transportation Besides small-scale cold storage, China first is post-processing type freezer dryer; or implements stimulation policies, it will also increased investment on building the second is production type freezer offer this sector a great deal of opportunities. large public cold storage, keeping the dryer. China freezer dryer manufacturing According to the statistics of ChinaIOL, growth of the volume of cold storage sector started from 1950s; at present the in recent years there has been 6000 new at about 15% annually. The regional market is relatively mature but the growth refrigerator trucks manufactured in China; characteristics of economic cold storage is slow. In 2010 the sales of freezer dryer driven by policies, this number is as high as are obvious, mainly concentrating in the reached 213,000 sets, totaling 2.529 9000 in 2010. eastern coastal area, the Bohai Economic billion Yuan, up 6.2% and 11.6% year on There are more than 100 refrigerator Zone and Guangdong and Guangxi year respectively. truck enterprises, among which only in South China. The main distributed There are many enterprises that 20 ones are large scale ones. Most of provinces include Shandong, Zhejiang, manufacture freezer dryer; according to the market shares are taken by CIMC Liaoning, Jiangsu, Beijing, Shanghai, incomplete statistics, there are about 3000 Vehicles, Henan Bingxiong, Zhengzhou Tianjin, Guangdong and Guangxi. The or so in China and the brand concentration Hongyu, Henan Xinfei and Zhenjiang cold storage can be divided into aquatic rate is low. The top 10 ones include Speed, etc. Due to limited market capacity, product cold storage, meat cold storage, Kcstech, Jiamei Cleaning Equipment, the competition is quite fierce, and the fruits and vegetables cold storage as well Fuyang Ride, Jiabo Purity, Dongguan profit is lower and lower. The merger and as others by application. The volume Hjinlong, HANFILTER, Shida Cleaning reorganization among refrigerator truck of meat cold storage is the largest, Equipment, Shanli Purify Equipment, enterprises are inevitable; therefore the accounting for more than half of the total kelin Ai’er and Zhendong Machinery. market share will gradually fall in the volume of cold storage; aquatic product The enterprises producing medical freezer hands of leading enterprises. cold storage ranks second, accounting for dryer are mainly Shanghai Tofflon and 1/4 of the total. Fruits and vegetables cold IMA Edwards. Freezer dryer is applied Storage: cold storage storage is relatively scarce but also highly in commercial and industrial areas, with The cold storage in China can demanded. limited market scale. Driven by good be divided into cold storage, freezer The cold storage state-owned ent­ economic environment and national storage, low-temperature cold storage erprises with high popularity in China policies, this sector is developing rapidly and controlled atmosphere storage. In are Dalian Bingshan and Yantai Moon; and has bright prospects. recent years this sector has developed the two enterprises take 60% to 70%

Chart 1 Cold chain system structure

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of the total market share and their 2008, the development shrank slightly. power, construction, retail, chemistry, undertaking capacity and technical level China's refrigerator products are mainly medicine, food, aquatic product, mine are unreachable, therefore they dominate supplied to domestic market, accounting and entertainment sectors. the high-end cold storage market. Foreign for 70% of the market share, thanks to the The domestic market scale of com­ enterprises such as Ingersoll Rand are stimulation of relative national polices on mercial ice machine is not large; with also optimistic about the cold storage domestic refrigerator market. the development of relative sectors such sector in China; their investment in this There are many refrigerator enterprises as tourism and catering, the market market is growing year on year. There in China, and the domestic ones take absolute demand is steadily increasing. At present are many medium-sized private cold advantages in the market. Among foreign- the enterprises with large output inc­ storage enterprises with annual sales invested enterprises, Siemens is more lude Fujian Snowman, Ningbo Grant, amount of 300 million Yuan in Shanghai, competitive. In the recent two years the top Shenzhen Brother, Japanese Hoshizaki, Changzhou of Jiangsu, Dalian, Shandong five enterprises according to their sales are Scotsman and Manitowoc; they takes large and Dongguan of Guangdong, etc. Haier, Midea, Hisense-Kelon and Frestech. shares in supermarket chains, retail, food The enterprise with best performance in processing, hotel groups, civil aviation as Sales: showcase and freezer export market is Homa who takes lots of well international catering groups. Due to The main client base of showcase is market share in export volume. large ice volume, industrial ice machine supermarket chain, so the development of needs relative matching refrigeration showcase sector depends on the expansion Special Application: ice machine system; because that the application of supermarket chain. The overall scale of Ice machine sector is relatively new requirements are quite different, it always this sector is not large; the development is in China; with small scale, it is mainly needs circulating water, design of electric- slow and the market structure is relatively used in commercial field. According controlling system, prefabrication and stable. Showcase technology develops fast to the application ice machine can be field assembly, therefore it requires in foreign countries, therefore European, divided into household ice machine, strong professional technical capabilities. American and Japanese enterprises in commercial ice machine and industrial Currently there are just a few industrial ice Chinese market take most of the market ice machine. Currently commercial ice machine enterprises in China, including share. The main European and American machine takes nearly 90% of the market Fujian Snowman, Ningbo Grant and enterprises are Haier-Carrier and Huss­ share, and the market share of household Chongqing Iceman, etc. mann; the main Japanese ones are Sanyo ice machine and industrial ice machine is After having a preliminary unde­ Cold Chain, Highly Nakano and Er small, especially household ice machine. rstanding of China cold chain sector, Shang-Fukushima. In recent ten years the combined average we will further introduce in detail the The main customer of freezer is growth rate of commercial and industrial development of refrigerator, freezer and mainly group client, which is also ice machine has been keeping at about showcase products home and abroad, as called specialized client, which indudes 20%, mainly because that their application well as the development of relative upstream enterprise of drinks, beer or dairy products. sectors are quite broad, including nuclear component sectors such as compressor and Those specialized clients have different power, water conservancy, hydroelectric insulation material in China. requirements­ on the freezer; therefore the market capacity of freezer is determined by the terminal clients. Cold drinks are mainly sold in summer, so the production ice machine of freezer has obvious seasonal chara­ cteristics, mainly in the first half of the year. Due to domestic economic growth and international economic recovery, the sales of freezer are rising year by year. The main manufacturing enterprises are Haier, Xingxing, Midea, Aucma, Hailishi, Hisense-Kelon, Baixue, Frestech and Meiling, etc, among which Haier takes the largest market share.

Household refrigeration: refrigerator Refrigerator is a well-known food cold storage equipment, playing a role in the final check along the cold chain from “farm to table” for food quality. In recent years China refrigerator sector has maintained about 25% of growth; due to the impact of financial crisis in

CEAM - July - 2011 9 Refrigeration

Production and Sales Realized Growth; Enterprises Kept High Operation ——Review of China Refrigerator Sector’s Development in 2010

With the gradual recovery of global 2009. (Chart 2/3) sales came from the policies of “Home economy, as one of “BRIC”, China’s With the accelerating increase of do­ Appliance to the Countryside” as well economy achieved a great result in 2010 mestic demand especially the demand as “Old-for-new” whose further imp­ and the refrigerator sector also kept of rural areas in the recent years, the lementation drove the emerging and de­ high level operation with impressive proportion of domestic sales tended to m­and update of the third and fourth tier achievement. be higher than that of exports. After the consumer market and urban market; the economic crisis in 2009 this situation was frenzy of the property market before Production Capacity Layout more obvious. The exports even showed the regulation in 2010 also stimulated Influenced by China domestic stimul­ negative growth. At the same time driven consumption, all of which drove the high us policies in 2009, the refrigerator sector by the domestic policies including “Home growth of refrigerator sales. Some insiders burgeoned; many enterprises began to ex­ Appliance to the Countryside” and “Old- believed that, besides the boosting of pand production capacity, especially the for-new”, the domestic refrigerator market the property market, the refrigerator refrigerator giants, among which Haier, scale was enlarged, which made the consumption entered replacement period Midea and Xing Xing increased more proportion deviation between domestic and the demand for high-end products than 20% of production capacity and the sales and exports more obvious. grew rapidly, which promoted the fast export champion Homa even increased Compared with the weaker exports, development of this sector. (Chart 4) more than 50%. the domestic sales of refrigerator in China As in 2009, the top five refrigerator Seeing the promising future of high- in 2010 kept high level of growth, with enterprises in 2010 still were Haier, end market, lots of enterprises increased annual increase of nearly 30% year on Midea, Hisense-Kelon, Meiling and Fr­ large refrigerator production lines; so­ year. e­s­tech. Those domestic brands took ab­ m­e m­e­dium and small refrigerator man­ The biggest stimulation of domestic s­olute dominance; foreign-invested br­ ufacturers also built new plants stimulated by the policies. Those expanded and newly-built production capacities began to be released gradually in 2010, which pushed the total production capacity of Chart 2 Refrigerator PSI from 2005 to 2010 (Unit: 10k sets) refrigerator in 2010 increased by 16% Sales year on year. (Chart 1) Year Production Inventory Total Exports Domestic Sales 2010 7058 6930 1834 5096 251 Characteristics of Production and y-o-y 26.4% 22.7% 6.7% 29.7% 107.5% Sales 2009 5585 5649 1719 3930 121 In 2010 the total output of China y-o-y 29.9% 32.6% 4.0% 50.7% -32.4% refrigerator sector reached 70.58 million 2008 4300 4261 1653 2608 179 sets, up 26.4% year on year; the total sales y-o-y 4.1% 3.7% 1.2% 5.3% 86.5% got 69.275 million sets, up 23% year on 2007 4129 4110 1634 2476 96 year; the exports realized 18.338 million y-o-y 28.9% 28.5% 19.5% 35.2% 10.3% sets; the domestic sales reached 50.964 2006 3204 3198 1367 1831 87 million sets; the inventory was 2.511 y-o-y 23.9% 20.0% 11.9% 26.9% 24.3% million sets. The production and sales in 2005 2585 2665 1222 1443 70 2010 achieved a new level compared with Source: ChinaIOL

10 CEAM - July - 2011 Refrigeration 50 70 90 70 90 210 200 500 210 165 550 400 160 130 620 980 835 Total Total Total Total Total Total Total Total Total Total Total Total Total Total Total Total Total Total Total 2841 1960 10131 Source: ChinaIOL 271 271 Others 92 92 Hangzhou 60 160 100 Tianjin Yingkou 75 175 100 Beijing Chuzhou 350 100 150 100 Dalian Henan Yangzhou 560 310 150 100 Hefei Nanjing Guiyang 940 340 100 200 200 100 Huzhou Jingzhou Chongqing Zhongshan Jingdezhen 10 375 250 120 130 150 1110 2145 Xuzhou Qingdao Chengdu Shanghai Mianyang Chongqing Guangzhou 50 70 90 70 80 210 200 250 210 165 550 400 160 130 400 650 350 250 1153 Wuxi 5438 Hefei Hefei Heifei Henan Ningbo Nanhai Suzhou Taizhou Taizhou Shunde Qingdao Qingdao Chuzhou Chuzhou Shanghai Changshu Zhongshan Guangzhou Region Region Region Region Region Region Region Region Region Region Region Region Region Region Region Region Region Region Region Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity LG TCL Total Haier Other Kelon Sharp Homa Midea Konka Baixue Aucma Meiling Toshiba Wanbao Siemens Frestech Hisense- Samsung Xing Panasonic Chart 1 Refrigerator production capacity summary sheet in 2010 (Unit: 10k sets) Notes: 1.* indicates predicted production capacity 2. From 2009 Midea brand includs Little Swan and Hisense-Kelon does not include Whirlpool-Hisense Co.,Ltd

CEAM - July - 2011 11 Refrigeration

an ds missed the top fi ve and only S iemens entered top ten. Haier was still the industrial leader but its domestic Chart 3 Change of proportion between China market share declined slightly; after the refrigerator sector domestic sales and exports from marketing integration of the three main 2004 to 2010 white electrical appliance products, Midea actively responded to the demand for high-end products and its market share rose greatly; the market share of Hisense- Kelon in 2010 increased slightly, with two brands co-operating currently. With the growth of production and sales, the inventory of refrigerator in China in 2010 also showed rapid increase, Source: ChinaIOL partly because that the market demand was high and the enterprises increased their inventories, and partly because Chart 4 China refrigerator sector concentration ratio that with the further implementation of in 2010 “Home Appliance to the Countryside” policy, the law of diminishing marginal utility was more obvious and the stock of the self-built channels of the enterprises also increased. From the second half of 2010 the inventory increased rapidly but the inventory of the enterprises was still under control in general.

Exports China refrigerator exports have been in a growth trend for a long time Source: ChinaIOL until the global economic downturn. In 2009 China refrigerator exports showed 7.77% of negative growth but recovered Chart 5 China refrigerator sector export volume and in the second half of that year. In 2010 amount evolvement from 2005 to 2010 (Unit: 10k the exports increased by more than 23% sets) and the 23.64 million sets of export volume created a new record; In addition, the average export price of refrigerator in 2010 dropped by 4.8% year on year, with each set decreasing 5.8 U.S. dollars in average. The export price of semiconductor household refrigerator had the largest drop of about 21% year on year. (Chart 5) Europe and America were still the Source: Customs General Administration main export markets of China in 2010. The United States has been the most important export market of China and it was also the one with the largest infl uence to China refrigerator exports. In 2010 the United States market took 18.9% of the also increased by more than 50% year on other competitors, and this proportion global market share, up more than 43% year. (Chart 6) was only 8.0% before 2008. As China’s year on year. Another major export market The enterprise with largest export refrigerator sector leader, Haier has been was Italy; China refrigerator exports to volume in 2010 was Homa. From 2009 reducing sales of profi t-gap refrigerators Italy in 2010 accounted for 10% of the to 2010 Homa expanded and consolidated and in profi t-gap regions; in 2010 Haier’s total exports, up more than 200% year on rapidly its refrigerator market share; in export volume accounted for 4.9% of the year. Besides, China refrigerator exports 2010 Homa’s export volume accounted total, with average export unit price rising to Britain, Germany, Russia and Spain for about 12% of the total, far exceeding further.

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Characteristics of Product manufacturers. gradually and the demand increase In China domestic refrigerator market stimulated by economic development and of 2010, the traditional double door Development Prediction the polices became dominant. refrigerator still took the largest market In early 2009, the gradual implem- Judging from the overseas situation, share of 65.8%, which was followed by entation of China economic stimulation IMF expects that the global economy in 3 doors refrigerator whose market share polices such as “Home Appliance to 2011 will grow 4.4%; while under the got 23.2%; single door and French door the Countryside”, “Old-for-new” and infl uence of debt crisis in Europe, Japan products took the smallest shares. In the “Subsidy for Energy Effi ciency“ pushed earthquake and the war in Libya, China aspect of domestic demand, the market the rapidly development of home refrigerator exports will continue to of middle and low-end single door and appliance sector. While from 2010 increase but the growth rate will not be double door refrigerator with small especially the second half of that year, the much higher than that in the recent two volume continued to shrink; double marginal utility of the polices diminished years. (Chart 8) door refrigerator product with high price quality will be favored by rural market; the market share of high-end refrigerator such as 3 doors, French door and side by side combination product is increasing, especially in urban market. (Chart 7) Chart6 Refrigerator export volume and amount com- In addition, energy effi ciency and parison by country from 2009 to 2010 environmental protection have become the trend of China refrigerator market in the recent years. More and more consumers took energy effi ciency rating and power consumption as the most important indicators to consider when purchasing. Therefore the market share of refrigerator with the fi rst level energy effi ciency will continue to rise in the future. Statistics show that in 2010 all refrigerator manufacturers launched more Source: Customs General Administration than 1600 models of new products, more than that in 2009, but the performances of the new products were identical, with Chart 7 China refrigerator market scale by type in 2010 selling points focusing on preservation, Unit: 10k sets CFC-free, sterilization and mute as well as varied color and material of appearance. Among new products in 2010, double door ones accounted for more than 90%, but the enterprises turned their strategic focus to high-end refrigerator with more than 3 doors, such as Eiffel series of Hisense, Casarte series of Haier, Athena series of Meiling as well as Vandelo series of Midea. High-end products not only meet the demand of consumers, Source: ChinaIOL but also achieve high profi t for the

Chart 8 China refrigerator market scale prediction from 2003 to 2012 (Unit: 10k sets) Item 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012* Volume 1961 2721 2665 3197 4110 4260 5649 6930 8039 9004 Sales Growth 38.7% -2.0% 20.0% 28.5% 3.7% 32.6% 22.7% 16.0% 12.0% Volume 1276 1726 1443 1831 2476 2608 3930 5096 6055 6842 Domestic Sales Growth 35.3% -16.4% 26.9% 35.2% 5.3% 50.7% 29.7% 18.8% 13.0% Volume 685 994 1222 1367 1634 1653 1719 1834 1984 2162 Exports Growth 45.1% 22.9% 11.8% 19.6% 1.1% 4.0% 6.7% 8.2% 8.9% Notes:* means predicted data Source:ChinaIOL

CEAM - July - 2011 13 Refrigeration

Sales Growth Created a New high; Production Capacity­Reached­a­New­Level ——Review of China Freezer Sector’s Development

Compared with the ups and downs nufacturing base in the aspect of ma- with volume more than 300L, totaling of other home appliance markets, the nufacturing capacity, therefore Shandong, 1.2 million sets annually. Before this production and sales of freezer have been Zhejiang and Anhui are called giant project some enterprises in Jiangsu and relatively stable. With the introduction freezer manufacturing provinces thanks Zhejiang region did OEM for Meiling, of policy of Home Appliances to the to rich home appliance manufacturing such as Handsam Electrical Appliances Countryside which brought benefi ts to and production capacities as well as many (Ningbo) Co., Ltd and Feilong Electrical refrigerator and freezer sector, the sales major production bases. Appliance Group. With Meiling’s own and production capacity of freezer all The production capacity of Meiling production base going to be put into reached a new level and achieved a good in 2011 will reach 1.2 million sets. operation, the release of production result in 2010. Meiling invested 375 million Yuan on capacity of the OEM enterprises will freezer production base and is going to also be a problem. Production­Layout­ put another 300 million Yuan of raised In recent years, the output of freezer funds into this project. After the fi rst and Characteristics of Production and in China has been maintaining below 20 second phases of construction, it can Sales million sets; with the gradual expansion boast annual production capacity of 0.6 It is said that the output of freezer of domestic market, this situation came to million sets of freezer with volume lower in China kept more than 30% of growth an end in 2010. than 300L and 0.6 million sets of freezer from 2009 to 2010, a major change According to the statistics of Chi- naIOL, the output of freezer in 2011 can reach 22.5 million sets, the highest growth in recent years. The reasons for this high growth are as followings: fi rst is the low market base; second is the stimulation from national policies such as Home Appliance to the Countryside. Chart 1 China freezer production capacity scale As special refrigeration equipment, the evolvement from 2008 to 2011 (10k sets) application of freezer in household fi eld is more limited than that in commercial fi eld, therefore it cannot realize explosive growth in household fi eld but has got great improvement in commercial fi eld. (Chart 1) Due to various factors such as tr- ansportation, resources, economy and human resources, currently the produc- t ion base of freezer in China mainly concentrates in East China. Freezer Source: ChinaIOL production is strongly depended on relatively mature home appliance ma-

14 CEAM - July - 2011 Refrigeration

compared with the market before 2009. The growth of output is partly due to the growing demand and partly because that the low price of freezer as the Chart 2 China freezer enterprise output growth from product on the extended production line 2009 to 2010(10k sets) of refrigerator seizes some market share from refrigerator.

The rapid development of freezer 1000 80% sector in the recent two years is largely 800 60% 600 40% benefi ted from the policy of Home 400 Appliance to the Countryside; while the 200 20% 0 0% First-tier Second-tier Others second-tier brands and local small freezer Brands Brands enterprises are more stimulated by the 2009 481 501 324 2010 589 728 442 policy than fi rst-tier brands. (Chart 2) Growth y-o-y 22% 45% 36% In 2010 the total sales of freezer First-tier brands：Haier and Xingxing reached 17.45 million sets, up 33.7% year Second-tier brand：top 8 enterprises excluding Haier and Xingxing on year, a new high compared with 28.3% in 2009. The huge increase of freezer Source: ChinaIOL sales is partly due to the policies of Home Appliance to the Countryside and Old-for- new, and partly due to the growth of export market. Infl uenced by domestic economic growth and international economic re- covery, freezer used in commercial fi eld Chart 3 China freezer market scale analysis from had some degree of development which 2005 to 2009 (10k sets) also promoted the sales of freezer. The main clients of freezer are group ones, including drinks, beer and diary product enterprises. (Chart 3) In 2010 the sales of Hisense-Kelon’s freezer increased by 74.5%, only lower than the 103% of Midea. This growth mainly came from export market. Among main enterprises, only Hisense-Kelon realized exports accounting for 50% of its total sales. Currently most main enterprises put focus on domestic market. Source: ChinaIOL (Chart 4) According to the statistics of ChinaIOL, in 2010 the domestic sales of freezer reached 10.93 million sets, up 22.1% year on year, with growth rate lower than that in 2009. Infl uenced by Chart 4 Contrast between China freezer domestic national policies such as Home Appliance sales and exports from 2005 to 2010 (10k sets) to the Countryside, in 2009 China freezer market grew rapidly; with the diminishing of the effects of polices in 2010, the development of this sector slowed down. Haier continued to keep its leading position in domestic market, but its growth rate dropped obviously. In 2010 Haier only reached a growth of 4.8%. Xingxing and Aucma followed afterwards with strong growth, especially Aucma, which maintained more than 50% of Source: ChinaIOL growth rate after the 64% in 2009. Midea increased by 106.5% year on year, the highest among freezer enterprises. In

CEAM - July - 2011 15 Refrigeration

addition, Midea expanded 4 million sets of production capacity in 2011 and set up freezer business sector, which shows that freezer sector is getting more and Chart 5 China freezer export market scale from 2005 more attention. Chinahls and Hisense- to 2010 (10k sets) Kelon were the only two enterprises with dropping growth rate. Both freezer and refrigerator are 800.0 60% refrigeration devices and they have so- 600.0 40% mething in common in production and application; therefore freezer can be 400.0 20% replaced by refrigerator in household 200.0 0% consumption aspect. So the main dom- 0.0 -20% estic market of freezer currently is in the 2005 2006 2007 2008 2009 2010 Export Volume 252.9 297.5 410.1 377.2 416.1 652.0 marginal fi elds such as store, farmer’s Growth y-o-y 17.6% 37.9% -8.0% 10.3% 56.7% market as well as restaurant. Its market is relatively fragmented and the product is in low-end level. Source: General Administration of Customs

Characteristics of Exports In 2010 global economy gradually recovered but the regional gap was deepening. The United State had strong Chart 6 China freezer exports by countries in momentum of recovery but its real 2010(%) estate and employment fi elds still faced challenges. The annual infl ation rising 80.0% rate of Euro Zone in December exceeded 70.0% 60.0% 50.0% the medium-term target of ECB, and the 40.0% 30.0% rising price index may lead to the rising of 20.0% 10.0% interest rate by ECB. The home appliance 0.0% -10.0% industry in Asia began to rebound and America Asia Africa Europe Oceania Growth of Export Volume 46.1% 64.6% 65.5% 55.4% 46.5% the profi t and loss of the enterprises were Growth of Export Amount 42.9% 66.8% 55.7% 54.2% 55.6% various. (Chart 5/6) Growth of Average Unit Price -2.2% 1.4% -5.9% -0.8% 6.2% In 2010 China freezer exports realized 6.52 million sets, up 65% year on year. The seasonal characteristic of freezer Source: General Administration of Customs exports is obvious; its busy season is from March to July; while from 2009, except February, the busy season extends from last November to July. As for freezer manufacturing enterprise, the production Chart 7 China freezer market scale by model in 2010 busy season concentrates in the fi rst half (unit: 10k set; %) of each year, especially before May. The export average unit price of 2000 40.0% 1745.0 freezer in 2010 was 155 U.S. dollars per 34.0% 33.0% 1600 1448.4 30.0% set, lower than the 156 U.S. dollars per 1312.0 30.9% 1200 1081.0 set of 2009. The export average unit price 25.7% 20.0% of freezer sector has been low; while with 800 10.0% refrigerator exporting experience, the 400 157.1 120.0 139.6 111.0 enterprises have been able to deal with 0 0.0% profi t and market share rationally. Upright Unit Horizontal Unit Commercial Unit Total Sales

Compared with 2009, the market 2010 2009 Growth y-o-y shares of main freezer enterprises in 2010 all had various degrees of declines. In 2009 Source: ChinaIOL the market shares of Haier and Xingxing were 23% and 15.5% respectively, while in 2010 the proportions dropped by 18.4% and 12.9% respectively. The market share

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of other brands showed growth, such as with volume of 160L and less increased enterprises try hard to expand. While after Midea and Chinahls. by 4 percentage points year on year, due the fi nancial crisis in 2008, the recovery In the aspect of export market, the to large market base, its growth realized of international was not satisfactory; export volume and amount of freezer all 52.9%, second only to that of the category although the increase of consumers’ realized certain growth, but the export with volume between 300L to 400L. consumption of the United States drove average unit prices of the continents were the growth of its economy reaching 3.1% various. In 2010 the export average unit Development Prediction in the fourth quarter of 2009, the rising oil prices of Asia and Oceania showed some In 2011 China freezer sector will face price caused by the unrest in the Middle growth but other continents all dropped, negative impacts from both domestic and East may undermine the purchasing power especially African market, with 5.9% of international markets. of the customers; in addition, the supply decline. In the aspect of domestic market, shortage due to the earthquake in Japan although the stimulation policies such and its subsequent impact will also slow Characteristics of Product as Home Appliance to the Countryside down the economic recovery, therefore As a special category between continues to be implemented in 2011, the the high growth of export market may not refrigerator and freezer, the market of marginal effects are diminishing gradually, be realized in a long time. upright freezer in 2010 kept relatively coupled with the reducing of allowable In the aspect of product, the entry high growth; in 2009 its total sales loan for the enterprises due to domestic energy effi ciency level of Home Appliance reached 1.2 million sets, and in 2010 the infl ation, and the great dropping of the to the Countryside project for freezer is number was up to 1.57 million sets. As a spending will of the customers which the second level. In 2010 the proportion conventional freezer product, horizontal deeply affects the direct clients of freezer, of product with the second level of freezer realized growth of 34.7% in 2010, the domestic environment freezer sector energy effi ciency rose to 80.6%. While a high growth rate compared with other faces in 2010 is more and more severe. It expanding market share, the technology categories. (Chart 7/8) is expected that in the next two to three of freezer sector was also improved. The The sales of product category with years, the market growth of freezer will energy effi ciency level of freezer in 2011 volume between 300L to 400L increased keep at about 15% and never realize more is expected to be further improved; with by 67.7% year on year, the highest in than 20% as in 2010; the overall growth the fi ercer market competition and higher 2010; compared with its sales in 2009, its of sales will not reach more than 30%. technical threshold, some non-standard market share was up 2 percentage points. In the aspect of exports, the export enterprises may be squeezed out of the Although the market share of the category market has been the one that many market.

Chart 8 China freezer product structure (according to volume) from 2009 to 2010

Source: ChinaIOL

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Global Refrigerator & Freezer Market

Global Production In 2010 the global output of refriger- ator (freezer) reached 173.4 million sets (deducting the double counting part due to OEM), and the products were sold in Chart 1 Global main refrigerator (freezer) production nearly 200 countries and regions. There continent distribution in 2010 (Unit: production were about 120 refrigerator manufacturing (million sets)) enterprises that set up plants in over 50 countries, including both developed and developing ones, which shows the characteristics of production in multiple centers and focusing on sales in nearby regions with sales all over the world as supplement. (Chart 1) In 2010 the global production of refrigerator (freezer) mainly concentrated in Asia, with total output of 119.98 million sets, accounting for 69.2% of the global output. The production in Asia was mainly in China, Thailand, India and South Korea. Europe ranked second, Source: ChinaIOL with total output of 27.11 million sets in 2010, accounting for 15.6% of the global output. The output of Africa and Oceania was the smallest. There were 19 countries with annual output of refrigerator exceeding 1 million Chart 2 Global main refrigerator (freezer) production sets in 2010, with wider and more country distribution in 2010 (Unit: production (million concentrated geographic distribution. The sets)) total output of the top ten countries took 84.9% of the global output. The country with the largest output was China, reaching 88.17 million sets; Thailand and Mexico ranked the second and third. The top three enterprises according to their output were Haier, LG and Midea, with combined output accounting for 24.8% of the total. (Chart 2) The layout of refrigerator (freezer) production in the world in 2010 was still transferring from developed countries to Source: ChinaIOL developing ones. In Asia it continued to transfer to Thailand, India and Indonesia; in America it was transferring to Mexico and Brazil; in Europe it was transferring

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from developed regions in Western and freezer, with annual production of It is expected that in 2013 the shipment Europe to Poland, Hungary and Russia 0.25 million sets. will get more than 0.21 billion sets, in Eastern Europe, or the European converted into terminal sales of 89.14 enterprises increased the purchase of Global Sales billion U.S. dollars. (Chart 3/4) OEM products from other enterprises in The global shipment of refrigerator The economies of most countries other countries, especially India, Poland (freezer) in 2010 realized 168 million in 2010 got better. The falling of and Russia. sets, up 17% year on year, converted unemployment, increasing of consumers’ into terminal sales of approximately confi dence, booming of real estate News of Global Enterprises’ Pro- 68.7 billion U.S. dollars. The expected market, as well as the implementation of duction shipment in 2011 can reach 185 million “Home Appliance to the Countryside” General Electric plans to invest 432 sets, converted into terminal sales of and “Old-for-new” policies in China, million U.S. dollars to set up four re- approximately 75.95 billion U.S. dollars. the preferential tax policies in Brazil, frigeration product design and pro duction centers in USA, so as to produce new energy-effi cient refrigerators as well as other electrical appliances. In order to further increase the share of white home appliance market in emerging countries such as China, Toshiba is carrying out a plan of white home appliance R&D localization, in order to relocate R&D center to enhance Chart 3 Global refrigerator (freezer) market per- signifi cantly the R & D capabilities of formance and prediction over years (based on plants in foreign countries such as China volume) (Unit: 10k sets) and Thailand. Panasonic will invest 6 billion and 2.5 billion Yen in Brazil and India respectively to set up refrigerator and washing machine plants. The new plant in Brazil will be located in the suburbs of Sao Paulo and put into operation in 2012, with annual output of 0.5 million sets of refrigerators and 0.2 million sets of washing machine. The plant in India will be built in Gurgaon of Hariana and put into operation in August 2012, with expected annual production of 0.5 million Source: ChinaIOL sets. In 2010 the product R&D budget of Electrolux for the plant in Nyiregyhaza in eastern Hungary was 5.2 million Euros. This plant was set up fi ve years ago with Chart 4 Global refrigerator (freezer) market perfor- investment of 85 million Euros; it has 3 mance and prediction over years (based on amount) production lines and 1350 employees and (Unit: 100 million USD ) can manufacture 580 refrigerator models. BSH Group sold its business in Brazil to Latin American home appliance enterprise Mabe Company on 1st July of 2010 whose headquarters is in Mexico. The acquisition included the production facilities and distribution channels of BSH in Brazil but did not involve other Latin American markets. Mabe will take over all the businesses and employees of Source: ChinaIOL BSH in Brazil. Refrigerator plant Atlant in Belarus set up industrial park in Kazakhstan in 2010; this industrial park produces refrigerator

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the “Eco-friendly Accumulated Points” policy in Japan, the “Energy-effi cient Home Appliance Discount Plan” policy with total subsidy of 0.3 billion U.S. Chart 5 Global refrigerator (freezer) sales market dollars in USA, the energy-effi cient home distribution in 2010 (Unit:volume (10k sets)) appliance subsidy plan in Thailand and the “ Refrigerator Old-for-new” policy in Volume Share 7000 40% Mexico, stimulated greatly the growth of 36.86% 6000 35% refrigerator (freezer) sales in 2010. 5000 30% 25% 4000 20.39% With the upturning of economy in 18.89% 20% 3000 15% 2011, the global refrigerator (freezer) 13.04% 2000 10% 7.06% 1000 2.77% 5% market will continue to prosper; 0.99% 0 0% Oceania Asia Africa Europe South America North America while due to the diminishing of the China stimulation from “Home Appliance to the Countryside” policy in China and the cancel of preferential policies of some countries, the growth rate will Source:ChinaIOL drop signifi cantly year on year. As global infl ation continues, the average unit price of refrigerator (freezer) will further increase in 2011. Chart 6 Refrigerator (freezer) product market share by category in 2010 (based on volume) (Unit: volume Characteristics of Sales Market (10k sets)) In 2010 the most important refrig- erator (freezer) consumption markets were China, North America and Europe. Except Oceania with weak sales growth, other continents all realized signifi cant increase in sales. The sales in China reached 61.89 million sets, accounting for 36.86% of global total sales; Europe realized 34.24 million sets. Accounting for 20.39% of the total; Asia got 31.71 million sets, accounting for 18.89% of the total; North America reached 21.89 million sets, accounting for 13.04% of the Source:ChinaIOL total; South America was 11.85 million sets, accounting for 7.06% of the total. (Chart 5) Chart 7 Refrigerator (freezer) product market share The sales in Asia were signifi cant. by category in 2010 (based on amount) (Unit: amount Not only China and India realized (10k USD)) excellent results, other regions such as Indonesia, Thailand and Vietnam also had rapid growth. At present China is still the largest refrigerator (freezer) consumption market in the world. In 2010 the “Home Appliance to the Countryside” policy of China stimulated huge consumer demand in rural market, and the “Old-for-new” policy also drove to some extent the sales of refrigerator (freezer) in the fi rst and second-tier market. Except in the Netherlands, Poland and Portugal that the sales of refrigerator dropped again on the basis in 2009 due to Source:ChinaIOL factors such as economy, the sales in other regions of Europe all recovered and began to grow. The demand from countries such

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as Russia had a huge increase. Chart 8 The main enterprises and brands of global refrigerator (freezer) The home appliance market of market United States as the largest refrigerator (freezer) consumption country recov­ Serial Company Name Main Brand er­ed significantly, especially the sales of large-size electrical appliances 1 Haier Haier which rose greatly driven by the policy of “Eco-friendly Accumulated 2 Hisense-Kelon Hisense, Rongsheng Points”. Although the home appliance consumption situation in Canada was 3 Midea Midea, Hualing / Royalstar / Little Swan not well, the growth momentum of the United States and Brazil drove the 4 Frestech Frestech overall sales of refrigerator (freezer) in America. 5 Xingxing Xingxing The overall sales of Africa were not bad, especially South Africa and Nigeria, 6 LG LG realizing explosive growth. The refrigerator (freezer) market of 7 Meiling Meiling Oceania performed poorly affected by 8 Baixue Baixue Australia.

9 Sanyo Sanyo Characteristics of the Market by Category 10 Panasonic Panasonic According to the sales volume, in 2010 refrigerator-freezer took 67.8% of 11 Sharp Sharp the market share; refrigerator took 15.2%; freezer took 17.0%. According to the 12 GE GE/Hotpoint / Amana sales amount, refrigerator-freezer took 75.8%; refrigerator took 11.1%; freezer 13 Electrolux Electrolux / Frigidaire/ took 13.1%. The average unit price of refrigerator-freezer was 457 U.S. dollars/ Whirlpool / Kenmore / Danby1/Maytag / set; refrigerator was 300 U.S. dollars/set; 14 Whirlpool, Maytag Magic Chef / Roper /Amana/Owens / freezer was 315 U.S. dollars/set. (Chart Kitchenaid 6/7) In 2010 the total sales of refrig­ ­ e­rator-freezer reached 114.15 milli­ 15 Sears Kenmore2 / Goldstar o­n sets. The sales of double-door refr­ igerator-freezer accounted for large 16 Mitsubishi Electric Mitsubishi parts of the total sales; the sales of 3 doors refrigerator-freezer, French 17 Hitachi Hitachi door refrigerator-freezer and side by side refrigerator-freezer all continued 18 Samsung Samsung to rise. The consumption markets of refrigerator-freezer mainly concentrated 19 Miele & Cie GmbH & Co Miele in the United States of America, Japan, 20 Indesit Co SpA Ariston/Hotpoint- Ariston / Stinol South Korea and China of Asia as well as Italy of Europe, and its market share 21 Hitachi Ltd Hitachi in Japan was the highest among other countries. 22 Dawoo Dawoo In 2010 the total sales of refrigerator realized 25.91 million sets; its main 23 Arçelik Arçelik / Beko / Altus / Awareness consumption markets included the United States, India and Russia. In 2010 the 24 Fisher & Paykel Active sales of freezer totaled 28.31 million sets, and its main consumption markets 1 Danby is one of the largest home appliance distributors in North America; it does not produce concentrated in Asia, Middle East and finished products, only OEM by other enterprises. Africa. (Chart 8) 2 Kenmore is one of the brands of Sears, OEM by other home appliance manufacturers.

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Showcase

Production­Layout China's showcase enterprises are mainly located in East China, North China and South China, among which the number in East China is the largest, Chart 1 China main showcase enterprise regional mainly in Shandong and Shanghai. China distribution (sale amount) showcase market is mainly occupied by foreign-invested brands, because that supermarket is originated from foreign countries and their supermarket showcase technology develops rapidly. The major Japanese enterprises among foreign- invested ones are Sanyo Cold Chain, Highly Nakano and Er Shang-Fukushima; the main European and American ones are Haier-Carrier and Hussmann. Those fi ve enterprises generally take 80% to 90% of the market share.(Chart 1/2) In recent years, supermarket retail sector has developed very fast in small Source:ChinaIOL and middle second and third tier cities, which stimulated the development of some state-owned showcase enterprises in those cities, such as Shandong Xiaoya Retail Equipment Co.,Ltd, Shanghai Jincheng Refrigeration Equipment Co., Chart 2 China main showcase enterprise production base distribution Ltd, Shanghai Furong Industry Co., Ltd, ZhongShan Jingli Refrigeration Eq- Enterprise East China South China North China uipment Manufacturing Co., Ltd and Epta ( Qingdao ) Retail Equipment Co., Ltd, Sanyo Cold Chain Dalian,Liaoning Qingdao, etc. In export market, Shandong Xiaoya, Haier-Carrier Zhongshan Jingli and Epta brought big Shandong impact to the original enterprises of this Highly Nakano Shanghai sector. Hussmann Shanghai In the next few years, the competition ER SHANG- Beijing within this sector will become increasingly FUKUSHIMA fi erce, while the dominant position of Little Duck Jinan,Shandong large foreign-invested enterprises in China Shanghai Jincheng Shanghai domestic market will not be shaken, and Zhongshan, Zhongshan Jingli the whole sector will form large-scale of Guangdong industrial development driven by those Qingdao, EPTA large brands. Shandong Shanghai Furong Shanghai Characteristics of Sales Source:ChinaIOL Surveying the development of China showcase sector in the recent years, there

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are two characteristics: fi rst, the overall scale is not large, with about 1.5 billion Yuan of sales annually; second, the development Chart 3 China Showcase sector market scale from is relatively slow, with only 1% to 5% of 2003 to 2010(0.1 billion RMB) growth rate each year. (Chart 3/4) The fi nancial crisis from the end of 2008 to 2009 brought some impact to the showcase sector; showcase export amount showed consecutive decline in the past two years and the export amount in 2009 dropped nearly by 30% compared with that in 2007. While driven by a series of policies Chinese government introduced, the number of supermarket in China increased rapidly, which stimulated signifi cantly the development of showcase Source:ChinaIOL sector whose domestic sales amount kept some degree of growth. In 2010, China showcase sector got rid of the shadow of Chart 4 China showcase domestic sales and exports economic crisis and recovered, with sale from 2008 to 2010(0.1 billion RMB) amount reaching 1.7 billion Yuan and growth rate exceeding 10%. China showcase manufacturers ma- in ly supplied to domestic market and the exports only accounted for about 10% of the total sales. The top fi ve enterprises were all foreign-invested ones; they entered showcase sector as well as China market in early period, therefore they got higher recognition in the market. Because that product quality and installation Source:ChinaIOL quality of showcase are very important for supermarket, most supermarkets with popular brands usually choose reputable brands when purchasing showcase. Chart 5 China showcase regional market proportion Judging from the regional market in 2010(according to sales amount) share of showcase, East China took the largest share; with the economic development of Zhejiang, Jiangsu and Shanghai, more than 70 large foreign- invested supermarkets opened in East China, which greatly promoted the market demand for showcase. Beside East China, North and South China in 2010 also got great achievements, mainly thanks to the development of Hebei, Chongqing, Fujian and Sichuan. Some enterprises also said that the sales in those regions Source:ChinaIOL were optimistic.(Chart 5) The distribution of large supermarkets such as Wal-Mart and Carrefour gradually became saturated; therefore they began to increase new stores in second and third tier markets, which stimulated the expansion also drove showcase sector to enter those to those markets. and development of showcase sector in markets. The local supermarkets in some Overall, the developments of showcase those cities. While the development of regions consolidated their position there sector and supermarket chain sector are small supermarkets and convenience by their own advantages and regional closely related and the regional market stores in third and fourth tier markets characters which also brought showcase development of showcase also depends on

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the location of supermarket chain. export market of Highly Nakano dropped China showcase export country mainly year on year. The export situation of concentrates in Europe and Southeast Asia., Exports domestic enterprise Zhongshan Jingli especially Japan and Malaysia. Those The exports of showcase took very in 2010 was better than Highly Nakano; regions are near to China geographically so small share and the export scale before Zhongshan Jingli achieved good results the transportation cost is low, therefore they 2007 was even less than 0.1 billion in Australian market. are favored by China showcase enterprises. Yuan. Driven by the main enterprises that launched a lot of high-end products in international market in 2007, the export amount realized doubled growth. While this growth did not continue in the following years; at the end of 2008 Chart 6 China showcase export amount from 2003 to the fi nancial crisis sweeping all over 2010(0.1 billion RMB) the world inevitably caused the decline of showcase exports. In 2010, with the overall recovery of international economy, coupled with the diffi culty of competing for domestic market for domestic enterprises, the enterprises paid more attention to export market. In 2010 showcase export market had substantial recovery, with sale volume up 30% year on year, but the export scale did not exceed 0.2 billion Yuan. (Chart 6) Source:ChinaIOL The situation of the growth rate of showcase sales volume being higher than sales amount in 2010 was more obvious Chart 7 China showcase export distribution in among domestic enterprises. Besides in- 2010(according to export amount) fl uence from exchange rate, the decline of product unit price was the main reason for this situation, which showed that there was serious “price war” going on in this sector and the profi t decreased gradually. The current growth of export market was mainly driven by foreign-invested enterprises such as Haier-Carrier and Sanyo Cold Chain. The growth of do- m estic enterprises such as Shandong Xiaoya and Zhongshan Jingli was also signifi c ant. In export market Haier-Ca rrier Source:China Customs became the largest winner, with gro wth of both sales volume and amount being No.1 in this sector; although its sales volume was not as many as Sanyo Cold Chain, the gap Chart 8 Comparison on degree of showcase industry between them was smaller and smaller. The concentration (including exports) from 2008 to 2010 biggest export market of Sanyo Cold Chain was Southeast Asia; 40% of its exports went to Japan, therefore the earthquake and tsunami happened in Japan in March 2011 brought some impact to the exports of Sanyo. The main export market of Highly Nakano shifted from Europe to Southeast Aisa. Previously Highly Nakano only supplied to two or three big customers in Europe; after the economic crisis Europe did not fully recover, coupled with the devaluation of U.S. dollar in Europe and Source:ChinaIOL the profi t was lower and lower, so the

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The demand from Russia and Australia was been excellent and stable, which won the Third, the requirement on food safety of also large. (Chart 7) favor of domestic customers. Er Shang- supermarket is more and more strict. From It is noteworthy that the export countries Fukushima also performed well in 2010; 1st of October 2009, the “Supermarket have different national policies; they may it had cooperation with 70% of top one- Purchasing Environment” policy made have requirements on environmental pro­ hundred supermarket chains, with growth by the Ministry of Commerce started tection of the products, and some have rate of about 15%, second only to Haier- to be implemented which stipulated restrictions on the usage of refrigerant. Carrier. strict rules on fresh food refrigeration Therefore it is particularly important to In 2010 Hussmann’s performance in supermarket: “Fresh food and raw provide suitable products to the customers was mediocre. After plant relocation material ingredient must be stored in low- based on their requirements. In addition, in 2009, it started internal adjustment temperature storage equipment, including the development of export country also and paid little attention to marketing, cold storage (cabinet) and freezer.” depends on local agents to develop coupled with the lack of price advantage, customer relationships by offering good its showcase performance did not show Competition Pattern: service. Although the entry threshold of much improvement. Perhaps only going The competition in China showcase showcase sector is relatively low but there through adjustment and change, its market will be more intense in 2011 but is certain gap between foreign enterprises development can enter a new stage. the brand pattern will remain stable. and domestic ones on technology and In 2010 the competition between process, especially in the aspect of high- Development Prediction Haier-Carrier and Sanyo Cold Chain end product. Therefore in order to keep has had new result: the leading position a foothold in international market, the Market Scale: of Sanyo Cold Chain in showcase sector enterprises must improve technology, In 2010 China showcase market has been shaken, which will cause great product quality and service as well as obtained better development. It is concern of this company; it is expected paying attention to national policies and expected that in 2011 this sector will that in 2011 the competition between this relative standards of different countries. also keep stable development and expand two enterprises will be fiercer. Highly market scale, especially in domestic Nakano and Er Shang-Fukushima mainly Characteristics of Enterprise market. There are mainly two reasons focus on high-end market; therefore Showcase sector is highly concent­ for this prediction: first, the domestic they will not have huge influence on the rated; judging from the development economy is getting better and better. The current pattern of showcase market. The in the recent years, the concentration year of 2011 is the beginning of China domestic enterprises also will not cause is deepening, with top five enterprises “Twelfth Five-year” project; based on much change to domestic market, but accounting for more than 80% of market the main national economic index got at they will have some impact on foreign share. (Chart 8) the beginning of 2011, China has come market. However, due to low entry threshold of out of the global economic crisis and showcase sector, the market competition the retail sector that is closely related Product Trend: is fierce. Judging from the sales amount to the showcase sector will keep stable The energy consumption of showcase of showcase enterprises in domestic development. In addition, China has been accounts for about 2/3 of the total of market, the top two were Haier-Carrier advocating expanding consumer demand supermarket, therefore the problem of and Sanyo Cold Chain. Haier-Carrier to strengthen the push of consumption on energy efficiency gets more and more had been engaged in internal adjustment economic development. Second, "Farm attention. The domestic supermarket in previous years and its sales were not and Supermarket Linking up" policy will is changing the extensive growth by well, therefore it did not arouse much expand market demand. At the “National expansion to delicacy management, and attention. In 2010 Haier-Carrier actively Farm and Supermarket Linking up” the procurement, as the most important carried out market promotion and seized conference jointed held by the Ministry of point, will also tend to be eco-friendly, market share, so its sales in the whole Commerce and Agriculture, it is suggested energy efficient and personalized. 2010 increased by 20% year on year, at during “Twelfth Five-year” period, the In May 2010 China’s first “Supe­ exceeding Sanyo Cold Chain and taking “Farm and Supermarket Linking up” rmarket Energy Saving Standard” was the No.1 position. It can be said that in policy will be fully implemented and the released in Wuhan; this standard involves previous years Sanyo Cold Chain had sales of fresh agricultural products in the electricity, water, air and material, etc, been No.1 in showcase sector; from 2000 supermarket of middle and big-sized cities among which the energy consumption of to 2002 Sanyo Cold Chain took nearly reached 30%, which was two times of the freezing and refrigerating equipment is 50% of the market share, but with the current sales. This requirement speeded up the main content of this standard. rapid development of other brand in the the opening of new supermarket and fair The research and development of recent years Sanyo Cold Chain’s market price shopping mall all over the country. energy saving product has been the focus share was diminishing. To realize this target, the supermarket’s of development of showcase enterprise. Highly Nakano, whose sales amount number will be increased or the current As for the current situation of price being ranked No.3, showed stable development supermarket will add cold chain terminal the most important factor, eco-friendly in domestic market in 2010. The product equipment such as showcase, and in either product with high cost may not win the quality of Highly Nakano has always way showcase sector will be promoted. favor of the customers in short term.

CEAM - July - 2011 25 Refrigeration

Founded as Qingdao No.2 Radio Factory in 1969, Hisense the biggest market share for a decade. has now developed into a group corporation which has two listed At Hisense, the emphasis is placed on innovation and companies (Hisense Electric Co., Ltd. (600060), on the Shanghai quality. The company has a global R & D network of more Stock Exchange, and Hisense Kelon Electrical Holdings than 2000 engineers and has a national-level R & D Center, Company Ltd. (000921), on the Shenzhen and Hong Kong Stock a post-doctoral research workstation, and a state-of-the-art Exchanges), owns three famous trademarks (Hisense, Kelon and multimedia technology laboratory. It has been the recipient Ronshen), and provides a wide range of products and services of several recognitions and awards in the name of innovation, including multimedia, home appliances, communications, technology, design, and quality management. In addition, information technologies and real estate. Hisense has partnerships with IBM, Hitachi, Whirlpool, and Hisense Kelon Electrical Holdings Company Ltd. (the AMD for the development and marketing of air-conditioners, “Company”) and its subsidiaries (collectively referred as refrigerators, and information technology. “Hisense Kelon”) are currently one of the largest manufacturers Over the past years, Hisense Co. Ltd has grown rapidly of household electrical appliances manufacturing enterprises in and it will continue to focus on such sustainable and profitable China. growth in the global market. Hisense enjoys providing new Headquartered in Shunde District, Foshan City, Guangdong experiences and values to its customers all around the world. Province, Hisense Kelon, as one of the first refrigerator Through fulfilling its commitment to continually deliver manufacturing enterprises , commenced refrigerator production innovative products and services, Hisense will enhance its in 1984. The sales volume of Hisense Kelon’s refrigerators and global presence in the multimedia, household appliance, air-conditioners has been among the highest in China for many mobile communications, information technology and real years. In particular, Hisense Kelon’s refrigerators have embraced estate industries.

Hisense International Co., Ltd

ADD: 17, Donghaixi Road, Qingdao, 266071, China Tel: +86-0532-83895188, 83878888 Fax: +86-0532-83866770 Http: //www.hisense.com E-mail: [email protected]

ADD: 08 Ronggang Road, Ronggui, Shunde, Guangdong, RPC 528303 Tel: +86-0757-2836 1400 Fax: +86-0757-28361060 Http: //www.hisense.com E-mail: [email protected]

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Founded in 1984, the Haier Group has been dedicated to competitiveness of catering to the demand of consumers in the innovation and creating a world famous brand over the past quickest time via “zero-distance virtual and practical network 26 years. Originally a small collective plant on the verge of combination”. “Virtual network” refers to the Internet, which bankruptcy, it has now grown into an international group which forms customer loyalty through online communities; “Practical has more than 70,000 employees around the globe and realizes network” refers to the marketing network, logistic network a turnover of 135.7 billion yuan in 2010. Haier has risen to be and service network, which helps realize the quickest delivery. the world’s No.1 brand of consumer appliances. In addition, it Therefore, a lot of world-noted brands commission Haier to was selected as one of the world’s Top 10 innovative companies manage part or all of their sales in China. In the meantime, issued by USA Newsweek’s website. Haier utilizes their channels overseas to sell its products. With Haier aims to create a world famous brand in the age of resource exchanges, Haier speeds up the pace of entering the the Internet, which features satisfying the personalized needs world market. of users in a short time. What such a business needs is large- Zero inventory with on demand manufacturing and delivery scale customization rather than massive production. Taking —— Giving up the traditional product-oriented development this opportunity provided by the Internet, Haier addressed this pattern, Haier adopts the user-oriented large-scale customization challenge and actively explored and practiced the “Win-win Mode of “on demand manufacturing and delivery”, realizing “zero of Individual-Goal Combination”. Through “Inverted Triangle” inventory” and “zero accounts receivable”. On the basis on organizational innovation and “End to End” ZZJYT construction, working capital zero loans, Haier’s cash conversion cycle reaches it realized the transformation from “selling products” to “selling minus 10 days. services” and fostered differentiated and sustainable competitive In future developments, to meet demand in the era of the advantages. Internet, Haier will place emphasis on U-Home integration, try Trend-leading R&D advantages —— The Haier’s patent to control the say on patent standards, further improve global applications total over 10,000- ranking first among Chinese home marketing networks and create more user resources. Meanwhile, appliance firms. Haier takes the lead to make breakthroughs the company will integrate worldwide R&D, production and sale in international standards. It participated in the drafting of resources with the “3 in 1” localized mode so as to create an 51 international standards, 27 of which have been issued and international brand. implemented. The company boosts the export of the entire While devoted to its development, Haier actively fulfils industry chain through standard output. its social responsibilities, assisting in the building of 129 hope Zero-distance virtual and practical network combination primary schools and producing the 212-episode children’s science —— Haier has enormous marketing network advantages in cartoon Haier Brothers. Haier was the sole consumer appliance China. In full combination with the Internet, it developed the sponsor for the Beijing 2008 Olympic Games.

Haier Group Company

ADD: NO.1 Haier Road Hi-tech Zone Qingdao China Zip Code: 266101 Tel: +86-0532-88939999 FAX: +86-0532-88938666 Http: //www.haier.net

CEAM - July - 2011 27 Refrigeration

Midea Group, established in 1968, is the largest white home transformation and production expansion projects, the total appliance enterprise in China; production capacity of Midea Refrigerator Division in 2010 In 2001, Midea entered refrigerator sector massively and exceeded 10 million sets and will reach 18 million sets in 2011. actively supported and fostered the development of this sector In 2010 Midea Refrigerator operated four well-known brands from a strategic height; including Midea, Royalstar, Hualing and Little Swan; the value In 2004, Midea acquired Hefei Rongshida and Guangzhou of Midea brand reached 41.208 billion Yuan, ranking No.6 among Hualing to expand production capacity; the most valuable brands in China. In 2005 Midea invested 1.5 billion Yuan to set up Hefei Facing fi erce market competition, Midea Refrigerator adheres refrigerating and cleaning home appliance industrial park to to technical innovation, self-transformation as well as developing complete its white home appliance layout; through technical update, setting up a national enterprise technical In 2007 Midea invested 1 billion Yuan to build refrigerator R & D center. In 2009 its R & D center and experiment center compressor production base in order to create refrigerator were offi cially put into operation, therefore the technical research industrial chain; and development capacities of Midea reached a new level. In 2008 Midea acquired Jingzhou production base, further Meanwhile, Midea Refrigerator seized development expanding production line; opportunities to increase investment on high-end refrigerator In 2009, by technical innovation, production expansion, fi eld by cooperating with internationally renowned design fi rm network improvement as well as a series of strong market and investing 400 million Yuan to set up high-end refrigerator promotions, Midea seized top position in high-end market and production base, laying a solid foundation for full participation devoted every effort to forge ahead toward the target of entering in high-end market competition. top two of refrigerator sector. Midea, with nearly ten years of rich experience in refrigerator In 2010, Midea Refrigerator Division had become one of the sector, has gone through numerous self-transformations and largest refrigerator production base and export base, and had fi ve improvements, laid a solid foundation and accumulated strong manufacturing bases in Hefei, Guangzhou and Jingzhou, with technical back ground to go forward towards the goal of “creating a total of 33 production lines; with the operation of technical a better life for mankind” with brand-new power.

Midea Group

Jolin Zhou Overseas Support Department Refrigerator Marketing Midea TID Tel: +86-0551-2213590 Mobile: +86-13855119036 E-mail: [email protected]

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HC-666WE HC-702WE

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Xingxing Group Co., Ltd. is a big enterprise with combination total capacity and sales volume jumped to the first rank and of production, research and development and investment, became firm foundation of Changjiang (River) delta housing including electrical home appliances, computer products, appliance manufacturing industry. photoelectric science and technology, financial investment, Xingxing has been modeling and challenging “number one”, development of real estate, shopping and consumption. Using pursuing to realize the perfect “number one”, was honored “China modern enterprise management; regarding managing as the Famous Brand”, “China Famous Product”, “China Products foundation; the technology as the guide; humanity and culture Free From Audit”, “China Most 50 Competitive Private-Owned as base. The enterprise successively passed through the approval Brand Enterprises”, forging the leading brand in China housing of ISO9001, ISO14001 and OHSAS18001; It also gains the appliances industries. honor of Observe Contract & Keep Promise and China Light Advanced and upgraded industry standard Valuing technology. Industry Enterprise of Quality & Benefit; Quality control award Xingxing Group built Province level technology center, formed of Zhejiang Province, Main high technological enterprise of by multiple science, industries professional specialists and R&D, Zhejiang Province and one of the first batch enterprises with participated in National 863 Project, National Torch Project, good credit all over the China. Xingxing household appliances National Product Invention Plan, and other high technology industry is one of the backbone industries of enterprise. At project etc. Xingxing also established branches together with present there are more than 12000 staffs. It can yearly produce China Science and Technology Researching Institution Computer 1.25 million pieces of chest freezers, 150 thousand pieces of Researching Dept., China Housing Appliance Researching showcases, 2 million pieces of refrigerators, 300 thousand pieces Institution, has been conducting the newest researching of water dispensers, 200 thousand pieces of air-conditions and achievement, extended technology leading advantage with dehumidifiers. Xingxing Group Co., Ltd. is one of the biggest comprehensive cooperation with international leading company production base of chest freezer in China, The volume of as well. production and marketing of Xingxing brand chest freezer tops Xingxing has been practicing “Go Abroad”, valuing domestic the front of other companies in this industry, Successively it gains and international market as well, established omnibearing and more than 100 honor titles such as china resound brand, national multi-storey sales agent network, 50% plus products sold well all consumer-satisfying products, golden bridge award of national around the world, established strategic partner relationship with salability brands, recommended products of china consumers’ Sony, Kodak, Motorola etc. association, china specially recommended products of domestic Xingxing has been striving to conduct “taking people as electrical appliance association. Xingxing refrigerator is also the foremost, growing with harmony” enterprise conception, the inspecting exempted product, and part of models of the proposing “Industry devoting to the nation”, “never feeling good water dispensers also get certificate of the American energy enough” profession conception, endeavoring to provide global consumption star. Xingxing electrical home appliances have consumers the most comfortable and qualified products and been exported for many years and many model of products have services. Xingxing will realize great-leap-forward development gotten approval of CSA, CE, UL. and succeed in forging first class international enterprise with Xingxing has been focusing on series of housing refrigeration the spirit of “China Xingxing is Chinese People’s Confidence” appliances products through rapid development in past 18 years, through continuous challenging and promoting itself.

Xingxing Group Co., Ltd.

ADD: 1 HONGXI ROAD JIAOJIANG TAIZHOU Tel: +86-0576-88022888 Fax: +86-0576-88022918 Zip Code: 318015 Http: //www.xingxing.com

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Dalian Sanyo Cold Chain Co., Ltd. is situated in the beautiful producing new, environmental protecting, energy saving products, coastal city-Dalian, Well known as the Pearl of North. It is the which contributing to the energy saving society in design, green Chinese biggest manufacturer founded by Sanyo Electric Co., purchase of parts, CP insulation and new refrigerant. Ltd., Dalian Bingshan Group and Sojtz Co., Ltd., specialized With our Business Aim of “satisfying customer”, we break in developing and manufacturing supermarket showcases, through the thinking limit from the “single equipment supplier” commercial kitchen equipments, convenience store facilities, air to “comprehensive solving scheme provider”. We not only take cooler for cold room and bio-medical equipments. the simple products, output and production as our goal, but create Since the foundation of Sanyo Cold Chain in 1994, our new techniques, provide new services, pursue perfect quality products have been the first in market share for many years in so as to create new business essence and stride forward from succession. We’ve obtained the certificates of certification of production to creation. ISO9001, ISO14001, OHSAS18001(for occupation health safety Dalian Sanyo Cold Chain goes with the world trend by system) and CCC successively, the level-Ⅲ electro-mechanic strict management mode of “ Humanization, standardization, installation qualifications and permit for production of medical digitization”. Today, faced with rapidly developing world appliance. In addition, we’ve been awarded the honorable titles economy, Sanyo Cold Chain won extensive acceptance, trust and of “ Advanced Technology Enterprise”, “Hi-tech Enterprise”, high comments of customers with enterprising attitude toward “AAA-Credit Enterprise”, “Double-Excellent Foreign-Invested work and powerful comprehensive strength. In the future, Sanyo Enterprise” of Dalian and China, “Top 50 big Tax Payer” of Cold chain is preparing all the time with our key capability to Dalian, “Most faithfulness and credit customer recommended being the No.1 brand in the cold-chain industry by the bank of Dalian City in 2004-2006”, “May 1st Labor Give us a chance and we’ll help you to get hold of endless Certificate of Merit in Dalian” and etc. business opportunities; Give us a support, and we will help you to With the high responsibility to the society, we regard “Creating realized your dream of fresh keeping! To condense fresh vigor, to fresh life” as our Business Essence and keep improving in create permanent quality, Sanyo Cold Chain offers a nice future.

Dalian Sanyo Cold-chain Co., Ltd.

ADD: No. 6, Songlan St., Economic Dev. Zone, Dalian, Liaoning, China Zip Code: 116600 Tel: +86-0411-87301182 +86-0411-87302232 Fax: +86-0411-87326991 E-mail: [email protected] Http://www.dalian-sanyo.com.cn

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Dalian Sanyo

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Dalian Sanyo

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Shanghai Highly Nakano Refrigerators Co., Ltd is a Sino-Japanese joint venture invested by Japan Nakano, Shanghai Highly Group and Japan Chatani Industrial Co., Ltd. in Shanghai in 1994, with the aim to provide service in the food distribution field in China and Southeast Asian countries. Our business scope includes product development, designing, manufacturing, installation and maintenance. We offer round-the-year round-the-clock maintenance services to the customers to make them feel at ease in using our products. Our products are not only widely accepted in China, but also in Southeast Asian and European markets. With the certificates of ISO9001 and ISO14000, we ensure every customer feel safe in using our products. Besides, we began to sell products with CE certificates in 2006, and our company has been authenticated as the “High-tech Enterprise” by Chinese government in 2008. To make more contribution to the development of low temperature distribution industry, we bring out a brand new series— “LOHAS” to all our customers.

Brief Introduction of Shanghai Highly Nakano Refrigerators Co., Ltd

ADD: No.955,Chuanqiao Road,Pudong New Area,Shanghai Zip Code: 201206 Tel : +86-021-58548221 Fax : +86-021-58547160 E-mail: [email protected] Http: //www. highly-nakano.com

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Being a joint venture established by Beijing ER SHANG (GROUP) Co., Ltd , and the FUKUSHIMA Co.,Ltd(Japan) specializd in producing showcases, the BEIJING ER SHANG- FUKUSHIMA MACHINERY ELECTRIC CO.,LTD. was open to business on November 19th 1993. The Company is mainly involved in production of commercial showcases for frozen and chilled foodstuff, prefabricated cold storage with main products over one hundred kinds and has successfully passed ISO9001-2000 international quality system certification. Based manufacture, quality test, project installation and after service. on advanced equipment , perpect production process and modern The manufacture equipment, technique software and technical management systems worked out in combination with specific drawing of our company are imported from Japan, the domestic conditions of the Company, products turned out thereform have manufacture management is in the charge of the vice GM of the reached first rate standards in the country both in performances Japanese party, which leads over 30 senior and middle professional and appearence. The company had increased its investment technicians, adopts the Japanese imported test equipment in the for the third time. By that time the Company shall possess an engineering technology and quality test, checks on according to even bigger size of production and higher technical standards to the Japanese management mode and guarantees the quality of ensure excellent product quality and develop an even brighter the showcase products. For the special board material, adopt the product brand. Japanese material, adopts the rustproof disposal in the surface, The company is mainly involved in production of showcases and the coherence has been improved greatly compared with the of frozen and chilled foodstuff, which also possesses the domestic congener products. For the heat insulation inside of the designing and installing capability of large, middle and small case, adopts the Poly Urethane Resin, adopts Japanese imported scaled showcases with the main products of over 100 kinds, and vesicant to mould and the heat insulation effect is excellent. The the annual capability has been up to 10,000 sets. The showcase surface of the case adopts the anti-static environmental coating, manufacture equipment of the our company all introduced high-temperature firing solidifying molding technique, the from the industrial technology of Japan FUKUSIMA, which adherence force is excellent, solid and durable, which is different organizes the manufacture strictly according to the Japanese from the common spray-coating mode in the market, and makes industrial standards. FUKUSIMA industry is one of the three the appearance luxury and imposing. The color can be chosen professional commercial refrigeration equipment manufacturers, freely by the users, harmonious with the shopping environment which is well-known with the exquisite technology, luxury and of the modern plaza, which does not only possess the excellent beautiful appearance and excellent credit. Under the guide of the refrigerating function, but also the excellent decorative effect. In Japanese experts, our company has systematically digested and the choosing of the electric components, for the key components, absorbed the imported management, technology, installation, etc, adopts the imported components, for instance the temperature which has possesses the integrative capability of product design, controller, expanding valve, cold wind screen fan, etc.

BEIJING ER SHANG-FUKUSHIMA MACHINERY ELECTRIC CO.,LTD

Factory ADD: Beijing huairou economic and technology development zone in hexi a street YanQi 8 Business ADD: Beijing fengtai south fourth west road 188 headquarters building no. 11 area 10 6 layers Zip code: 100038 Tel: +86-010-63470639 +86-010-63265955 Fax: +86-010-63265957 E-mail: [email protected]

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It is situated in the beautiful Spring City-Jinan, SHAN have been CE certifi ed. Our factory is now approved by ISO DONG XIAOYA RETAIL EQUIPMENT CO., LTD. Which is 9001:2008 and ISO 14000:2004. Take the advanced inspection located the Hi-tech development zone and is the development and test equipment so that build the internationally fi rst-class and production base that Xiaoya Group invested much money quality inspection line and test room. The company has developed and established. It produces and sells Xiaoya showcase, shelf, the assessment rules, established and improved the scientifi c and parallel connection units and so on. strict quality assurance system according to ISO9001:2008. At The company covers 41600 square meters, so far, it is one of present, the showcases have entered the supermarket and passed the largest scaled manufactures to produce refrigeration showcase the examination by the War-mart, Lotus Supermarket and RT- and shelves in China. The company takes advanced equipment Mart. The products are also sold to America, France, Italy, from Italy, Japan and Switzerland. It is controlled by data and Russia, Australia, Britain, and Southeast Asia when they are computer, operates easily and degree of automation is high. The selling in China. product is used the all-in-one design with fi rst class technology It strives for survival with quality and pursues development and quality. The appearance is special and luxurious, it is the best with science and technology, in conformity with the purpose of choose for modern supermarkets, chain stores, department store “improving the modern shopping environment and the living and convenient stores. quality of people”, we would like to devote our efforts with The company adopts advanced technical management and customers together and construct a healthy shopping environment QC, have high standard for quality, at present, All our products with fi rst-class products, the top quality and the best service.

E6 GUANGPING

Purpose:

The different temperature ranges can be set according to the different demands: 0 - 2℃ for marine products and fresh meat. 3~5℃ for dairy products, such as beverage, milk products, sausages and cooked foods. 6~8℃ for fruits and vegetables, etc. Two basic specifi cations: 2500mm and 3750mm. Can be jointed together to suit your length requirements. They are equipped with a head showcase when the cabinets are used back to back.

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E6 ST.PAWL

Purpose:

It is used to display and sell all kinds of frozen foods, ice cream, the marine products and so on, when the temperature is -18~-21℃. Three basic specifi cations: 1875mm (three doors), 2500mm (four doors), and 3750mm (six doors). Can be jointed together to suit your length requirements.

E6 INDIANA

Purpose:

It is used to display and sell all kinds of frozen foods, ice cream, the marine products and so on, when the temperature is -18~-21℃. Two basic specifi cations: 2500mm and 3750mm. Can be jointed together to suit your length requirements.

E6 ALASKA

Purpose:

It is used to sell and display kind of meat, cooked foods, milk products, and cold drink and so on, when the running temperature is 0~5℃. There are two style: self-contained and remote, four basic specifi cations: 1250mm, 1875mm, 2500mm and 3750mm, can be jointed freely, can choose the 90° corner cabinets.

SHANDONG XIAOYA RETAIL EQUIPMENT CO., LTD.

ADD: No.51 South Industrial Road, Jinan 250101, China. Tel: +86-0531-83122847 Fax: +86-0531-83122847 Http: //www.xiaoyaintel.com

CEAM - July - 2011 39 PART1: Upstream

Review of China Refrigerator Compressor Sector in 2010

Commercial Refrigeration Compressor

VIP Application is to become a New Trend in Home Appliance Insulation and Refrigeration Field

Main Manufacturers Upstream

Review of China Refrigerator Compressor Sector in 2010

1 Current Situation of Production Capacity­ Data showed that the production capacity of China refrigerator compressor Chart 1 Production capacity evolvement of China sector in 2005 and 2006 kept slight growth, refrigerator compressor sector from 2006 to 2011 at about 40 million sets, with little change; (10k sets; %) in 2007 it reached 77.7 million sets, up 66.4% year on year; in 2008 it totaled 110 million sets, up 41.7% over 2007; in 18000 70% 16000 60% 2009 it realized 115 million sets, down 14000 50% 12000 4.1% year on year. The main reasons for 10000 40% the rapid growth in 2007 and 2008 were 8000 30% 6000 20% as follows: with the rapid development 4000 2000 10% of China economy and the income 0 0% rising of urban and rural residents, 2006 2007 2008 2009 2010 2011 the demand for improvement of urban Production Capacity Y-O-Y middle and high-income groups as well as the popularity demand of township residents began to increase; while due Source: ChinaIOL to the economic crisis that broke out in October 2008, the expansion of refrigerator compressor sector in 2009 was limited, with only 4.1% of growth. As the economy of the countries Chart 2 Proportion of production capacity of the gradually stabilized and China began to enterprises in 2011 boost economic growth by stimulating consumption, the production capacity in 2010 increased by 8.6% to 124 million sets. The growth momentum in 2011 did not drop even on the high base; the production capacity in 2011 reached 156 million sets.(Chart 1) The refrigeration compressor giants in 2011 all started expansion signifi cantly; Huangshi Dongbei increased its pro- duction capacity to 26 million sets; Jiaxipera rose to 16 million sets; Gu- angzhou Wanbao grew to 15 million sets; Source: ChinaIOL Huayi Compressor continued to expand production scale by operating in the capital market following the successful

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operation of its “600 Project” at the end Technology Research Institute which this sector and in 2011 it will keep the of 2009. In 2011 the further issue program focuses on product development and the current production capacity and product of Huayi Compressor Co.,Ltd in capital rest 300 million Yuan for the supplement structure. market has got the approval of SASAC of the company’s liquidity. It can be seen Based on the production capacity of Sichuan Province. Changhong, as one that this expansion of Huayi targets high- proportion of the enterprises, Huangshi of the main shareholders, participated in end highly efficient inverter compressor Dongbei ranked the top, reaching 17%. this subscription with 300 million Yuan. market and commercial compressor (Chart 2/3) The total fund raising is expected to be no market which has great potential. more than 1.1 billion Yuan, among which In September 2010, Embraco Sn­ 2 Characteristics of Production and 322 million Yuan will be used on setting owflake EM4 production line was put into Sales up supper efficient inverter compressor operation, which increased its production The Production and sales of refri­ ­ production line with annual production of 5 capacity of refrigerator compressor from gerator in 2010 all exceeded 0.1 billion million sets, 400 million Yuan for building 6.6 million sets in 2009 to 8.6 million Yuan; the production increased by nearly highly efficient commercial compressor sets, among which there was inverter 30% year on year and the sales rose by production line with annual production compressor production line with output 27.5% year on year and the two kept of 6 million sets, 78 million Yuan for of 1 million sets. At present the inverter basically balanced. In 2010 the inventory the construction of Huayi Compressor compressor of Embraco is No. 1 in realized 4.89 million sets, up 104.8%

Chart 3 Production capacity changes of some enterprises in 2011

Enterprise Production Capacity

Huangshi Dongbei plans to invest on building Dongbei Industrial Park in the Gold Mountain Development Zone of Huangshi City and set up a new compressor production line with annual production of 3 million sets there as well as moving the existing production lines after updated and transformed to this industrial park. The annual production Huangshi capacity of Huangshi Dongbei will reach 12 million sets. The total investment for this project is about 326 million Dongbei Yuan, among which 283 million Yuan is for construction, 10.94 million Yuan for interest and 32.77 million Yuan for supplement of floating capital. Huangshi Dongbei is likely to continue expansion in Huangshi, reaching 40 million sets of total production capacity.

In 2010 Embraco improved production efficiency through transformation of production line, increasing production Embraco capacity to about 8.6 million sets without extension of the plant. Its production capacity is expected to remain unchanged in 2011.

Huayi Compressor announced that its further issue program drew up at the beginning of this year has got the approval of SASAC of Sichuan Province. Changhong, as one of the main shareholders, participated in this subscription with 300 million Yuan. With Changhong being as the helm, the production expansion of Huayi Compressor will be on the agenda. Based on the further issue program announced previously, the raising fund will Huayi be invested on setting up new super efficient inverter compressor production line with annual output of 5 million sets and highly efficient commercial compressor production line with annual output of 6 million sets. Prior to 2010, the company's annual production and sales volume reached 20.93 million compressor units, both reaching the highest level, becoming the first domestic industry, the world's second largest manufacturer of refrigerator compressors.

It is said that Samsung has built refrigerator compressor production base in Suzhou and its production capacity is Samsung expected to reach 4.5 million sets in 2011 and 13.5 million sets in 2013.

The second phase of compressor production project, as the “Key Project of Zhejiang Province” and “Eco-friendly Hangzhou and Energy Efficient Compressor Project”, covers 252 acres and is going to put into operation at the end of 2011, Qianjiang with daily production of 60,000 sets and annual production of 15 million sets. It is expected that the total production capacity of this enterprise in 2011 will realize 17 million sets.

Source: ChinaIOL

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Chart 4 China refrigerator compressor sector operation data from 2008 to 2010(10k sets)

Year/Item Output Sales Inventory Sales-output Ratio 2010 10191.3 10046 489.4 98.57% Growth y-o-y 29.90% 27.47% 104.84% 0.80% 2009 7845.7 7881 238.9 100.45% Growth y-o-y 21.83% 22.51% -6.64% 0.80% 2008 6439.7 6432.8 255.9 99.90% Growth y-o-y -2.30% -1.80% 17.90% 0.60% 2007 6594.1 6550.8 217 99.30%

Source: ChinaIOL

Chart 6 refrigerator compressor exports contrast from 2006 to 2010(10k sets)

Year Item Export Volume(10k sets) Export Amount(10k USD) Average Unit Price(USD/set) 2010 Number 1725.1 58529 33.9 Growth y-o-y 47.61% 63.38% 10.40% 2009 Number 1168.7 35824.9 30.7 Growth y-o-y 2.6% 3.1% 0.4% 2008 Number 1139.1 34764.1 30.5 Growth y-o-y -6.1% 5.9% 12.7% 2007 Number 1213.1 32840.1 27.1 Growth y-o-y 62.0% 70.4% 5.2% 2006 Number 748.9 19270.1 25.7

Source: China Customs

year on year. Affected by the economic crisis erupted in 2008, the refrigerator compressor sector dropped to some extent; driven by the proactive consumption stimulation policies of the government in 2009, the production and sales of this Chart 5 Refrigerator compressor production and sector rose year on year once again. On sales growth comparison in 2010(10k sets) the basis of steady economic recovery of 2009, the output and sales in 2010 all exceeded 0.1 billion sets; the sales-output ratio in 2010 reached 98.6%, which was lower than that in last year due to the expansion plans of lots of refrigerator compressor enterprises, but the output and sales kept basically balanced.(Chart 4/5) In 2010 the inventory increased signifi cantly, mainly because that the general expansion of the enterprises as a Source: ChinaIOL way to seize market share but the demand growth was slower than the production growth, which defi nitely caused the rising of inventory. The output and sales of refrigerator compressor in 2010

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rose fi rst then dropped; since April this high-end market. Embraco Snowfl ake’s There are home appliance giants such as sector declined in operation but started to compressor exported to Japan in 2010 BSH,Electrolux, Indesit, Arcelik, Fagor, recover from November. China began to reached 385,000 sets, up 722% year Candy, Vestel and Gorenje in Europe, carry out structural transformation of the on year, most of which supplied to the which have great demand for components; economy and transformation of economic Sharp’s compressor product-Vcc series. besides, European market has high growth mode; consumption issue was With the leading edge in technical requirement on the energy effi ciency and highly focused than ever. In 2010 the research and development, Embraco environmental protection on compressor output of China refrigerator compressor Snowfl ake launched inverter compressor which offers external driven force to the totaled 101.91 million sets. According to products in both domestic and export technical research and development of usual practice, the period from March to market. (Chart 8) China refrigerator compressor sector. August is the traditional busy season of The data above shows that in 2010 The product exported to South American this sector, and the output in April can China exports to Europe stagnated, mainly market mainly uses R134 which is not reach the peak of the whole year. While because that the economic outlook of most eco-friendly, therefore the exports to this in 2010 the output kept stable compared European countries was uncertain and the region dropped gradually. In 2010 the with last year; driven by the consumption people’s consumption level was not as exports to Asia continued to increase, stimulation policies of China, the overall high as before due to Europe’s sovereign- reaching 57% of the total, which is as output was higher than that in previous debt crisis mentioned above; while Europe same as that in 2007; the reasons for this years and there is little gap among is till the main export continent of China. growth are as follows: Asia is the most months.

3 Exports The global economy had got out of the haze of economic crisis in 2010. Although the Europe’s sovereign-debt crisis followed affected in some degree the compressor sector of China, the Chart 7 China refrigerator compressor export situation was much better than that in evolvement from 2006 to 2010 2008 and 2009. In 2010 China refrigerator compressor exported 17.251 million sets, up 47.6% year on year; the export amount totaled 585.29 million U.S. dollars, up 63.4% year on year, higher than expected. The average export unit price in 2010 realized 33.9 U.S. dollars/set, up 10.4% year on year, which is due to the rising of upstream raw materials’ prices and also indicates that the export product structure of China is further optimized and the high-effi ciency models are gradually Source: China Customs accepted by foreign market. At the same time, due to the rising of brand value, the bargaining power of Chinese enterprises Chart 8 China refrigerator compressor export region is also growing. (Chart 6/7) distribution from 2006 to 2010 It can be said that with the industrial transfer of global refrigerator compressor sector in recent years, China has become the largest refrigerator compressor production country. The global demand for refrigerator compressor heavily depends on the output of China and therefore the continuous growth of Chinese exports is inevitable. At present Jiaxipera and Huangshi Dongbei are still keeping high growth of exports to European markets. Jiaxipera has been Source: China Customs awarded in two consecutive years of the outstanding supplier award by Siemens and it is gradually entering European

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populous continent; its economy develops capacity is mainly for R600a small highly in China market and the development rapidly; the rising of emerging markets effi cient products, and Huayi are also potential of highly effi cient products was such as India and Indonesia ensures the expanding R600a refrigerator compressor quite large. In 2010 the low-effi ciency exports of middle and low-end products production to adjust product structure refrigerator compressor (COP<1.5) in of China. and improve market competitiveness. China accounted for 30%, down 4% year Data shows that in 2010 Turkey was R134 is another widely used refrigerant on year; the medium-effi ciency products still the country with the most imports of among China refrigerator compressor (1.5≤COP<1.8) took 60%, up 2% over compressor from China, totaling 3.153 enterprises; the market share of R134 2009; the high-effi ciency ones (COP million sets, up more than 37%. Alt- compressor products is large in Middle ≥1.8) got 10%, also up 2% year on year, hough the export proportion to Turkey East and South America and in short and this type of products of Embraco dropped slightly in 2010, it still ranked time the its share will not fall too much; accounted for as high as 44%. The data No.1 according to its imports from in 2009 the share realized 20.6%, down above shows that the product structure China. Turkey has special geographical 5.5% year on year. of Embraco based on energy effi ciency location and background. After the EU COP is an important index for has obvious advantages and is conducive enlargement, the Eastern European co- evaluation of energy effi ciency. Data shows to face market completion in the future. u ntries that newly entered EU have that in 2010 the proportion of products Besides, the small highly effi cient models advantages in geography, culture and with COP<1.5 took 30%; 1.51.8 high approvals from insiders. Highly, intensive industries in Western Europe, products took only 8%, which indicated Huangshi Dongbei and Huayi will also therefore they become the fi rst choice for that there were mainly products with put forth efforts on development and the relocation of the Western European medium and low-end energy effi ciency production of highly effi cient products. enterprises. In the home appliance fi eld, this trend is more obvious. Besides, some multinational companies shifted the pr- oduction bases as an important means to avoid trade barriers. Turkey crosses Europe and Asia and it is also a member of EU. Some home appliance giants set up plants in Turkey, making use of the advantages such as labor as well as entering Chart 9 Refrigerator compressor product structure EU market which is more self protective in 2009 and 2010 through Turkey. Data shows that besides Turkey, Russia and Japan were also large According to refrigerant: importers in 2010. The exports to Russia reached nearly 1.21 million sets, up 114% year on year; the exports to Japan totaled 546,000 sets, up 342.5% year on year. The rapid growth of exports to Japan was largely because of Embraco’s large number of supplies of inverter compressor to Sharp, which showed that Japan’s demand for high-end compressor product has began to shift to China.

4 Characteristics of Products According to energy effi ciency: The proportion of products using R600a as refrigerant in 2010 reached 79%, up 1% over 2009. With the active promotion of European environmental organizations, the application of R600a will become the trend. At present there are many refrigerator compressor enterprises in China mainly focusing on R600a compressor products, such as ZB series and N series of Jiaxipera and EM series of Embraco, which have got Source: ChinaIOL a lot of attention. In the “600 Project” of Huayi, the newly increased production

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5 Development Prediction 3 to 5 years, the global market will lack In addition, the rising of raw materials’ Environment of Domestic and Export new economic growth points brought by costs makes the product smaller and more Market technical innovation; the new energy and efficient. All of the factors mentioned China refrigerator compressor market raw materials are only the replacements above rely on technology. in 2011 will grow steadily. In 2010 the for existing ones, while low-carbon ec­ No matter in global market or China production and sales of this sector all onomy puts more emphasis on long- domestic market, inverter compressor exceeded 0.1 billion Yuan, achieving term sustainable development rather than performed not well; it seems that the ente­ a historic breakthrough. The reasons short-term rapid growth. The costs of new rprises still regarded it as a proof to their for this growth are as follows: first, the energy and raw materials are higher than R & D ability and enrichment to their industrial policies such “Home Appliance the existing ones and the industrial scale product structure. Inverter compressor to the Countryside” implemented in is far from enough to sustain the strong indeed represents a future development China broadened rural market; second, the growth of global economy. trend of refrigerator compressor. In international refrigerator compressor sector The year of 2011 is the beginning of 2010 Embraco still put focus on its third is gradually shifting to China; half of the the “Twelfth Five-year Plan” of China and generation of VCC intelligent inverter compressor supplies in the world is from various industrial polices come out one compressor and thus took most market China and China also boasts the most stable after another, among which a basic one share of China inverter compressor market and broad market in the world. is to promote domestic demand, change as well as exporting in large number to Currently China’s economy is ru­n­­­ economic growth pattern and raise the Japan. In addition, Embraco just released n­i­ng well; the economic growth pattern consumption proportion in GDP. In view a new technology which can make linear is being adjusted to be based on co­ of this, the white home appliance sector compressor operating in variable capacity nsumption; the favorable policies such represented by refrigerator will be benefited; and oil-free and it can save 30% of as Home Appliance to the Countryside therefore the outlook of refrigerator energy. The ZBC-VY series of Jiaxipera is continue to be implemented, all of which compressor sector is gratifying in the next famous for its wide refrigeration capacity ensure the optimistic market forecast of 5 to 10 years. In 2010 many enterprises range and high efficiency. The production refrigerator as well as other white home expanded production due to the situation capacity of inverter compressor of Highly appliance products in 2011. While with of demand exceeding supply often still keeps at about 2 million sets, and its the diminishing of the influence from the appeared in 2009, which means that the “C series” inverter compressor’s COP can policies, it needs time to see whether the production cannot keep up with the pace realize 2.0. Hangzhou Qianjiang has been consumption power of rural market after of sales. So in 2011 the production of the focusing on low-efficiency products, but is several years of expansion can keep strong enterprises will be more vigorous and the also planning to seize more market share or not. In addition, the real estate market output is bound to reach a new high. in inverter compressor sector; its newly is restricted continuously by policies, launched “VFC” inverter series, with which is also a hidden trouble for white 2 Product Technical Development 600a as refrigerant, also realized COP home appliance market. Di­­re­ction of 1.9. It can be said that all enterprises, In 2011 there are many uncertainties in The current technical development regardless of their technical R & D levels, external environment, among which three trend of refrigerator compressor is towa­ are trying to take a place in inverter field. ones will hinder the recovery of global rds environmental protection, energy- The overall development of China economy. First, Japan’s earthquake will saving, small size and high efficiency. As refrigerator compressor sector tends to affect greatly the refrigerator compressor one of the appliances with high energy be smaller in size and highly efficient. sector, especially inverter compressor consumption, refrigerator’s demand for Enterprises such as Jiaxipera, Guangzhou sector which has great demand. At the energy-saving and env­ironmental prot­ Wanbao, Huangshi Dongbei and Hangzhou same time the toxic assets in Europe and ection is extremely urgent. At present the Qianjiang have been developing in this America are not completely wiped off; international community is more and more field all the time. The ZB and N series the financial institutions are unwilling to aware of the problems such as energy of Jiaxipera, with R600a as refrigerant, lend money, which reduce the initiative shortage, environmental pollution as have been the flagship products of this of personal investment, and the effective well as global warming, and all countries enterprise. The production equipment and stimulation created by government inv­ are seeking ways to develop energy- technology of Highly come from ACC; estment is offset to a certain extent. saving and eco-friendly and new energy the latest small highly efficient model of Second, U.S. consumers have changed industries; the climate summit held in Highly is HH series. At present Hanghzou con­s­u­mption patterns and increased Copenhagen in 2009 also put more focus Qianjiang has phased out compressors savings ratio; while the replacing consu­ on this issue. Refrigerator, as a major with R12 as refrigerant, and is promoting mption group has not appeared in the consumer product, runs 24 hours per day, new eco-friendly compressor products world, therefore the global demand will which consumes a lot of energy; therefore with R600a and R404a refrigerant; its be affected. Third, the large number of its main upstream component compressor “WS” series compressor changes the bankrupt companies lowers the level of needs to be more energy efficient. A clients of Qianjiang from the ones in global capital stock and output, and the number of technical-advanced foreign- retail market as well as a small parts of high unemployment also hinders the invested enterprises have launched enterprise clients to mainly a first-tier recovery of global trade. Within the next inverter or linear products in the market. refrigerator and freezer brands.

46 CEAM - July - 2011 Upstream

Commercial Refrigeration Compressor

There are a wide range of products 3kw to 5kw. The application of hermetic in commercial refrigeration field, such as scroll compressor in refrigeration market refrigerator, freezer and wine cooler, with is relatively limited, mostly used in small small cooling capacity of several scores household air conditioner and commercial of watts, and cold storage with large air conditioner system. Restricted by cooling capacity of thousands of watts. technology and cost, this product is Therefore the compressor used in this rarely used in working conditions with field is also various. The compressor can temperature lower than -5 ℃, but under be divided into four categories: hermetic conditions with temperature higher than reciprocating compressor, semi-hermetic -5 ℃ it has a great advantage in cost. reciprocating compressor, hermetic scroll compressor and semi-hermetic screw Semi-hermetic reciprocating comp­ compressor. ress­or: semi-hermetic reciprocation co­ m­pressor is widely used, with cooling capacity of stand-alone unit from 3kw to 100kw; it can have multiple heads parallel-connected, and therefore its cooling capacity can reach 3kw to 1000kw. It can be used in various working conditions including low-temperature ones. It has the largest market scale. The stand-alone unit is less and less used, and the parallel-connected unit becomes more Semi-hermetic screw compressor: and more popular. In the future it will be the stand-alone unit of this product has squeezed out the market by scroll and cooling capacity ranging from 30kw to screw compressors. 1500kw. The output of screw refrigeration compressor which can be used in cold storage, artificial ice rink and water chiller takes about 1/3 of the total output. Double- Hermetic reciprocating compress­ rotor compressor accounts for about 80% or: the cooling capacity of most hermetic of the market share, mainly used in middle reciprocating compressor ranges from and large refrigeration equipments and several scores of watts to hundreds of under various conditions including low- watts, and even thousands of watts. It is temperature ones. The market of semi- mainly used in household refrigerator hermetic screw compressor is growing, (the cooling capacity of refrigerator so is the market of open-type screw compressor generally is 300w or less compressor used for large-scale industrial and no more than 500w). Hermetic refrigeration. reciprocating compressor in commercial use includes freezer and small commercial Hermetic scroll compressor: the Characteristics of Domestic Market refrigeration equipment, such as freezer, cooling capacity of scroll compressor is In 2010 China refrigeration sector showcase, wine cooler, vending machine, from 0.75kw to 15kw (excluding special developed rapidly; influenced by the ice machine, etc. modes), and most of them range from stimulation policies on downstream cold

CEAM - July - 2011 47 Upstream chain, the market demand for commercial China to expand the sales of refrigeration Characteristics of Imports and refrigeration compressor grew gradually, compressor. In addition, Danfoss also Exports and more and more enterprises increased put a whole industrial chain including From 2007 to 2010, China commercial investment on commercial refrigeration research and development, procurement, refrigeration compressor sector did not compressor fi eld. In 2010, the sales production and sales in China in order form concentrated production scale and of China commercial refrigeration to meet the demand home and abroad. most of the products were imported to meet compressor totaled 1.392 million sets, (Chart 2) market demand. With the acceleration three times of the total sales in 2009; the apparent consumption reached 1.325 million sets, up 25% year on year. The reason for the rapid growth of domestic total sales was that in October 2009 set up a new production line in Wuqing, which made its total sales of the commercial refrigeration compressor in 2010 rea- lizing 1.242 million sets. In addition, Chart 1 China commercial refrigeration compressor the sales of other brands such as Bitzer, total sales and domestic consumption evolvement Copeland, Sanyo, Xueying and Beifeng (10k sets) in 2010 also had various degrees of growth. (Chart 1) In the aspect of market share, China commercial refrigeration sector did not have mainstream manufacturing enterprises, mainly relying on imports to meet domestic market demand. Although there were domestic brands such as Xuemei, Xueying, Beifeng, etc, and some enterprises which had leading position in air compressor or air conditioner co- mpressor market such Hanbell and Fusheng also began to enter refrigeration Notes: total sales (sales of products manufactured in China) fi eld, foreign-invested brands still took equal domestic sales plus exports dominant position in domestic market. Domestic apparent consumption equals domestic sales plus imports According to the statistics of ChinaIOL, in 2009 both the domestic Source: ChinaIOL sales and exports of China commercial refrigeration compressor increased sign- i fi cantly; in 2010 the domestic sales of commercial refrigeration compressor reached 314,000 sets, up 18% year on year. In addition, the exports of Chart 2 China commercial refrigeration compressor domestic commercial refrigeration co- domestic sales and I/E evolvement from 2007 to mpressor in the fi rst time exceeded 2010 imports, reaching 1.079 million sets; the hermetic reciprocating compressor of Danfoss exported 1.07 million sets in 2010, up 445.9% year on year. While at present China domestic compressor enterprises still do not have the strength of exports. In recent years, major refrigeration compressor enterprises home and abroad are all optimistic about China market. World’s leading compressor manufacturer Copeland increased inv- Source:ChinaIOL estment in China; Bitzer of Germany, BOCK of Germany and Dorin of Italy all set up brand companies or plants in

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Chart 3 China commercial refrigeration compressor import and export data from 2007 to 2010

Item Product 2007 2008 2009 2010

Hermetic Reciprocating 0.00 0.00 19.60 107.00

Semi-hermetic Reciprocating 1.36 1.15 0.53 0.83

Exports Hermetic Scroll 0.00 0.00 0.00 0.04

Semi-hermetic Screw 0.00 0.00 0.00 0.00

Total 1.36 1.16 20.13 107.86

Hermetic Reciprocating 107.80 93.04 75.67 89.30

Semi-hermetic Reciprocating 0.18 2.96 2.15 3.12

Imports Hermetic Scroll 0.53 0.85 1.48 2.23

Semi-hermetic Screw 0.01 0.08 0.09 0.09

Total 108.52 96.92 79.38 94.74

Hermetic Reciprocating -107.80 -93.04 -56.07 17.70

Semi-hermetic Reciprocating 1.18 -1.81 -1.62 -2.30 Trade Balance(Exports- Hermetic Scroll -0.53 -0.84 -1.47 -2.19 Imports) Semi-hermetic Screw -0.01 -0.08 -0.09 -0.09

Total -107.17 -95.77 -59.25 13.12

Source: China Customs

Chart 4 China commercial refrigeration compressor main import brands and balance sheet by country

Brand Brazil Slovakia Germany France Thailand Japan Spain USA Indonesia Singapore Italy Slovenia

Tekon ● ● ●

Aspera ● ● ●

Danfoss ● ● ● ●

KK ● ●

Sanyo ● ●

Copeland ● ● ● ●

ACC ●

Bitzer ●

Maneurop ●

Panasonic ● ●

Dorin ●

Frascold ●

Carrier ●

Source: ChinaIOL

CEAM - July - 2011 49 Upstream

of enterprise nationalization process, totaled 233,000 sets, up 83.1% year on sector. China Danfoss’ commercial re- the imports of domestic commercial year. In the recent years the market share of f rigerator compressor was mainly refrigeration compressor relatively de- KK of Thailand in China increased year on imported from Slovakia and Germany; clined. Since in 2009 Danfoss set up year, so did the imports. The performance Copeland's product was mainly imported production line in China, the domestic of Danfoss’ products was excellent and from Germany, France and the United commercial refrigeration compressor ex- it has high brand acceptance, therefore States, and its imports in 2010 showed p orts grew rapidly. In 2010 the exports Danfoss has been in the leading position huge growth, nearly two times of that totaled 1.0786 million sets, exceeding of commercial refrigeration compressor in 2009. In 2010 the imports of Bitzer imports in the fi rst time and realizing trade surplus. While products such as semi- hermetic screw compressor and hermetic scroll compressor still relied on imports; the advanced production technology was monopolized by foreign enterprises. The domestic compressor enterprises such as Xuemei, Xueying and Beifeng mainly produced semi-hermetic reciprocating compressor. (Chart 3) Currently the hermetic reciprocating Chart 5 China commercial refrigeration compressor refrigeration compressor used under import original countries and proportion contrast medium and low temperature is widely applied in commercial fi eld such as cold storage, refrigerated transportation, refrigerated processing and showcase, etc. Among major manufacturers, foreign-invested ones include Bitzer, Copeland and Sanyo, and domestic ones include Xuemei, Xueying and Beifeng, etc. Bitzer's supply of this product is the largest, followed by Sanyo. With the acceleration of enterprise nationalization, the imports will be smaller and smaller. Source: ChinaIOL Enterprises such as Danfoss and Embraco all accelerated their nationalization process in the recently two years to follow up the development of the market. (Chart 4) Chart 6 China commercial refrigeration compressor With the rising of people’s living apparent consumption evolvement from 2007 to standards, China refrigeration sector has 2010(10k sets) entered a period of fast development. Since China jointed WTO, many international brands entered China and take high market shares. In 2010 China commercial refrigeration compressor imports showed recovery growth. Brazil, Slovakia, France, Thailand and Germany were the main commercial refrigeration compressor import countries, accounting for 90.46% of the total imports. (Chart 5) The main brands of commercial refrigerator compressor imports were

Tekon, KK, Danfoss, Copeland and Bitzer, Notes: domestic apparent consumption=domestic sales+ etc. Tekon had plants in Brazil. India, imports France and the United States, its plant Source: ChinaIOL in Brazil mainly produced commercial compressor. In 2010 the imports of Tekon commercial refrigeration compressor

50 CEAM - July - 2011 Upstream

dropped slightly year on year, while market demand; Fusheng, Hanbell and got about 95.5%. In order to meet the due to good reputation and excellent Refcomp all has air conditioner and screw rising market demand, from October quality, it still had a foothold in China compressor production lines in China; 2010 Danfoss increased the introduction market. Sanyo imports compressor head then and investment of commercial scroll assembles into complete unit in Dalian compressor production lines to improve Characteristics of Product plant; Refcomp also imports components product competitiveness. It is said that China refrigeration sector then assembles for sale. takes 24% of the whole refrigerating Currently China hermetic recipro- Development Prediction industry, far lower than the proportion of cating compressor sector does not form With the increasing concentration international mature markets, therefore concentrated production scale, mainly and saturating of market capacity of the market potential is huge, especially relying on imports to meet market demand. refrigerator compressor sector, more medium and low temperature refrigeration With the acceleration of enterprise and more compressor enterprises pay equipment market, which has bright nationalization, the imports will decline. attention to commercial refrigeration development prospects in agriculture, In 2009 Danfoss hermetic reciprocating compressor sector; in addition, the rapid fi shery and animal husbandry industries. compressor plant in Tianjin was offi cially development of downstream refrigeration In recent years, the market demand put into operation, which not only sector also stimulated the development of China for commercial refrigeration reduced the imports from Germany, but of commercial refrigeration compressor compressor kept at 1 million to 1.3 million also broke the embarrassing situation of sector. According to the prediction of sets, and the sales of various products all the exports. ChinaIOL on market capacity in the showed degrees of growth. (Chart 6) With small size, light weight, high next fi ve years, the market demand for Semi-hermetic reciprocating comp- effi ciency, low vibration and high reli- commercial refrigeration compressor ress or is the model launched in the market ability, hermetic scroll compressor is will keep rising and change the in the earliest period and still widely used; gradually recognized and accepted in situation of relying on imports to meet therefore it can take nearly half of the refrigeration market. Its cost in middle market demand. The growth of semi- market share in this sector for a long time. and high temperature fi eld has more hermetic screw compressor market will In 2010 this product’ market demand rose advantage over reciprocating unit, but be higher than the average growth of signifi cantly, with sales reaching 95,400 the application rate in shopping malls and this sector, and may take the place of sets, up 25.6% year on year. By good supermarkets of China is obviously lower semi-hermetic reciprocating unit with reputation and excellent quality, foreign than developed countries, therefore its parallel connection of multi-head. It is brands such as Bitzer, Copeland, Sanyo market prospect is broad. In 2010 China expected that in 2015 the annual market and Dorin took relatively high market hermetic scroll compressor apparent sales demand for commercial refrigeration share in China; in 2010 the apparent sales of reached 99,200 sets, up 17% year on compressor in China will reach about 2 Bitzer realized 34,500 sets, accounting for year, and the market share of Copeland million sets. about 36.1% of market share, foll owed by Copeland and Sanyo. The imports of Dorin got the largest, reaching 60%. After years of accumulation and product development, Beifeng, Xuemei, Xueying and other domestic brands have formed strong brand infl uence and market appeal. In recent years, by high reliability, easy operation and maintenance, good balance, adaptability as well as good Chart 7 China commercial refrigeration compressor capacity control, crew compressor has market scale prediction(10k sets) been expanding to medium-capacity market, and began to be widely used in various refrigeration equipments. In 2010 the apparent sales of semi-hermetic screw compressor in China reached 1,700 sets, up 20.5% year on year. Crew compressor sector is technology- intensive, with complicated and highly precise production process. At present the main crew refrigeration compressor brands in domestic market are Bitzer, Fusheng, Hanbell, Refcomp and Sanyo, Source: ChinaIOL etc. The product of Bitzer is totally imported from Germany to meet domestic

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VIP Application is to become a New Trend in Home Appliance Insulation and Refrigeration Field

Vacuum insulation panel (referred to and freezer. The traditional thermal- consumption of refrigerator is to find a as VIP) is the most advanced and efficient protective coating of refrigerator is thermal insulation material with smaller thermal insulation material in the world, polyurethane insulation material with thermal conductivity. (Figure 2) which applies the principle of vacuum actual thermal conductivity within the insulation. Under vacuum condition, range of 0.03 to 0.037 W/ m·k which VIP Structure its thermal conductivity is quite small; is close to the theoretical limit; it is VIP is a kind of plate that puts core therefore it is widely used for refrigeration very difficult to reduce the thermal material with good insulation performance insulation. The main application in home conductivity of polyurethane. Therefore into barrier and seals it after being vacuumed. appliance sector is in refrigerator and one of the key factors of lowering energy It is generally composed­ by barrier, core freezer (Figure 1). insu­lating material and getter. Barrier is like a pocket, which VIP Come into being requires good air retarding abi­ Figure 1 VIP application in refrigerator There are two factors that lity and is strong enough to affect the energy consumption protect vacuum chamber; the core of refrigerator and freezer: insulating material is commonly the first is the refrigeration porous and its primary roles system optimization design; are to support the structure to the second is the thermal avoid collapse and prevent heat insulation performance of radiation; the main function of the box. In the refrigerator getter is to absorb the residual air with particular refrigeration inside VIP to maintain a certain system, the insulation pe­ degree of vacuum. (Figure 3) rf­ormance of the box dire­ 1) The core insulating mat­ ctly affects its energy cons­ ­ erial chooses porous ones, such umption; although increasing as powdered silica, aer­ogels, the thickness of thermal- open-cell polyu­ret­h­ane, etc; it protective coating can save main function is to support the some energy, it increases structure to av­oid contraction the size of refrigerator and and collapse when working for consequently reduces the the internal pressure of VIP is space. As for the thermal generally 0.13~130Pa. insulation materials with 2) This structure can rest­ same thickness, the smaller rain air thermal conduction and the thermal conductivity, thermal convection. Acc­ording the better the insulation to heat transfer theory, when effect. Therefore finding a the aperture of porous core thermal insulation material material and the mean free path with smaller thermal cond­ of air molecules are similar, uctivity becomes the best the thermal conduction and choice for raising insulation thermal convection occurred performance of refrigerator during the collision among air

52 CEAM - July - 2011 Upstream

Figure 2 VIP molecules can be reduced effectively, so is the VIP thermal conductivity. 3) VIP core material itself is porous, so its contact area is relatively small, which can decrease effectively the heat transfer occurred during thermal conduction. 4) VIP is nearly vacuum inside so the main way of heat transfer is heat radiation; therefore when producing the core material, infrared opacifier can be added into the foaming agent to reduce the heat transfer caused by heat radiation. The barrier is mainly for insulating the interior of VIP to maintain vacuum inside. In order to ensure the long-term stability of the thermal insulation of VIP, the barrier has to meet certain requirements on moisture permeability and air per­ meability to prevent the penetration of water vapor, oxygen and nitrogen into the interior and ensure vacuum. In addition, the barrier has to be strong enough to protect the vacuum environment inside from being jeopardized. 5) It can be said that the barrier directly affects the service life of VIP. The getter is a must for the core material itself cannot absorb gas; it generally includes getter and desiccant. The core material and barrier will release gas when used due to the vacuum inside, and the thermal insulation effect and service life will be influenced seriously if not getting rid of the gas.

VIP Advantage

1. Shape Compared with previous foaming materials, VIP boasts a very small the­ rmal conductivity; based on the same thermal insulation effect and using space, the product using VIP has thinner thermal-protective coating, smaller extra- Figure 3 Cross-section structure diagr­am of VIP volume and lighter weight, therefore it is especially suitable for the products with higher requirement on energy saving and structure. In the past VIP was mainly used in the military, marine and medical incubators. Now, with the cost reduction of core insulating material and expansion of mass production scale, VIP has been widely used in refrigerator, freezer, refrigerated truck, cold storage and refrigerated container, etc. In addition, it is also introduced into other fields such as aerospace, food industry and wall insulation. In the near future VIP will

CEAM - July - 2011 53 Upstream probably replace PU as the main thermal Previous and Nowadays Market the thickness of refrigerator’s insulation insulation material used in refrigeration Situation of VIP coating and increase significantly the equipments. VIP technology has been relatively capacity with the volume and energy mature in foreign countries; the refriger­ ­ efficiency level unchanged. In 2010 the 2. Environmental Protection ated truck of Theissen Vacuum Insulation price of VIP reached about 200 Yuan/ A few years ago, PU was widely used Company located in northwestern­ Germany square meter. Currently the price is 120 in thermal insulation field. The foaming used VIP material and the refrigerator to 140 Yuan; with larger production scale, agent used during the production of PU products of some enterprises in Japan, the it can also fall to about 100 Yuan. The can consume ozone in the atmosphere United States and Turkey also applied this material of Super-tech has been used and destroy the global environment, material. VIP can significantly improve successfully by famous home appliance therefore it has been restricted. Currently the thermal insulation and energy-saving enterprises and got high approvals. In cyclopentane and cyclo-isopentane, as effects of refrigerated truck, refrigerator, addition, the export market of VIP has alternative foaming agents, has high freezer and cold storage; in addition, it been opened and nearly 70% of the thermal conductivity so their thermal can also be used in building protection products are exported overseas. The cost insulation effect is not satisfactory; in structure. The research on VIP in China performance of VIP material of domestic addition, these alternatives are in co­ was a little late but has got certain enterprises is much higher than foreign mpliance with environmental prot­ect­ion, results in this field. The application of enterprises. At present the application they consume more energy. Env­ ­i­ronme­ VIP is mainly in the thermal insulation of VIP in China has not been enlarged. ntal protection and energy con­servation structure of refrigerator; for example, The refrigerator enterprises still use the are two major themes in the world today, it has been used in the refrigerator original mold with fixed thickness of so the research and development of products of Haier and Frestech. As for the refrigerator’s wall; only after the new thermal insulation material that is the manufacturers, the production cost enterprises replace the mold by the one eco-friendly and excellent in insulation of VIP is a little higher, but it plays a with thicker wall that the application of performance has been the target all positive role in easing energy shortage. VIP will be wider and wider. Therefore the time and the demand for new eco- The benefit brought by the application of it needs some time for the promotion of friendly and energy efficient thermal VIP in the long run is quite considerable; VIP in home appliance industry of China, insulation material is higher and it is expected that its application will be while the insiders are optimistic on the higher. expanded after the introduction of stricter development of VIP. energy consumption standards. The author also learned that at present 3. Energy Efficiency As for the cost of VIP, in early days, the VIP price of Hongda Fangyuan VIP, as a lighter and thinner thermal its price was a little higher, reaching 400 is about 120Yuan/ton, and its exports insulation material, can save lots of Yuan/square meter; in 2005, the price account for half of the sales. Hongda energy and is pollution-free, recyclable dropped to 320 Yuan/square meter; with Fangyuan supplies to many well-known and mass-produced. In the future, if its mass production in 2009, the price home appliance companies. The price of taking rigid polyurethane foamed by fell to 250 Yuan/square meter. With VIP is mainly affected by glass wool and ordinary cyclopentane as core thermal the large-scale manufacturing of many flame wool, which are the raw materials insulation material, it can be widely enterprises home and abroad, especially of core insulating material and account used in refrigeration equipments such the technical transformation of various for 50% of the cost; while Hongda as refrigerator to further reduce energy sections of the production process, price Fangyuan is manufacturing glass wool, consumption and production cost. It will no longer be the factor that hinders therefore it has certain advantage in cost is a revolutionary alternative thermal the application of VIP. In the future the among others. insulation technology that can be realized price will even drop to about 100 Yuan/ and it conforms to the CFC-free trend. square meter. VIP Future According to the experimental results At present there are two enterprises Research shows that, if the thermal that if using VIP material, household that take VIP as core business in China: conductivity of VIP in the future drops refrigerator can save more than 10% one is Suzhou Hongda Fangyuan, who to 2.5mW/m.K and its price falls to of energy; while based on heat transfer targets the whole industrial chain, from 100 Yuan/square meter, its combined principle, refrigerator and cold storage raw materials to finished products; cost is similar to polyurethane material can save about 20% to 30% of energy another one is Fujian Super-tech, who has and it can be widely used in home using VIP material, which shows that its large investment on VIP. appliance industry. With the continuous economic benefit is considerable. According to the communication development of VIP technology as well In the future the trend of home between the author and the personnel of material science and technology, in the appliances is lighter, thinner, recyclable, Fujian Super-Tech, VIP will be widely near future the manufacturing enterprises energy efficient and is more practical. applied in home appliance industry in can produce various special-shaped The reduction of the energy consumption the future. The advantages of home VIPs, such as round, cylindrical, curved, of these products is significant to the appliances using VIP are very obvious; perforated and notched ones, which will sustainable development of the world. for example, the combined usage of VIP promote its application in more fields and and polyurethane foam will reduce greatly its market expansion.

54 CEAM - July - 2011 Upstream

Created in 1974, Embraco established dominance in the Brazilian refrigerator market by supplying customers with domestically made compressors while competing with expensive imported compressors from abroad. The company was able hold its share of the market and grow, its success was so great that in the 1990’s Embraco began to extend its horizons which led to its extraordinary expansions to Italy, Slovakia ,China and Mexico. With a strong foothold in the hermic compressor market, Embraco employs over 9000 men and women worldwide. Its annual capacity reaches the heights of 30 million compressors, making it a true leader in its sector. The products range from simple electric components to fully completed and integrated cooling systems for household use as well as for commercial use. The quality of the products is what truly matters for Embraco, customer satisfaction is our first priority. With the development of the VCC (Variable Capacity Compressor ) compressors, Embraco is one step closer to achieving its long lasting dream of creating a greener tomorrow. With the development of the VEMC9C series for household use and the VNEK series for commercial use, Embraco has made a significant step in reducing energy consumption with the VCC technology. The traditional on/off compressors also received the upgrade, with the EMD series for household and the EMT series for commercial use, Embraco considerably raised the standards for compressor efficiencies in the market.

Product one: EMD32CLT Category Household Refrigerant R600a Series EMD Model EMD32CLT Volt/Frequency 220~240/50 Displacement 5.96 W 85 Capacity Kcal/h 73.1 performance W/W 2.12 COP kcal/wh 1.82 Height 171

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Product Two:VEMX 9C Speed (rpm) @1200 @1600 @2000 @3000 @4500

Cap. (W) 62.34 85.4 107.3 159.08 221.56

Power (W) 32.98 44 54.74 80.98 122.56

COP (W/W) 1.89 1.94 1.95 1.96 1.81

Noise dB(A) 36 36 36 38 43

Product Three:VNEK609GK Capacity Application Model Volt/Frequency Refrigerant Displacement (cc) Min Max

VNEK 609 GK 560 1130 8.8 M/HBP (6) VNEK 609 GK 450 900 6.2 R-404A VNEK 212 GK 115V 50-60Hz/220V 470 940 12.1 VNEK 206 GK 50-60Hz 230 500 6.2 LBP (2) VNEK 213 GK 440 940 13.5 R-290 VNEK 207 GK 200 470 7.2

Embraco The World Leader of Hermic Compressors

ADD: 29 Yuhua Road, Area B, Beijing Tianzhu Airport Industrial Zone Beijing, China Zip Code: 101312 Tel: +86-010-80482255 Fax:+86-010-80485220 E-mail: [email protected]

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Huangshi Dongbei Mech-Electrical Group Co., Ltd is a As an excellent enterprise in Chinese light industry, one of large-scaled professional coporation in researching, developing, the top 85 skeleton enterprises in hubei province, one of the producing and selling refrigeration compressors. It was established top 50 manufacturers in China, one of the high-tech enterprise in 1966. In 1994, it was reunited to be a group company And now in huangshi and one of the top ten taxpayer, Dongbei group has the group is consisted of 7 share controlling companies, there been awarded many praises, such as national precursor in light are 6000 staffs including 600 technicians. The headquarter was industry, former of spot management in Hubei province, first- located in the scenic spot of the well-known Dongfangshan hill rank civilized unit in Hubei province. Dongbei group is the and it invested two new factories in Wuhu city of Anhui province only enterprise that was awarded in the GEF project for energy- and in Daye of Huangshi city. saving compressors, it was awarded the China Top Brand and The main product of the group is refrigeration compressor; two Top Brand of Hubei province. Since 2005, the capacity of simultaneously, it also researches and produces refrigeration manufacturing and sales of compressor is the top one in domestic equipments such as juice dispenser, ice maker, ice cream machine market in this line, and DONGBEI brand was award as the as well castings, solar energy products and fiber communication most competitive brand in the market by State Department of component. Business.

LH76CY Height :173MM

COP(With Cooling Capacity PTC) Model Power Cooling Attestation Motor Type Motor ASHRAE CECOMAF ASHRAE Displacement Run Capacitior Start Capacitior

hp cm3 -35 -30 -25 -23.3 -20 -15 -10 -25 -23.3 -25 μ F μ F

LH76CY 1/6+ 7.6 S ESCR 90 106 132 140 175 222 293 106 2.00 1.56 2.5 65 VDE

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COP(With Cooling Capacity PTC) Model Power Cooling ASHRAE CECOMAF ASHRAE Attestation Motor Type Motor Displacement Run Capacitior Start Capacitior

hp cm3 -35 -30 -25 -23.3 -20 -15 -10 -25 -23.3 -25 μ F μ F

QD135YU 1/3- 13.5 S RSCR 123 152 187 220 232 282 340 167 1.62 1.26 5 VDE

QD135YU Height :193MM D40CY Height :151mm

Cooling Capacity COP(With PTC) Model Power Cooling Attestation Motor Type Motor ASHRAE CECOMAF ASHRAE Displacement Run Capacitior Start Capacitior

hp cm3 -35 -30 -25 -23.3 -20 -15 -10 -25 -23.3 -25 μ F μ F

D40CY 1/14 4 S RSIR 28 34 43 50 55 70 90 38 0.95 0.74 VDE

Huangshi Dongbei Mech-Electrical Group Co., Ltd

ADD: NO.5 Wuhuang Road,Tieshan,Huangshi,Hubei,China Zip Code: 435006 Tel: +86-0714-5431873 FAX: +86-0714-5420558 E-mail: [email protected]

58 CEAM - July - 2011 Upstream

Jiaxipera Compressor co., Ltd is a manufacturer of env­ Liebherr, Samsung, Toshiba, Beko, Fagor and so on. ironment-friendly, energy-saving and high efficient refrigerator Jiaxipera mainly produces high-efficient and super high- compressor. It is the first national high-technology enterprise, efficient compressors with R600a and R134a refrigerants. It has also the head of China refrigerator compressor industry standard ZB, N, J, T and frequency-variable series with various power revision units and Chinese appliance standard council refrigerator supply system, total 120 models referring products. ZB series compressor standardized working group. are high-efficient compressors with large cooling capacity, It was founded in December, 1988, located in Jiaxing, applied to the large volume, high-end refrigerators like side-by- Zhejiang Province, which has beautiful scenery. With total side and multi-doors refrigerators, etc. Their COP are leading in assets of nearly 3 billion RMB, Jiaxipera right now has 2600 the nation, listed in the national key new product and national staff among whom 400 are specialized technicians in various torch plan by the Ministry of Science and Technology; N-series fields. It has one provincial-level R&D center, one compressor miniaturized and high-efficient compressors are the main research institute and the annual capacity is more than 18 million products of the company, the highest COP can reach 2.05W/W, units. having good matching performance with the refrigerators and are In the past 20 years, Jiaxipera has always followed the widely used in the environment-friendly, energy-saving and high business principle of “Responsible for staff, Responsible for efficient refrigerator market. T-series compact compressors are enterprise, Responsible for society”, adhered to the management the new generation of miniaturization products released at the concept of “people-oriented, sincere development, advanced end of 2010, with the advantage of light weight, small volume, technology, global competition”. With its superior quality and efficiency, low noise, high reliability and so on, meeting the need excellent service, it has won high reputation from the customers. of 250 liters or less than 250 liters energy-saving refrigerators. The products sell well both at home and abroad. Jiaxipera has R600 DC frequency-variable compressors fill up the blank established good cooperative partnership relations with famous of domestic technology, having the advantage of wide range refrigerator companies both at home and abroad, like Haier, refrigerating capacity and high efficiency, among which the COP Hisense, Midea, Meiling, Frestech, BSH, Electrolux, Indesit, of VN-Y series has reached the international advanced level.

Jiaxipera Compressor co., Ltd

ADD: No.588,Yazhong Road, Jiaxing,Zhejiang Zip Code: 314006 Tel: +86-0573-8586166 Fax: +86-0573-82586181 E-mail: [email protected]

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Introduction of Bitzer China Bitzer has two companies in China—Bitzer Compressors (Beijing) Ltd (BCB) and Bitzer Refrigeration Technology (China) Co., Ltd (BRT). Bitzer Compressors (Beijing) Ltd. (BCB) is a wholly-owned subsidiary established in 2001. Products include semi-hermetic screw compressor. It is expected that screw assembling line will be transferred to Bitzer Refrigeration Technology (China) Co., Ltd (BRT) in September 2007. Then BCB will be machining workshop providing housing for BBR and BRT. Bitzer Refrigeration Technology (China) Co., Ltd (BRT) is a wholly-owned company established in 2005. Its first investment reaches up to 22 million Euros. Products include semi-reciprocating compressor and transportation AC compressor. “Made by Bitzer” is not only the quality standard Bitzer Group maintains worldwide, but also the key reason why Bitzer is a big success. By doing so, users in China even Asia-Pacific can enjoy high-performance Bitzer products at sound prices. During China Refrigeration 2007 in Guangzhou, Refrigeration compressor, AC compressor and Transportation AC compressor were all shown here. Besides, three technical seminars were held, regarding Bitzer semi-hermetic screw compressors, Bitzer Semi-Hermetic Compact Screw-CSW Series and Bitzer reciprocating compressors. This fair provided a good chance for Bitzer to communicate with customers and yielded good results.

Bitzer China information

Bitzer Refrigeration Technology Bitzer Refrigeration Equipment Bitzer Compressors (Beijing) (China) Co., Ltd. (BRT) Co. Ltd. Beijing (BBR) Ltd. (BCB)

ADD: No.20, Fouth Road of Jinghai, ADD: No. 23, Ban Bi Dian Street ADD: Guang Yuan Dong Street Beijing Economic&Technological Tongzhou District Tongzhou Industrial Development Zone Development Area Zip Code: 101149 Zip Code: 101113 Zip Code: 100023 Tel.: +86-010-81566313 Tel.: +86-010-67819000 Tel.: +86-010-67819000 Fax: +86-010-81563369 Fax: +86-010-67819002 Fax: +86-010-67819002 Http://www.bitzer.net.cn Http://www.bitzer.com.cn Http://www.bitzer.net.cn E-mail: [email protected] E-mail: [email protected] E-mail: [email protected]

60 CEAM - July - 2011