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Contents April 2011

Air Conditioner

8 Household Air Conditioner 13 Residential Central Air Conditioner 17 Water Chilling Unit 21 Heat Pump Water Heater 25 Midea 28 GREE 32 Haier 33 CHIGO 35 Galanz 37 AUX 38 Hisense 40 TCL

Compressor

43 Rotary Compressor 47 Scroll Compressor 50 GMCC 52 HIGHLY 53 RECHI PRECISION 54 QINGAN REFRIGERATION P 21 Heat Pump Water Heater

Air Conditioner Motor

57 Air Conditioner Motor 59 Welling 60 SINJUN 62 Regal-Beloit Sinya

Index of Advertisements Refrigerant

65 R22 (HCFC-22) Inserted Front: Midea P3: Yonghe 67 R410A (R125, R32) Inside Back Cover: Haier P5: HIGHLY (HFC-125, HFC-32) Back Cover: Welling P6: ChinaIOL 70 DONGYUE Title Page: GMCC P41: Hisense 72 JUHUA

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Chief Editor: Jie Yang

Associate Editor: Lizhe Zhang

Editor/ Reporter(AC):

Xiaofang Suo Xiaolan Fan Zheng Sun Yinghan Wang

Editor/ Reporter(HVAC):

Yanfang Yu Liyun Kong Run Yang

Editor/ Reporter(Upstream):

Jinhua Zhang Yuxin Pang Dan Shan

Editor/ Reporter(Refrigeration):

Ping Yang Wenjia Song Juan Wang Jie Wei

Editor/ Reporter(Household Appliance):

Xi Wang Ling Zhang Qin Liu

Art Editor: Yang Zhou

Edition and Publishment: China Electric Appliance Manufacturer

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Issue Date: 18th of each month

Price: 5$

PART1: AC & HPWH

Household Air Conditioner Residential Central Air Conditioner Water Chilling Unit Heat Pump Water Heater

Main Manufacturers Air Conditioner

Household Air Conditioner

Production Capacity With the issue of a series of policies conditioner. China household air conditioner pr- such as “Energy-saving and Benefi ting The factors such as weather, policy oduction capacity in 2010 reached about to the People”, the production resources and economy stimulated the demand for 140 million units, accounting for 75% of of China air conditioner enterprises air conditioner from home and abroad. the global capacity. (Chart 1) grow tighter and tighter. In addition, the The output of twelve China domestic Due to various reasons such as enterprises also need to put more efforts household air conditioner manufacturers transportation, resources, economy and on developing new products with higher monitored by ChinaIOL increased by 30% human resources, the household air energy effi ciency, such as inverter air to 70% year on year, including ten with conditioner production bases in China mainly concentrates in the Pearl River Delta and Yangtze River Delta. While in the recent years because of the industrial economy orientation, labor costs and other Chart 1 China household air conditioner production factors, the production capacity originally capacity distribution in 2010 (%) concentrated in the East begins to move to the central and western regions where the supporting facilities are gradually completed, especially Anhui province, where Hefei and Wuhu are hot spots. With the recovery of global economy, the overseas expansion of Chinese air conditioner enterprises started once more. In 2010, Midea and Gree set up air conditioner production bases in Vietnam; afterward Midea acquired an air conditioner plant in Egypt. Besides increasing capacity overseas, China air conditioner enterprises also put more Source:ChinaIOL effort on building their own brands. In China, Midea and Gree will continue Chart 3 China household air conditioner production to expand; the production base of Aux and sales evolvement from 2006 to 2010 (10k units) in Tianjin will start operation, and the production base of Chigo in Zhengzhou 10000 is also scheduled. (Chart 2/3) 8000

6000 Production and Sales 4000 From 2006 to 2009, the production and sales of China household air 2000 conditioner wandered around 60 million 0 units. In 2010, the scale achieved a historic 2006 2007 2008 2009 2010 breakthrough, with both production and Production Sales sales exceeding 90 million units, up more than 50% and 40% year on year Source:ChinaIOL respectively.

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Chart 2 China household air conditioner production capacity detailed distribution in 2010(10k units)

Production Enterprise China Overseas Capacity Zhuhai Hefei Chongqing Brazil Pakistan Viet Nam Gree 2660

Shunde Wuhu Wuhan Panyu Viet Nam Midea 2370

Jiaonan Hefei Dalian Chongqing Wuhan Viet Nam Haier 1230

Foshan Zhengzhou Chigo 1030

Ningbo Nanchang Tianjin Aux Chengdu 850

Shunde Qingdao Huzhou Hisense-Kelon 800 China Zhongshan Galanz 650

Taizhou Chunlan 500

Zhongshan Wuhan TCL 450

Mianyang Zhongshan Indonesia Changhong 365

Changzhou Nigeria Shinco 350

Wenzhou Yuetu 300

Panyu Panasonic 400

Shanghai Fujitsu 200

Shanghai Thailand Sharp 200

Mitsubishi Shanghai 100 Electric Japan Foshan Shenyang Sanyo 120

Wuhu Shanghai Hitachi 110 Mitsubishi Jiangmen Heavy 60 Industries Shanghai Daikin 50

Tianjin Korea …… LG 1490

Suzhou Korea …… Korea Samsung 1000

Tianjin Daewoo 100

Shenzhen Europe Airwell 80

Total 15465

Source:ChinaIOL

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50% increase. The output growth rate of domestic brands was higher than that of Chart 4 Proportion between China air conditioner do- foreign-invested ones; the output of Gree mestic sales and exports from 2006 to 2010(10k units) and Midea all exceeded 25 million units, with combined output accounting for 10000 53% of the total, which showed obvious advantages. (Chart 4) 8000 The statistics showed that in 2009 6000 the domestic sales of China household air conditioner in the fi rst time exceeded 4000 exports; in 2010 the domestic sales 2000 exceeded more than 50 million units over exports. Factors such as weather, policy 0 2006 2007 2008 2009 2010 and economy stimulated the demand

Domestic Sales Exports from domestic market and enhance the business expectations of air conditioner Source:ChinaIOL enterprises. In 2010, Gree and Midea all scored some achievements in the air conditioner market; Gree led in the domestic market Chart 5 China household air conditioner export trend while Midea’s performance in exports from 2006-2010(10k units) was in no match; Chigo, Aux and Galanz followed closely to the national policy, 6000 stepping up research and development on high effi ciency products such as inverter ones, and they also performed well in 4000 export market. The foreign-invested brands mainly focused on high-end 2000 market in China; as the production base of overseas exports, their developments were relatively stable. Facing fi erce 0 2006 2007 2008 2009 2010 competitions in China domestic market, the foreign-invested brands must intensify Exports efforts on the development and promotion of inverter air conditioner to join the Source:China Customs competition; or they can give up China Notes:HS codes include:84151010/84151021/84151022/84158110 domestic market to focus on overseas /84158120/84158210/84158220/84158300, similarly hereinafter. market.

Exports

Affected by the global economic Chart 6 China household air conditioner exports by continent from 2009 to crisis in 2009, China household air 2010 conditioner exports declined signifi cantly. In 2010, due to the hot weather, economic Continent 2010 Proportion Y-O-Y 2009 Proportion recovery and low channel inventory, the (10k units) (10k units) exports rebounded sharply, exceeding 40 Asia 1589 37.50% 54.16% 1031 36.97% million units, more than that in 2006 to 2008. (Chart 6) Latin 976 23.02% 103.31% 480 17.21% America In 2010, China household air con- North America 706 16.66% 6.28% 664 23.83% ditioner exports to the fi ve continents Europe 561 13.23% 78.35% 314 11.27% all recovered, among which the exports to Latin America doubled, the exports Africa 323 7.61% 44.98% 223 7.98% to Europe and Asia increased by more Oceania 84 1.98% 10.48% 76 2.73% than 50%, and the exports to Africa also increased by nearly 45%. Total 4238 100.00% 52.02% 2788 100.00% Signifi cant recovery showed in major Source:China Customs markets, and emerging markets continued

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to grow, all of which were the main fi xed frequency ones, therefore it has conditioner with high energy effi ciency characteristics of China household air been marginalized by the market for more and inverter air conditioner took the conditioner exports in 2010. The growth than ten years. (Chart 7/8) market and performed outstandingly in of Latin America was mainly stimulated The implementation of China inver- China domestic market. by Brazil, Argentina and Mexico; the ter air conditioner national standard According to the statistics of China- substantial growth in Asian market on from 1st September of 2008 ended the IOL, in 2010 China inverter air conditioner one hand was due to the recovery speed embarrassing situation of inverter air sales totaled 16.44 million units, up 104% of Asian economy being faster than that conditioner energy-effi ciency level year on year, nearly all of which were DC of Europe and America, one the other without basis to follow. Midea started inverter air conditioner. 69% of inverter hand was because that Asia has the largest to change strategy fi rst to seize inverter air conditioner produced in China was population in the world therefore its air air conditioner market, and Hisense, sold in domestic market, and 31% was conditioner market has huge potential; Gree and other enterprises followed for exports. The growth of exports kept the exports to Africa reached a new afterwards. stable, with about 20% of annual growth record high, and showed long term of In 2009, the rising of access threshold rate. The sales in domestic market showed growth room. for fi xed frequency energy effi ciency rapid growth, nearly doubled in 2010. The The competition around China ho- brought a huge product transformation sales of Midea inverter air conditioner u seh old air conditioner exports is reform—the fi xed frequency air reached 4.61 million units, accounting for very fi erce. In 2010, the top fi ve air conditioner with low energy effi ciency 28% of the total market share, the No.1 in conditioners enterprises according to the and most market share was forced out of the industry; Gree, Panasonic and Haier exports accounted for 60% of the total the market by policies; fi xed frequency air followed afterwards. exports, including three domestic brands and two foreign-invested ones. The export growth of Fujitsu was mainly from the air conditioner selling back to Japan; it moved a large part of air conditioner Chart 7 China inverter air conditioner developments production from Japan to China, and from 2009 to 2010(10k units) then sold the products back to Japan. The export increase of Gree was impressive, doubled year on year in 2010. Other ones besides Gree and Midea also found more development room in the recovery of global economy; the market share of some second or third tier brands in some regions even exceeded fi rst tier brands. In the aspect of exports to the continents, Midea was the winner in North America, Latin America and Europe; Gree performed impressively in Asia; Chigo was the leader in Middle East, and Galanz Source:ChinaIOL ranked No.1 in Africa.

Characteristics of Product Chart 8 China inverter air conditioner sales proportions in 2010(10k units) Inverter Air conditioner

Before 2009, China inverter conditio- 10000 ner mainly was for exports, more than 8000 70% to Japan, Europe, etc; the enterprises producing this kind of product were 6000 mainly Japanese-invested, among China 4000 domestic brands, only Hisense had some 2000 exports. The demand from overseas was relatively narrow, and the overseas market 0 reached high degree of maturity, therefore Sales Domestic Exports Sales China inverter air conditioner production scale grew slowly. In China domestic Inverter Fixed Frequency market, due to high costs and high price, inverter air conditioner product has Source:ChinaIOL absolute disadvantages compared with

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New Refrigerant Air Conditioner refrigerant air conditioner and inverter air R-410A has formed certain scale. As For China household air conditioner conditioner. (Chart 9) R290 natural refrigerant, air conditioner mainly uses R-22 as refrigerant. In 2010, Currently, the inverter air conditioner enterprises have been researching and 70% of China household air conditioner production of China enterprises is developing the technology. There are only used R-22 refrigerant, and the rest 30% relatively large, and the product export small amount of R290 air conditioner used R-410A. The number of R-410A scale to North America is also large, products; Gree has a production line for air conditioner tripled compared with therefore, the new refrigerant air con- R290 air conditioner, and a few products the last two years; the reasons for the ditioner products of other enterprises are exported to Europe. growth are as following: the fi rst, the will increase more. In the aspect of new In June 2009 China started to scale of DC inverter air conditioner refrigerant product of various enterprises, implement the project of “Energy-saving production expanded, and nearly all Midea, Gree and Haier have the largest and Benefi ting to the People”, therefore of them used R-410A; the second, the number of this kind of products. the energy effi ciency upgrade of China usage of new refrigerant among fi xed R-410A air conditioner has unique air conditioner accelerated. In May 2010, frequency air conditioner also increased advantages in improving energy effi cie- air conditioner with more than the second substantially. From 1st January of 2010, ncy and environmental protection, there- level of energy effi ciency had taken United States banned the imports of air fore, most air conditioner enterprises nearly half the market, especially those conditioner with R-22 as refrigerant, have started the match between fi xed with second level of energy effi ciency. therefore, the exports of new refrigerant frequency air conditioner and R-410A With the rising of the energy effi ciency air conditioner in 2010 greatly enhanced. refrigerant from 2010. standard once more, the air conditioner The recovery of European economy and In the recent years, the refrigerant with the fi rst level of energy effi ciency relative stability of Japanese market have alternative direction has been a hot spot in was launched on the market in June created opportunity for the exports of new the industry. Currently the production of 2010, which was originally slow in transformation speed, and in that month the shipment of the new product reached 5%. Overall, in 2010 China household fi xed frequency air conditioner with second level of energy effi ciency was Chart 9 China household new refrige rant air conditioner the main force in the market; driven by development from 2008 to 2010(10k units) “Household Appliance Going to the Countryside” policy, the product with 12000 the third level of energy effi ciency had a 10000 signifi cant advantage. 8000 The reasons that high effi ciency 6000 energy-saving household air conditioner

4000 achieved such rapid development in China market are as following: fi rst, the national 2000 policy guidance; second, the positive 0 response from domestic enterprises; third, 2008 2009 2010 the lower and lower price of energy- R-22 R-410A R-407C saving air conditioner product; the fourth, the more rational consumption of the Source:ChinaIOL customers.

Chart 10 China household air conditioner market scale Development Prediction prediction (10k units) According to the prediction of the market capacity for the next fi ve years 14000 by ChinaIOL, in a longer period of time 12000 in the future, the development trend of 10000 China air conditioner industry will tend 8000

6000 to be stable; although it does not rule 4000 out call-back situation in certain year, 2000 the basic direction is continuous growth. 0 The inverter air conditioner will continue 2010 2011 2012 2013 2014 2015 to expand, and in 2015 the inverter air Exports Domestic Sales conditioner capacity of China domestic market is expected to reach 50%. (Chart Source:ChinaIOL 10)

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Residential Central Air Conditioner

Industrial Layout Chart 1 China residential centr al air conditioner With economic development an d ri- industrial layout in 2010 (according to the distribution s i ng c o n sumption level, China resident- of output value) ial central air conditioner sector boomed, changing into an essential air conditioning equipment of buildings from “luxury” 1%3% item. From 2004 to 2008, the sales of China residential air conditioner realized 10% to 20% of growth. The huge consumer 42% 54% demand as well as local preferential investment conditions attracted older residential central air conditioner ent- erpri ses of USA, Japan and Korea to set East China South China North China Others up plants in China, and got main market share in China residential central air Source:ChinaIOL

Chart 2 China residential central air conditioner enterprises production bases distribution

Enterprise/Production Base East China South China North China Others Chigo Foshan Tsinghua Tongfang Wuxi Beijing Midea Shunde China Haier Qingdao Gree Zhuhai Aux Ningbo Panasonic Guangzhou Sanyo Dalian Mitsubishi Heavy Industries-Haier Qingdao Mitsubishi Heavy Industries Qingdao Japan Mitsubishi Electric Shanghai Hisense-Hitachi Qingdao Fujitsu Wuxi Toshiba Shanghai Guangzhou Daikin Shanghai York Guangzhou USA Trane Taicang Zhongshan McQuay Shenzhen Samsung Suzhou Korea LG Tianjin

Source:ChinaIOL

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conditioner market. (Chart 1/2) In the aspect of output value dis- Chart 3 China residential central air conditioner market tribution, enterprises with large sales scale from 2006 to 2010(Unit: 0.1 billion RMB) scale such as Daikin, Hisense-Hitachi, Mitsubishi Electric and Mitsubishi Heavy Industries-Haier all have built plants in 300 East China, which makes the distribution scale of output value in this region 200 exceeding other regions; South China owns plants of Midea, Gree, York and

100 McQuay, with output value of residential central air conditioner only second to that of East China; Only LG and Tsinghua 0 Tongfang have production bases in 2006 2007 2008 2009 2010 North China, and the output value and Sales Amount production capacity of the two enterprises are all relatively small. Source:ChinaIOL China residential central air conditio- ner enterprises are originally evolved from main household air conditioner enterprises, and Midea, Gree, Haier and Chart 4 China residential central air conditioner Chigo still are the main forces for the domestic sales and export from 2006 to 2010(Unit: 0.1 development of residential central air billion RMB) conditioner. Besides, Tsinghua Tongfang, as one of the enterprises with the most 300 comprehensive strength in China arti- fi cial environment fi eld, owns not only production base of residential central air 200 conditioner, but also production base of central air conditioner (Beijing) and gas 100 air conditioner (Langfang).

Production and Sales 0 During the fi ve years from 2006 to 2006 2007 2008 2009 2010 2010, the market sales of China residential Domestic Sales Exports central air conditioner basically kept about Source:ChinaIOL 30% of growth. Affected by the fi nancial crisis and economic slowdown in 2008 and 2009, this growth rate narrowed and even dropped slightly. (Chart 3/4) Market demand, enterprise promotion Chart 5 China residential central air conditioner export and consumer recognition are essential amount from 2006 to 2010(Unit: 0.1 billion RMB) for the residential central air conditioner development. In 2010, when the en-

50 terprise, product and consumer have become mature, the market demand 40 became the decisive factor for the 30 development of this product under the infl uence of macroeconomic situation. 20 After a slight decline in 2009, China 10 residential central air conditioner sector rebounded, recovered and even showed 0 growth under new momentum in 2010, 2006 2007 2008 2009 2010 with sales amount up 28% year on year, Export Amount exceeding that in 2008. Source:China Customs China domestic market is the main battlefi eld for residential central air conditioner; its domestic sales keep

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arount 88%, while the exports only account for 12%. In China residential central air conditioner market, foreign- invested brands take most of the market Chart 6 China residential central air conditioner share, and domestic enterprises only export statistics by type (Unit: 0.1 billion RMB) take about 32%, which in 2010 rose by

4 percentage points. The sales of the top 50 fi ve residential central air conditioner enterprises in China domestic market 40 accounted for more than 60% of the total 30 sales, and this proportion rose year on 20 year in the recent fi ve years; in 2010 this proportion reached 68%, including three 10 domestic enterprises and two Japanese- 0 invested ones. The Japanese-invested 2008 2009 2010 enterprises had slight advantage; Midea, Roof Unit Ducted Unit VRF Gree and Haier all achieved substantial growth in 2010, especially Gree. Source:ChinaIOL

Exports The proportion of China residential central air conditioner exports accounted Chart 7 China residential central air conditioner for 12% of the total sales, basically sales amount by product from 2006 to 2010(Unit: keeping at around 3 billion Yuan. The 0.1 billion RMB) exports reached a peak in 2007 and 2008; although resuming rapid growth in 2010, the exports did not reach historic record. 300 In 2010, exports and domestic sales kept 250 the same growth rate. (Chart5) 200

Domestic and Japanese-invested 150 en t e rp ris es are the main force of resi- 100 dential central air conditioner exports. The exports of domestic enterprises 50 account for 75%; Midea, Gree and Haier 0 are three largest domestic enterprises for 2006 2007 2008 2009 2010 residential central air conditioner exports, Roof Unit Ducted Unit VRF Residential Water System with export distribution rate of 60% to Source:ChinaIOL 70%. (Chart6) Multi-split unit, roof unit and ducted unit take nearly the same shares in exports, with multi-split unit being slightly more prominent. The exports of domestic residential central air conditioner mainly Chart 8 VRF sales amount by category from 2008 to are OEM. Facing fi erce competition in 2010(Unit: 0.1 billion RMB) domestic market, China residential central air conditioner enterprises will continue 200 to put attention on overseas market. 150 Characteristics of Product Multi-split unit is the main type of 100 China residential central air conditioner. 50 From 2006 to 2010, the market share of multi-split unit has been keeping more 0 than 50%, and increased year on year; 2008 2009 2010 in 2010 the market share of Multi-split Inverter Digital Fixed Frequency unit exceeded 60%. (Chart7) The market share of unit residential Source:ChinaIOL central air conditioner including roof

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unit and ducted units kept stable, about China residential central air conditioner pressure to small brands. The positioning 1/3 of the total in fi ve years. Residential are Midea, Gree and Haier; the sales of of domestic brands is relatively weak water system (including residential water TCL, Aux and Tsinghua Tongfang cannot compared with Japanese-invested ones; unit and small module water chiller) is match the three giants. Japanese-invested their sales are found among construction highly comfortable to use, but has very brands, including Daikin, Mitsubishi project, retail, large scale chain project, high requirement for design, installment Electric, Mitsubishi Heavy Industries, as well as normal household, commercial and maintenance; in addition, this kind Hisense-Hitachi, Toshiba, Panasonic, and even industrial site. Besides, since of product is more complicated than Fujitsu and Mitsubishi Heavy Industries- 2009 domestic brands began to actively multi-split unit and unit air conditioner, Haier, have kept stable development; join in the government procurement list and its price lacks of competition, their target sales area is obviously China or “Energy-saving and Benefi ting to the therefore among the fi erce competition of domestic market, remaining around 45% People” project list, as well as responding residential central air conditioner sector, of market share which slightly dropped positively to the policy on energy its market share dropped signifi cantly. in 2010 due to the strong development of effi ciency label, which offered a strong Overall, the energy effi ciency of unit China domestic brands. LG and Samsung, guarantee for their products selling to the residential central conditioner and multi- as two major Korean-invested brands, are government projects. split unit is relatively high. Enterprises large corporation enterprises; residential Japanese residential central air con- put more effort on the research and central air conditioner is only one of their ditioner brands show pyramid pattern, development of multi-split unit, therefore business departments and it is not the with Daikin at the top, Hisense-Hitachi this kind of product has high energy most advantaged, therefore it gets limited in the second place, and the rest follow. effi ciency. The energy effi ciency of unit attention within the corporation, which The style of product, technology and sales residential central air conditioner is has affected its development. American- of Japanese-invested brands is the same, relatively low, and there is huge disparity invested brands, represented by York, and the competition among them is very of energy effi ciency level of the products Carrier, Trane and McQuay, mainly fi erce. Residential water unit, ducted unit of enterprise itself as well as among other promote residential water system; due and digital Multi-split unit are the mainly ones. At present residential water system to the limitation of the product itself, its products of American-invested brands. lacks the appropriate national standard market share is relatively small. Residential water unit sales in the current and management system of energy The market of China residential China market is unsustainable; with the effi ciency, coupled with the insignifi cant central air conditioner is polarized: Midea, shrinking of its market scale, consumer energy saving effect of the product itself, Gree and Haier take 80% of the overall awareness of this kind of product does not it cannot even be listed for the tender market share of domestic brands by virtue increase. Small air cooling water unit and when project of the government and of their scale advantages and extensive ducted unit have some potential in China party A has some requirements. With distribution channels, and this proportion domestic market. The development of the energy effi ciency labeling system has been growing with the expansion of digital Multi-split unit is plain and there further stipulating the production and the enterprises, which has caused great is no major growth. usage of energy saving air conditioner product in China, this system also puts restriction on the product that is not signifi cant in energy saving or not energy saving. (Chart8) More than 80% of multi-split unit are inverter ones and the proportion has Chart 9 China residential central air conditioner brand increased year by year, with more than classifi cation in 2010 85% in 2010. The proportion of digital Multi-split unit was relatively stable, basically around 12% in three years. The 2% 5% proportion of fi xed frequency multi-split 6% unit has dropped year on year, less than 41% 3% in 2010.

Characteristics of Brand 46% Statistics for 2010 still showed that in Chinese-Invested Japanese-invested China residential central air conditioner American-invested Korean-invested market Japanese-invested brands took Others the most of market shares, while the gap between domestic brands and Japanese- invested ones was shrinking gradually. Source:ChinaIOL (Chart9) The largest domestic brands in

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Water Chilling Unit

Production Distribution The development of water chilling central air conditioner sector. Among Stable economic development and unit is affected by the fast growth of small and middle scale projects even government’s investment on transporta- sales of residential central air conditioner. some large ones, water chilling unit and tion, education, health care and infrastruc- Residential central air conditioner, esp- residential central air conditioner carry ture have promoted the development of ecially VRF, is applied in the tra ditional out fi erce competition. China water chilling unit sector. In 2010 education and research facility, medial the sales of China water chilling unit industry, hotel, plant, as well as offi ce Production and Sales reached about 20 billion Yuan, and the building, and it takes certain market share. In the past fi ve years, the sales of manufacturers mainly concentrated in While the booming real estate market China water chilling unit kept growth East China (including Zhejiang, Shanghai, becomes a huge cake for residential rate of 14% to 15%; in 2010 the sales Shandong, etc) as well as South China (mainly Guangdong). (Chart1/2) China water chilling unit enterprises can be divided into American-invested Chart 1 China water chilling unit production base brands, domestic ones and Japanese- distribution (according to the sales amount of invested ones. And the overall pattern is enterprises) basically stable. There are a lot of domestic brands, including Midea, Gree, Haier, Chigo, Galanz, TCL and Aux which are developed from household air conditioner enterprises, as well as original state-owned large central air conditioner enterprises and private central air conditioner ones that develops aftermath. With several years of development, domestic brands occupy an important position in China water chilling unit market, accounting for 27% of the market share. American- Source:ChinaIOL invested water chilling unit enterprises developed in early stage show advantages in China market, accounting for more Chart 3 China water chilling unit market scale from than 50% of the market share. 2006 to 2010 (Unit: 0.1 billion RMB) After several years of development, the product structure of China water 250 chilling unit sector has been mature, 200 with rare new products. Some enterprises upgrade the technology of the existing 150 products, or supplement their production 100 lines. In addition, the diversifi cation of the application of this kind of product 50 is more and more apparent, such as ice 0 cooling storage, water source heat pump, 2006 2007 2008 2009 2010 special unit for nuclear power and waste Sales Amount heat recovery unit, and the sales aim to meet various demands. Source:ChinaIOL

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Chart 2 China water chilling unit enterprise production base distributions

Brand East China South China North China Others Aux Ningbo,Zhejiang DunAn Zhuji,Zhejiang Gree Zhuhai,Guangdong Guoxiang Shangyu, Shanghai/Zhejiang Haier Qingdao,Shandong Jirong Jieyang, Guangdong Chinese-invested Midea Shunde,Shandong Chongqing Tsing Tongfang Wuxi,Jiangsu Beijing Shenling Foshan, Shandong Shuangliang Jiangyin, Jiangsu Tica Nanjing, Jiangsu Broad Changsha, Hunan Chigo Foshan, Shandong Taiwanese-invested Kunlin Shanghai Daikin Shanghai Ebara Yantai, Shandong Japanese-invested Hitachi Guangzhou, Guangdong Sanyo Dalian, Liaoning Sinko Shanghai Dunhan-Bush Yantai, Shandong Carrier Shanghai American-invested McQuay Shenzhen,Guangdong Wuhan, Hubei Trane Taicang, Jiangsu York Wuxi,Jiangsu Guangzhou, Guangdong Korean-invested LS Qingdao,Shandong

Source:ChinaIOL

amount reached nearly 20 billion Yuan. project of large water chilling unit was advantages. (Chart3/4) long in time, which had high requirement China water chilling unit enterprises The central air conditioner product in on the capital capacity of the dealers manly target domestic market, account­ China market is divided into large water and technology support of the central air ing for 30% of the domestic market share, chilling unit and residential central air conditioner enterprises. while exports only account for 12% of the conditioner (not including CRAC, water The impact of macroeconomic total sales. In the past two years domestic chilling cabinet unit, roof unit, clean situation is huge on the ups and downs of brands have kept fast development, air conditioner, and some professional water chilling unit market. The financial reaching 39% of growth rate in 2010, GSHP) by ChinaIOL. According to the crisis from the end of 2008 to 2009 caused higher than that of the general domestic sales performance of the two categories the shrink or delay of market demand for sales of the sector. Among domestic of products in China market in the past water chilling unit, especially the decrease brands, Tica of Nanjing grew rapidly, several years, the market potential of of large project affected deeply to the with sales amount ranking No.1; Midea residential central air conditioner was sales of centrifugal unit and screw unit. and Gree also developed fast, doubled further explored; its application area In addition, the target market of water year on year; the sales of Shenling, Jirong was expanded, sales rose steadily, and chilling unit was under the influence and DunAn also realized high growth. its proportion in the overall central air from residential central air conditioner conditioner market increased, thanks to in a certain range. In various projects Exports the active expansion of the sales channel. such as sport center, air port, railway The export proportion of China Channel expansion did not work for water transportation hub, workshop and plants, water chilling unit accounted for 12% chilling unit. The target construction water chilling unit had irreplaceable of the total sales, with amount keeping

18 CEAM - April - 2011 Air Conditioner

at 2 billion to 3 billion Yuan. From water chilling unit was also growing. application of VRF and scroll module 2007 to 2010, the exports declined once Scroll type/piston type, absorption type unit in small and middle offi ce building affected by overseas economic situation, and air conditioner terminal also kept projects continued to increase, and rebounded in 2010, but not back to the stable development. (Chart7) extended to hospital, large and middle previous level.(Chart5) The competition of central air scale commercial building and offi ce In the aspect of water chilling unit conditioner market is very fi erce. The building, which divided the demand for enterprise, the plants of the four large foreign-invested brands (York, Carrier, Trane and McQuay) in China mainly meet the demand from the mainland, Hong Kong, Macao, Taiwan and Asia; in Chart 4 China water chilling unit domestic sales and addition, Europe, America and Australia exports from 2006 to 2010(Unit: 0.1 billion RMB) are also the main export regions. The exports of Carrier to India and Hong Kong have reached the most; McQuay mainly 250 exports to Italy, India, Hong Kong, etc; 200 Singapore, India and UAE are the main 150 export countries of York; Trance mainly exports to Malaysia, India, etc. As for 100 absorption water cooling unit enterprises, 50 the export business can expand to lots of countries; except Asia, Europe and 0 America, Middle Eastern countries had 2006 2007 2008 2009 2010 energy advantages, where the energy Domestic Sales Exports saving effect of absorption water chilling unit is more visible. Source:ChinaIOL Facing with overseas orders with relative high profi ts, lack of capacity, technology and export channels all signify Chart 5 China water chilling unit export amount from the weak export competitiveness of 2007 to 2010 (Unit: 0.1 billion RMB) domestic water chilling unit enterprises. 30 At present the main domestic enterprises of water chilling unit exports are Broad, Shuangliang, Midea and Tica. In 2010, 20 the exports of Shuangliang and Midea realized outstanding growth. India, 10 Malaysia, Singapore and Hong Kong were the largest consumption regions of China water chilling unit. (Chart6) 0 The export product of China water 2007 2008 2009 2010 chilling unit sector is mainly centrifugal Exports chiller, with York, Carrier, Trance and McQuay as representative enterprises; Source:ChinaIOL Broad and Shuangliang mainly export absorption water chilling unit; Midea and Chart 6 China water chilling unit export product Tica have some exports of air conditioner structure in 2010 terminal unit; in addition, Midea also has some exports of screw unit.

Product and Brand Since 2005 Screw water chilling unit, by its own advantages and promotion of the enterprises, gradually became the mainstay among China large water chilling unit market. As the host device of GSHP, screw water chilling unit stimulated the sales of the complete unit in the last two Source:ChinaIOL years. Besides, the market of centrifugal

CEAM - April - 2011 19 Air Conditioner

screw water chilling unit. screw unit for other small water chilling of product is highly fl exible and has huge Screw water chilling unit is divided units. Among domestic brands, Midea development potential. In 2010 Midea into air cooling screw unit and water and Tica were outstanding in screw water and Gree realized the fastest growth; Tica cooling screw unit. The application of chilling unit sector; Midea’s performance kept high sales amount; other domestic water cooling scroll unit is diversifi ed increased signifi cantly, ranking No.1 brands also sold this category of product, and elaborated; air cooling screw unit is among domestic brands in 2010; Tica such as Tsinghua Tongfang, Aux, Chigo, generally applicable; the performance of began to stand out in 2009. Shuangliang, Tica, DunAn, Guoxiang, air cooling screw unit is weak. There are The pattern of absorption water Jirong, Shenling, etc. 78% of water cooling unit among screw chilling unit enterprises is relatively Air conditioner terminal product water chilling unit sector. At present the fi xed; the main enterprises include Broad, includes package air handling units, evaporator generally used in water cooling Shuangliang, Ebara, Carrier, Sanyo, LS, commonly known as air conditioning screw unit is divided into three categories: Hitachi, Tongfang Kawasaki and Shenlan tank, and fan coil unit (not including new fl ooded type, dry type and falling film of Sichuan, nearly all of which have air unit). This kind of product is essential, type. Flooded evaporator takes the largest carried out cross-product even cross-fi eld and has more robust market compared proportion; dry evaporator is less used; businesses. Broad started contract energy with host machine. It has low technical the heat exchange effect of falling fi lm management in 2007; Shuangliang carried content and price, therefore it can be evaporator is prominent, but only a few out boiler sales and the latest desalination sold in bulk to increase performance enterprises have such products. project; Sanyo had gas heat pump and when the market is booming; during The cooling capacity of a single screw vacuum boiler products; the electric recession the project owner can reduce water chilling unit ranges from tens of refrigeration products of Guangzhou the host machine procurement expenses, standard tons to 600 standard tons, manly Hitachi, LS and Carrier took certain and the manufacturers of host machine used in middle-scale construction project market shares. Enterprises no longer took would decrease sharply the price, while with areas under 50,000 square meters. absorption water chilling unit sales as the the terminal product would have a small The screw unit of most enterprises is only source of revenue. range of drop in price due to limited price 100 standard tons to 500 standard tons Centrifugal unit, as the type of water reduction. The main manufacturers of in cooling capacity, which can be used chilling unit which is the most advanced terminal product are foreign-invested as the host machine of GSHP; the host in technology, is applied in large or super brands; the market share of domestic machine of ice storage system generally large high-end construction project. brands is less than 20%, including Midea, uses centrifugal unit or screw unit with The sales of centrifugal unit product of DunAn, Shenling, Tsinghua Tongfang, larger cooling capacity. LS and Daunham-Bush have achieved Jirong, Gree, Haier and Guoxiang. At present China screw water chilling considerable progress followed the four Midea has plants in Guangdong and unit enterprises is mainly divided into largest American-invested brands; Midea Chongqing; its Guangdong plant manly two categories: the fi rst is self-supply and Gree of Chinese-invested brands also produces fan coil unit, while Chongqing type; these are screw water chilling have had a huge improvement in sales. plant produces air condition tank as well unit enterprises who produce screw Scroll/piston unit are suitable for small and a small amount of fan coil unit. In 2010 compressor by themselves and only for middle scale project. The brand pattern is the sales of air conditioner terminal internal use, represented by York, Trane, relatively dispersed, and the quality of the product of Midea achieved the highest McQuay, Carrier and Dunham-Bush of product is clearly classifi ed; this category growth. American-invested enterprises as well as Daikin and Hitachi of Japanese-invested ones; the second is procurement type; they purchase screw compressor from professional compressor manufacturers Chart 7 China water chilling unit sales amount by then assemble the product, represented product from 2006 to 2010 (Unit: 0.1 billion Yuan) by Tica, Midea and Gree of domestic brands. Midea purchases screw unit from Hanbell, and develops its own heat exchange; it changes the traditional sales method of central air conditioner, and storages products by way of “rolling storage sales”. Starting from 2009, Midea plant in Chongqing produced developed and sold screw water chilling unit and centrifugal water chilling unit all by itself and was gradually responsible for its own profi t and loss. In 2010 Midea planned to increase the procurement of Source:ChinaIOL screw compressor to carry out OEM of

20 CEAM - April - 2011 Air Conditioner

Heat Pump Water Heater

Production Distribution heat pump water heater has a low market by brand enterprises in the air conditioner Chinese water heater market has 4 base and a board space of development. industry in China, the development of major types of products: electric water First, since 2003, heat pump water heater heat pump water heater will show more heater, gas water heater, solar water heater market has achieved rapid development. explosive force. and heat pump water heater. Different Second, this product is relatively safe, and China’s heat pump water heater products are experiencing a different is suitable for the urban market. Third, began their development in 2003, and stage of development. The market share heat pump water heater has some aspects are now still in the preliminary stage of of electric water heater is shrinking in common with air conditioners and development, in which the brand scale year by year. Due to the implementation other water heater. Being quickly driven is gradually forming and a relatively of the project “West-East Natural Gas Transmission, the market share of gas water heater is gradually increasing. As a model of energy-saving products, Chart 1 Regional Distribution of major enterprises solar water heater has already stepped of heat pump water heaters in China in 2010(by sales into a track of steady growing. The heat volume) pump water heater has become the most potential product of these four types of products. (Chart1/2) The energy-saving performance of water heater has gradually enhanced and has obtained more attention. In 2008, China enforced the energy label system for water heater, which provided favorite conditions for the development of heat pump water heater products. Compared with the other 3 types of water heater, Source:ChinaIOL

Chart 2 Distribution of production bases of major enterprises of heat pump water heaters in China

Enterprise East China South China North China Changling Shunde, Guangdong Deron Panyu, Guangdong Gree Zhuhai, Guangdong Jinjiang Lin’an, Zhejiang Media Foshan, Guangdong Quezheng Foshan, Guangdong Tianshu Nantong, Jiangsu Tongfang Beijing Tongyi Guangzhou, Guangdong SIRAC Foshan, Guangdong Yangzi Chuzhou, Anhui Zhengli Yueqing, Zhejiang Zhongyu Guangzhou, Guangdong

Source:ChinaIOL

CEAM - April - 2011 21 Air Conditioner

stable period is maintained. The market relevant industries. The manufacturers of the international market has a strong share of 13 major enterprises of heat air conditioners, electric water heater, gas demand for heat pump water heater pump water heater has increased year by water heater and even solar water heater products. In 2010, the growth rate of year, and has occupied about half of the have already entered or are preparing export volume of heat pump water heater whole market share. These enterprises are to enter the market of heat pump water exceeds that of domestic sales. The model mainly distributed in South China, to be heater. of exported products has also gradually more specifi c, in Guangdong Province. 5. Specialized compressors began to changed from large commercial units In 2010, more than 80% sales volume of be used on a small scale and tended to to small domestic units, and the number 13 major enterprises of heat pump water be promoted on a large scale. The sp e- of countries and regions to which these heater was concentrated in Guangdong cialization of compressor will break th r- products are exported also increases. Province. ough the technical neck in the development (Chart4) The rapid growth of heat pump of heat pump water heater, and improve In recent two years, the development water heater has drawn the attention of the performance of products. of heat pump water heater has entered into mainstream enterprises of air conditioners China’s heat pump water heater a rapid and relatively rational stage. The and water heater both at aboard and home. mainly develops in domestic market, price of products fells at a slower pace; In addition that some air conditioner and the market share of domestic sales commercial heater are recovered; and the enterprises are gradually permeating the basically hovers at 80%. In recent 2 overall profi t margin of the industry is fi eld of heat pump water heater, traditional years, the export volume has increased improved. However, the development in water heater magnates and even leading signifi cantly. As the economy improves, the domestic market is still limited. Heat solar water heater enterprises are also marching into the market of heat pump water heater.

Production and sales Chart 3 2006-2010 market scale of the heat pump China’s heat pump water heater began water heater industry in China (RMB 100 million) their development in 2003. In recent years, it has almost doubled year on year, 50 showing a rapid development tread. In 2010, the sales volume of heat pump water 40 heater in China reached almost 3.1 billion 30 Yuan. Over the past 5 years, the average annual growth rate has maintained nearly 20

50%. The market characteristics are as 10 follows: .(Chart3) 1. Both commercial heat pump water 0 heater and domestic heat pump water 2006 2007 2008 2009 2010 heater have increased synchronously. Sales volume As the economy improves, the market Source:ChinaIOL of commercial heat pump water heater has fully recovered, and the market of domestic heat pump water heater has also shown steady growth, forming a Chart 4 Scale of domestic sales and export volume of situation of synchronous development of China’s heat pump water heater market in 2007-2010 both commercial and domestic heat pump (RMB100 million) water heater.

2. Manufacturers are developing 35 rationally. The market share of small- scale enterprises is nibbled away. The 28 core competitiveness dominated by brand 21 enterprises has not taken shape, and the 14 number of new entrants is increased. 3. The price of the product is still 7 dropping, but at a slower pace. Due to the 0 price rise of raw materials, it is expected 2006 2007 2008 2009 2010 that the price of heat pump water heater Domestic sales Export volume will fully rise in 2011. 4. The heat pump water heater market Source:ChinaIOL has garnered particular attention from

22 CEAM - April - 2011 Air Conditioner

pump water heater have not been listed into years. In 2010, it was the fi rst time that the Quantum, a trust-worthy export enterprise the catalog of products with the support of growth rate of export volumes exceeded of heat pump water heater, mainly exports the policy “home appliance subsidies for that of domestic sales. Due to the imp- its products to Australia. However, the rural areas”. Domestic heat pump water rovement of international economy and protectionist policy issued by the local heater is not driven by national policy. The good application environment of heat government damaged its export volume main markets for heat pump water heater pump water heater in western countries, seriously, causing sharp decrease in its are tier-2 and tier-3 cities. The customers it is expected that the export volume export volume. In 2010 the growth in and consumption areas are more narrow of heat pump water heater will keep the export market of heat pump water and concentrated due to the price and increasing. Heat pump water heater is heater was mainly attributed to Media, local consumption level. The limitation of mainly exported to developed countries, Gree and numerous start-up companies. sales channels, living environment of big and have relatively high requirements on However, since many start-up companies cities and inherent consumption habits quality, price and technical performance. have neither well-established sales mode all hinder the development of heat pump (Chart5) in the export market nor stable customer water heater in Tier-1 cities. Brand enterprises including Media resources, there is some uncertainties in and Gree and trust-worthy brands of their future development. Export performance water heater have driven the exports of Heat Pump Water Heater are mainly China’s heat pump water heater has a heat pump water heater. Media, Green and exported to Europe, where they are low export base, and the export volume SIRAC have the big export volumes, and supported and encouraged by relevant has maintained rapid growth in recent the exports of Gree grow most rapidly. national policies. The application env- ironment in Germany and France are the most mature. In addition, the USA, Japan and Australia are also mature markets for the application of heat pump water heater. As a new type of environmentally-friendly Chart 5 Export volume of China’s heat pump water product, heat pump water heater is also heaters in 2006-2010 (RMB 100 million) popular in the market of economically developed areas such as Southeast Asia 10 and Middle East. Nearly 80% newly-

8 added market of water heater in Japan is occupied by air source water heater. In 6 Singapore, up to 70% water heater used 4 are heat pump water heater. EU regions are implementing “Req- 2 uirements on Eco-Design Requirements 0 for Energy-using products (EuP directive)” 2006 2007 2008 2009 2010 and relevant policies. Electric heating Export volume will be directly eliminated. Solar water heater, with additional electrical heating, Source:ChinaIOL will also be eliminated after 2011 due to its low effi ciency in additional electrical heating. After 2013, only condensing Chart 6 Sales volume of domestic and commercial gas water heater, solar water heater with heat pump water heaters in China in 2007-2010 additional heating of condensing gas (RMB100 million) water heater, and heat pump products are allowed to be sold. These policies are 35 benefi cial to export enterprises of heat 30 pump water heater in China. 25 Currently, there is still a big gap 20 between the domestic heat pump tec- 15 hnology and the international one. For 10 example, heat pump enterprises in Japan 5 have already developed carbon dioxide 0 heat pumps with good isothermal state. 2007 2008 2009 2010 This kind of heat pump can produce high-

Domestic Commercial temperature hot water in low-temperature conditions. The temperature of output Source:ChinaIOL water could reach above 100℃. In China, the research on this product is still in the

CEAM - April - 2011 23 Air Conditioner

preliminary stage. ARISTON all perform well in the market However, the problems hiding behind the of domestic heat pump water heater. rapid expansion of the market will show Product Characteristics In the market of commercial heat up successively in the next several years. pump water heater, Media dominated A temporary adjustment period will occur Domestic & Commercial by developing domestic heat pump during the development. Year 2011 will At the preliminary development water heater ranks the first, followed be a year linkinng between the preceding stage of the industry, commercial heat by Zhengneng, Zhongyu, Tongfang, and the following years. pump water heater was once the main Quezheng and other commercial heat Gree and Chigo are the highlights in force for exploiting the market. Later, pump water heater enterprise. Compared the fastest developing enterprises of heat domestic ones developed and became with domestic heat pump water heater, pump water heater in 2011. Especially, the main driver of the market of heat commercial heat pump water heater has after several years of preparation, Gree pump water heater. The market of heat high price and high profit, which is a began to supply its products to its sales pump water heater is closely related with great temptation to all enterprises in this channels, and undertook appropriate the economic environment, and is more industry. check of product performance. The market flexible compared with domestic ones. performance will reflect it obviously. In (Chart6) Integrated heat pump water heater addition, Chigo will take rapid actions in The sales channels of domestic heat Integrated heat pump water heater 2011. Haier has technologic advantages in pump water heater are diversified. Brand integrates main machine and water both electric heating and air conditioner. enterprises often adopt the mode of tank, and does not need installation. It Once it takes some action, it will become general regional agent. The general agent can be used just by switching on the a strong competitor in this market. will distribute outlets at the provincial power supply. It solves the problem that Domestic heat pump water heater will level. It is mainly centered on counties and the air source water heater is difficult develop vigorously in 2011. Currently, then radiates to other places. Meanwhile, to be installed. Currently several it is brand that makes an enterprise to professional experience stores are enterprises have already launched stand firmly in the market of heat pump established in major cities. Each end such kind of products. Its advantages water heater. The warm-up made by distributor has its own way. They may of being easy to install has obtained Media, Gree and Chigo on domestic enter the market of building materials, or users’ affirmation, but as a whole, the heat pump water heater enhance people’s set up stores on their own. Media’s channel reaction is calm. This is because: (1) It awareness on domestic heat pump water building has set a successful example for has no advantage in price; and (2) some heater has enhanced. By taking this the industry. Enterprises including Chigo technological defects still exist. They opportunity, enterprises will gain twofold follow it closely. It has gradually become affect the promotion of integrated heat results with half the effort in promoting the mainstream mode of the sales channel pump water heater. the domestic heat pump water heater of domestic heat pump water heater. market. Meanwhile, the export strength Medium and small bands are exploiting Development prediction of domestic heat pump water heater is their own modes via special community 2011 is a turning point for the gradually increasing. As enterprises keep store or featured household product development of the market of heat pump improving their product in technology, experience house. For example, PHNIX water heater. In this year, the number new progress will be achieved in the promotes its cold air heat pump water of heat pump water heater to be sold export market of domestic heat pump heater mainly via experience center. will exceed 1 million for the first time. water heater. More medium and small brands sell their product together with other products, such as solar products and sanitary wares in the market of construction materials. As a whole, medium and small brands are unable to do as much as one would like to in the promotion of domestic heat pump water heater. The top 5 enterprises in domestic heat pump water heater are Media, Jinjiang, Changling, Tongyi, and Gree. The growth of Gree is significant. Enterprises dominated by commercial heat pump water heater do not perform well in the market of domestic heat pump water heater due to their limited channels and energy. New entrants – brand household appliance enterprises such as Haier, Chigo, Changhong, A.O.Smith and

24 CEAM - April - 2011 Air Conditioner

As a key part of Midea Group, The International Division (TID) of Midea Air-conditioning and refrigeration Sector is a comprehensive export platform for air-conditioners, washing machines, refrigerators, commercial air-conditioning systems and heat pump applications.

Midea TID has a sales and operation network spreading across over 150 countries and regions all over the world, tops export business in most product categories among Chinese large white goods suppliers. With strategic production layout worldwide, TID ensures efficient operation with scalable capacity and continuous technology progress.

Adhering to the core values “Safety, Quality, Cost and Efficiency,” TID has integrated R&D, manufacture and sales to provide world class service to customers internationally. Midea TID sustains its competitive advantages through innovation, production capacity and dedicated support services, making the company a leading household appliance supplier in the global market.

Residential A/C Portable

Windows

1, M4 Portable

1, Through The Wall windows

2, M5 Portable

2, Slide_Casement

CEAM - April - 2011 25 Air Conditioner

1, Y family

1, S2 Floorstanding

2, X Family

2, J series

Split Floorstanding

Midea’s wall mounted mult-splits are equipped with DC inverter,a scientific Midea’s floor-standing type indoor unit can be installed anywhere and air conditioning system that allows a single outdoor unit to four indoor fit perfectly with the room interior. It also has a lot of beneficial features units,provides fast and accurate temperature control, outstanding energy to ensure high level of cooling or heating performance and air purifying savings ability and more quiet operation. Along with The Fresco Tech air operation. And like all Midea’s ACs, it saves energy, thus saving your purification technology. Midea’s multi-splits can effectively produces a electricity cost by about 40% compared to conventional. natural, fresh breeze which is good for the human body. Midea’s Golden Finanti-corrosion coating can ensure a higher performance of the heat exchanger as well as a longer life-span.

Rooftop Tropical

1, MRA-36CW 1, Tropical Commercial

26 CEAM - April - 2011 Air Conditioner

Chiller And FCU&AHU

1, LCS405-P 2, MKW2-020L

Heat Pump Water Heater System

1, Heat Pump Water Heater 2, CE-RSJF65/CN1-B + LSX-260XP/A

• GREEN PRODUCTS, SAVES ENERGY. The COP of Midea heat pump Water Heaters is 260~380%! up to 70% energy save, therefore sharply shorten end-user investment payback period, and dramatically reduces the amount of greenhouse gasses produced. • EASY TO INSTALL. As easy to install as a regular electric heater. There is no need for complicated and expensive “special plumbing” work. • SAFTY. No fuel required, best protection from the danger of oil leakage, fire, explosion etc. • ALL SEASON RUNNING. Operates in wide ambient temperature range from -20℃(-7℃) to 43℃, which means it can work not just in sunny days, but night, heavy cloudy and snowy days. • DURABILITY. Midea HPWH equipped with intelligent protection system, and very durable vitreous enameled /stainless steel tank • Full range of HPWH products covers Hosehold type, Commercial type, and Aircon Heat-recovery type HPWH. Widely appli­ ed in house, apartment, hotel, school, hospital, etc.

Midea Group

Add: ShunDe, FoShan, GuangDong P.R.C Tel: 0086-757-26338888 http: //global.midea.com.cn

CEAM - April - 2011 27 Air Conditioner

Gree Electric Appliances, Inc. of Brazil, Pakistan and Vietnam, with users’ choices, our products have been Zhuhai, founded in 1991, is the world's annual production capacity of 30 million sold to more than 100 countries and largest air conditioner enterprise integrat­ sets of residential air conditioners regions. We are the No.1 in RAC sales ing R&D, manufacturing, marketing and and 4 million sets of commercial air volume in global market since 2005. services. conditioners. Innovation and creativity always take Through 20 years’ development, we Gree enjoys a sound reputation for the priority. By continuously cultivating have vertically integrated all production its product quality and performance. In strong internal R&D capabilities, we have value chain, producing key components China, we are the only air-conditioner become a role model for other Chinese such as compressor, motor, tooling mold, brand ranked as a "World Brand" by enterprises, successfully developing new and capacitor. Our products are classified the General Administration of Quality products which are not only ‘Made-in- into 20 categories, with 400 series, and Supervision, Inspection and Quarantine. China’, but innovatively ‘Created-in- 7,000 models. In addition, Gree has been ranked among China. We have 8 production bases in Zh­u­ the "Top 100 Chinese Listed Companies" From ‘Made-in-China’ to ‘Created- hai(China), Chongqing(China), Hef­ei­ (Ch­ by Fortune for 8 consecutive years, in-China’, ’Gree, Making Better Air ina), Zhengzhou(China), Wuhan(China), Thanks to more than 100 million Conditioners!

Residential Air Conditioners

1, R410A,R134a

Admiral (Inverter)

28 CEAM - April - 2011 Air Conditioner

2, R22,50Hz

Admiral

Artful (D.C.Inverter)

3, Tropical(T3)

CEAM - April - 2011 29 Air Conditioner

4, 60Hz

16 SEER D.C. Inverter

Commercial Air Conditioners

GMV(VRF)

1,GMV-Pd Series (D.C. Inverter)

30 CEAM - April - 2011 Air Conditioner

2,GMV-R Series (Digital Scroll VRF, R22,50Hz)

Water cooled chiller

Water cooled chiller

Air Source Heat Pump Water Heating System

GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI

Add: West Jinji Rd, Qianshan, Zhuhai, Guangdong, China, 519070 Tel: (+86-756)8522 218 Fax: (+86-756)8669 426 E-mail: [email protected] www.gree.com

CEAM - April - 2011 31 Air Conditioner

Founded in 1984, the Haier Group has and ventilation solution for residential, earch department, which contains 46 au­ been dedicated to innovation and creating commercial and industrial application, th­orized laboratories, including world’s a world famous brand over the past 26 covering MRV, MULTI, PAC, Chiller leading environmental simulation lab, years. ACG (Air Conditioning Group) and split type, window type, cabinet type, noise lab, EMC lab and so on. consists of three branches, Residential motion type, and etc. Haier ACG has 8 research centers and air conditioner division, Commercial air 10 research partners, which are located conditioner division and Mitsubishi Heavy- Professional Manufacturing in US, Germany, Dutch, Australia, Korea Haier air conditioner division. Among Haier ACG has 16 production bases and Japan such developed countries. these, Haier Residential air conditioner all over the world and could satisfy Haier air conditioner has occupied is China’s biggest manufacturing base for consumers’ needs with speedy actions. the mainstream marketing channels over Freon-free DC inverter air conditioner. 8 domestic production bases are the world. Taking the health, the energy Commercial air conditioner has China’s located in: Qingdao, Dalian, Hefei, Wu­ conservation and environmental protection most complete product categories. Mit­ hai, Chongqing, Jiaonan, Huangdao and as a subject, Haier ACG persists in subishi Heavy-Haier is one of the world’s Mitsubishi Heavy-Haier. independent innovation as well as creating strongest enterprises with the most adv­ 8 overseas production bases are users’ demand and winning the trust of a­nced technology in energy saving, env­ located in: Pakistan, Tunisia, Jordan, users over the world with diverse products, ironmental protecting and intelligent India, Thailand, Bangladesh, Nigeria and advanced technology and consummate control. Algeria. service. Haier ACG is aiming to create and Hair ACG is one of the world’s biggest consolidate her brand image as an expert HVAC manufacturer with full range Professional Design and a leader in the industry for comfortable products that provide the cooling, heating Haier ACG has its own central res­ air and energy saving solutions.

Haier Group

Add: No.1 Haier Road, Hi-tech Zone, Qingdao 266101 P.R.China Tel: +86-532-8893-6983 Fax: +86-532-8789-1010 Website: www.haier.com

32 CEAM - April - 2011 Air Conditioner

GUANGDONG CHIGO AIR CO­N­ complete series of AC products. We are O­14000 Environmental Management D­ITION­ING CO., LTD. (Listing mem­ one of the biggest AC enterprises which System Au­t­hentica­­tion, China Insp­e­ bers of the Group, Stock Code: 449.HK) have the most complete refrigeration ction-free Product Certificate, China established in 1994 and located in a famous industrial chain. All-in-one production Energy-saving Product Certificate, Ch­ Chinese industrial city Foshan. We are a strategy can meet with the diversity ina Co­mpulsory Certificate (CCC), UL big modern enterprise and mainly engage of global market demand and render cer­tificate of the USA, CE certificate in designing, R&D, manufacturing AC as CHIGO to keep fast development speed of EU, GS certificate of German, SAA well as distributing AC domestically and over many years. safety certificate of Australia, etc. We internationally. Till today, CHIGO air conditione­ ­r­ also won the award of “Global Green As a leading enterprise in Chinese ­s w­on varies strict certification in all im­ En­vironment-Protection Energy-Sav­ AC industry, CHIGO’s designed annual portant market, including the ISO9001 in­g Air-conditioning” from United output is 10 million sets, which includes Quality System Authentication, the IS­ Nations.

Household A/C Model Line up

Product No./ Wall Splite Type Floor Standing Type Window Type Portable Air Conditioner Capacity 115 87 108 33 02 08 14 16 9000 BTU ★ 12000 BTU ★ ★ ★ ★ 18000 BTU ★ ★ ★ ★ 24000 BTU ★ ★ ★ ★ 50000 BTU ★ ★ 60000 BTU ★ ★

CEAM - April - 2011 33 Air Conditioner

Commercial AC

1, CMV-[V] DC inverter multi series A/C 2, water-cooled scroll type chiller

Heat Pump Water Heater System

1, HOUSEHOLD TYPE AIR SOURCE HEAT 2, AIRCON HEAT PUMP WATER HEATER PUMP WATER HEATER

GUANGDONG CHIGO AIR CONDITIONING CO., LTD.

Add: Shengli Industrial Park ,Lishui Town, Nanhai, Guangdong, China Tel: 86-757-85668114 Fax: 86-757-85682389 E-mail: [email protected] Http: //www.chigogroup.com

34 CEAM - April - 2011 Air Conditioner

Galanz Group is founded in 1978, air conditioner, household appliances and producer of air conditioners in the world. conditioners and household appliances in relevant industries. In 2005, “globally largest professional air Shunde and Zhongshan, Guangdong. It Galanz entered into air conditioner conditioner R&D base” was established has 13 subsidiaries in headquarter, 52 sales industry since 2001 while realizing in Galanz. This super-scale (3000mu) offices across the country and branches in steady upgrading of microwave industry. air conditioner R&D base engages in H.K, Seoul and North America. As the pioneer in deluxe stainless steel collective development and production Through extensive economic air conditioners, Galanz found its name of light wave air conditioners and became exchanges and trading with more than among strongly competitive brands in another “global champion” after the 100 countries and regions in the world, the first year when Galanz set its foot microwave oven. Galanz Group’s total output was about into the air conditioner and refrigerator Persisting to the business concept RMB18 billion, and import and export industry. In 2004, Galanz invented light of “Greatness originates from creativity” amount was about USD1 billion in wave air conditioner, which became and the business tenet of “Working hard 2006. In recent years, 40000 employees popular immediately. The export volume to move customers”, Galanz is speeding of Galanz have been dedicated to global ranked among leading ones in the world its step towards a global brand and a development of its microwave oven, air and helped Galanz to become a major world-class enterprise.

Product

RAC

By District: ASIA-PACIFIC, EUROPE, AMERICA, AFRICA & MIDDLE EAST

By Type: DC Inverter Split, ON/OFF Split, Portable Type, Window Type, Floor Standing Type

1, DC Inverter Split

Model:Kudo

Capacity(BTU): 7K/9K/12K/18K/24K Refrigerant: R22 Frequency: 50HZ

CEAM - April - 2011 35 Air Conditioner

2, Portable Type Heat Pump Water cycling system

Model: Portable Type(D) Heat Pump Water Heater

Capacity(BTU): 7K/9K 3.0-5.3Kw, 3.5-7.2 Kw Refrigerant: R410A/R407C R410A or R22

Commercial Air Conditoner

Light Commercial Aircon (50Hz/60Hz), Chillers and Terminals, Multi Split System and VRF, Heavy Commercial Split unit

1、Multi Split System and VRF 2、Chillers and Terminals

DC Inverter VRF system

VRF system DC Inverter modular 25.5Kw/28.0Kw/33.5Kw/40.0Kw/45.0kw Water Cooled scroll Chiller

Guangdong Galanz Group Co., Ltd.

Add: No.25, South Ronggui Avenue, Shunde District, Foshan City, Guangdong Province, China Postal Code: 528305 Tel: 86-757-28886389 Fax: 86-757-28889628 E-mail: [email protected]

36 CEAM - April - 2011 Air Conditioner

With the corporate sprit of “Relying “Chinese Famous Brand”. Adhering to last ten years, the company has developed on Human Resources and Managing by the development policy of enlarging and into a highly prospective and vigorous Trust”, AUX Group has been standing strengthening out enterprise, it has now one which owns 28 departments and 200 over 20 years and is now 1000 times become a strong and competitive group, young and ambitious employees and a larger than its initial scale. Today it has ranking high in electrical energy measuring total amount of annual trading around 220 total assets over 8 billion and a staff over equipment area and home appliances area million dollars. The export goods of the 30,000. The group has been engaged in and getting more and more prosperous company include air-conditioner, mobile four manufacturing industries: electrical and competitive in the telecommunication phone and home appliance. And our power, home appliances, energy and industry. market covers more than 100 countries, telecommunication, and three investing Founded in November, 1997, Ningbo including Turkey, Australia, Syria, United areas: real estate, medical services and AUX Import and Export Co., Ltd has a Arab Emirates, Algeria, South Africa and logistics. Moreover, it has established a registered capital of 150 million RMB. Venezuela, etc. three-square kilometer production base, As a subsidiary company of AUX group In 2004, Ningbo AUX Import and which includes three production bases in charge of international trading, in the Export Co., Ltd was credited as “Chinese in Ningbo and one production Famous Product” and “Chinese base in Nanchang, Shenzhen and Models Line Up 2011 Famous Brand”, and got the title of Shanghai respectively. At the same Model/Btu 7000 9000 12000 18000 24000 “Grade A Management Enterprise” VH ★ ★ ★ ★ time another four production bases VP ★ ★ ★ ★ and “Grade AA Management of KA ★ ★ ★ ★ ★ are in the course of being built up KS ★ ★ ★ ★ ★ Processing Business” by custo­ SG ★ ★ ★ ★ worldwide. SV ★ ★ ★ ★ mhouse. In 2005, it was credited Now, AUX Group has alr­ SA ★ ★ ★ ★ ★ as “2005-2006 Chinese Key SF ★ ★ ★ ★ ★ eady been one of the top 500 SE ★ ★ ★ ★ ★ Fostering and Developing Famous SQC ★ ★ ★ ★ ★ Chinese En­terprises members, QA ★ ★ ★ ★ ★ Brand”. In 2006, it was credited as top-20 Chinese nongovernmental­ QB ★ ★ ★ ★ ★ “Key Recommendation Product of QD ★ ★ ★ ★ ★ enterprises, top-25 Chinese big QF ★ ★ ★ ★ ★ Department of Commerce”. In 2007, QN ★ ★ ★ ★ ★ competitive Enterprises, Chinese EQ ★ ★ ★ ★ ★ it was credited as “2006 Annual EP ★ ★ ★ ★ ★ leading information enterprise, EN ★ ★ ★ ★ ★ Advanced Nongovernmental Inter­ Na­t­i­onal key scientific and tech­ EC ★ ★ ★ na­tio­­nal Business Enterprise” and EF ★ ★ ★ nological enterprise. Besides, it EA ★ ★ ★ ★ ★ “Standard Enterprise of Inter­nat­ EV ★ ★ ★ ★ ★ has become the standing body ET ★ ★ ★ ★ ★ ional Business Operating”. of Chinese National Engineering M ★ ★ ★ With the steady and persisting N ★ ★ ★ research center and National SA ★ ★ efforts of AUX people and the SF ★ ★ postdoctoral work station. The S ★ ★ implementation of the industry C ★ ★ group has already built developing B ★ ★ upgrading strategy, human resource academes in Ningbo, Shanghai, A ★ ★ strategy and internationalization Model/Btu 9000+9000 9000+12000 12000+12000 Shenzhen, and Nanchang: and has VH ★ ★ ★ strategy, we have strong confidence SG ★ ★ ★ been conferred with famous brands SA ★ ★ ★ that AUX group will become a of China: “Sanxing” and “AUX”, Model/Btu 24000 26000 42000 48000 55000 worldwide influential manufacturer M/N ★ ★ ★ ★ ★ the latter of which is ratified as EF ★ and corporate group.

Ningbo Aux Imp. & Exp. Co., Ltd.

No.1166 North MingGuang Road (Aux Technology Park), JiangShan Town, Ningbo, Zhejiang, P.R.China TEL: 86-574-88220804 FAX: 86-574-88220720 Http: //www. cnaux.com E-MAIL: [email protected]

CEAM - April - 2011 37 Air Conditioner

Founded as Qingdao No.2 Radio Factory in 1969, Hisense has now developed into a group corporation which has two listed companies (Hisense Electric Co., Ltd. (600060), on the Shanghai Stock Exchange, and Hisense Kelon Electrical Holdings Company Ltd. (000921), on the Shenzhen and Hong Kong Stock Exchanges), owns three famous trademarks (Hisense, Kelon and Ronshen), and provides a wide range of products and services including multimedia, home appliances, communications, information technologies and real estate.

Hisense Kelon Electrical Holdings Company Ltd. (the “Company”) and its subsidiaries (collectively referred as “Hisense Kelon”) are currently one of the largest manufacturers of household electrical appliances manufacturing enterprises in China.

Headquartered in Shunde District, Foshan City, Guangdong Province, Hisense Kelon, as one of the first refrigerator manufacturing enterprises , commenced refrigerator production in 1984. The sales volume of Hisense Kelon’s refrigerators and air-conditioners has been among the highest in China for many years. In particular, Hisense Kelon’s refrigerators have embraced the biggest market share for a decade.

At Hisense, the emphasis is placed on innovation and quality. The company has a global R & D network of more than 2000 engineers and has a national-level R & D Center, a post-doctoral research workstation, and a state-of-the-art multimedia technology laboratory. It has been the recipient of several recognitions and awards in the name of innovation, technology, design, and quality management. In addition, Hisense has partnerships with IBM, Hitachi, Whirlpool, and AMD for the development and marketing of air- conditioners, refrigerators, and information technology.

Over the past years, Hisense Co. Ltd has grown rapidly and it will continue to focus on such sustainable and profitable growth in the global market. Hisense enjoys providing new experiences and values to its customers all around the world. Through fulfilling its commitment to continually deliver innovative products and services, Hisense will enhance its global presence in the multimedia, household appliance, mobile communications, information technology and real estate industries.

Hisense International Co., Ltd.

ADD: 17, Donghaixi Road, Qingdao, 266071, China Tel: +86-532-83895188, 83878888 Fax: +86-532-83866770 Http://www.hisense.com E-mail: [email protected]

ADD: 08 Ronggang Road, Ronggui, Shunde, Guangdong, RPC 528303 Tel: +86-757-2836 1400 Fax: +86-757-28361060 Http://www.hisense.com E-mail: [email protected]

38 CEAM - April - 2011 Air Conditioner Line Up-R410A

CEAM - April - 2011 39 Air Conditioner

Established in 1999, TCL Air Conditioner Division is now capable of manufacturing all kinds of Room air conditioners, commercial air conditioners, portable air conditioners, dehumidifiers and compressors. It also has formed a comprehensive and professional air conditioner industrial chain and owned a professional team engaging in R & D, manufacture, QC, marketing and after-sales services. TCL Air Conditioner Division has several subsidiaries including TCL Air Conditioner (Zhongshan) Co., Ltd and TCL Air Conditioner (Wuhan) Co., Ltd specializing in the production of portable air conditioners and dehumidifiers and TCL Rechi (Huizhou) Refrigeration Equipment Co., Ltd specializing in the production of compressors used in air conditioners. Being the deputy director of China Air Conditioning and Refrigeration Enterprises Association and the hi-tech enterprise of Guangdong Province, TCL Air Conditioner Division has two air conditioner production bases at Zhongshan of Guangdong Province and Wuhan of Hubei Province respectively. Up to now, this Division has a total annual capacity of over 7 million sets with a sales network covering more than 130 countries. TCL Air Conditioner (Zhongshan) Co., Ltd has gained a rapid growth based on the powerful TCL brand, which is well known as “the fastest growing brand in China’s air conditioner industry”.

TCL Air Con Family Tree T1 410A T1 410A T1 410A 220V 50HZ Fixed T1 410A 220V 60HZ Fixed T1 410A 115V 60HZ Fixed R290 220V 50HZ 220V 60HZ Speed Speed Speed Product DC Inverter DC Inverter Cooling & Cooling & Cooling & Cooling & Cooling & Cooling & Heating Cooling Cooling Cooling Heating Heating Heating Heating Heating 5k 6k 7k ★ ★ 9k ★ ★ ★ ★ ★ ★ ★ ★ ★ 12k ★ ★ ★ ★ ★ ★ ★ ★ ★ 18k ★ ★ ★ ★ ★ ★ 22k ★ ★ ★ 24k ★ ★ ★ ★ ★ ★ 30k 32k

T1 R22 220V 60HZ T1 R22 115V 60HZ T3 R22 220V 60HZ T3 R22 220V 50HZ T1 R22 220V 50HZ Product Cooling & Cooling & Cooling & Cooling & Cooling & Cooling Cooling Cooling Cooling Cooling Heating Heating Heating Heating Heating 5k ★ 6k ★ ★ 7k ★ ★ ★ ★ ★ ★ 9k ★ ★ ★ ★ ★ ★ 12k ★ ★ ★ ★ ★ ★ ★ ★ 18k ★ ★ ★ ★ ★ ★ ★ ★ 22k ★ ★ ★ 24k ★ ★ ★ ★ ★ ★ ★ ★ 30k ★ ★ ★ ★ ★ ★ ★ ★ 32k ★ ★

TCL Home Appliance (Hong Kong) Company, Ltd.

Add: No.59, Nantou Road West, Nantou, Zhongshan, Guangdong, China Tel: +86-760-8782 1508 Fax: +86-760-8782 1725 Http://hao.tcl.com Business: omc@ tcl.com Technical Service: [email protected]

40 CEAM - April - 2011

PART 2: Compressor

Rotary Compressor Scroll Compressor

Main Manufacturers Compressor

Rotary Compressor

Production Distribution plus the individual needs of various such as good economic performance With the rapid development of China customers, the enterprises basically home and abroad, hot weather and household air conditioner sector, rotary produce according to the orders and political stimulation, the production compressor which is the key component barely prepare for inventory ahead of and sales of downstream air conditioner also fl ourishes. From 2006 to 2010, the time, therefore the production and sales sector boomed, which caused the short production of China rotary compressor have kept nearly the same. From 2006 supply of compressor. The production reached annual growth rate of 11% and to 2010, the annual average growth rate and sales of compressor all exceeded production capacity utilization rate of of production and sales of China rotary 0.1 billion units in 2010, up more than about 87%; in 2010 the total output compressor reached 17%, higher than that 50% year on year; the production and reached 109 million units. (Chart1/2) of rotary compressor production capacity. sales in some months even reached over In the nineties, Japanese and Korean (Chart3) 10 million units. compressor enterprises have set up plants In 2010 rotary compressor kept in The overall production capacity ut- and joint ventures or did business with short supply and full-loaded operation as ilization rate of foreign-invested en t e- single proprietorship in China. China well as selling out situation. The series of rprises (including Japan-invested, Ko- also has its independent compressor economic stimulation policies adopted by rean-invested and Taiwanese-invested enterprises. Landa, as a branch company China made all air conditioner enterprises ones) is only in moderate or lower. Those of Gree, has further expanded production to be optimistic about the estimation enterprises are generally supported by capacity of Zhuhai plant by increasing in 2010, plus the price rising of raw large consortia, and compressor sector equipments and getting over bottlenecks materials, the enterprises started stocking is just a part of business for the Groups. of production in August 2010, with and increased inventory since the off Due to the low profi t of rotary compressor annual capacity reaching 12 million units. season of 2010. Under the positive factors sector, the Groups tend to invested more on In addition, Landa’s Boyan Science and Technology Park Plant in Hefei, Anhui with annually production capacity of 4.5 million units has put into operation in March 2011, increasing the total annual capacity of Landa to 16.5 million units. China rotary compressor production Chart1 Evolvement of China rotary compressor is concentrated in East China and production capacity and production capacity South China, and the newly-built and utilization rate from 2006 to 2010 expansion projects are moving to the inland of China; Anhui, Jiangxi has 12000 100.00% become the emerging production bases. 10000 The common characteristics of the 80.00% 8000 transformation and expansion projects 60.00% 6000 are close to the customers and located 40.00% 4000 in the inland, which can help to reduce 2000 20.00% labor and transportation costs and 0 0.00% respond to the needs of customers as 2006 2007 2008 2009 2010 soon as possible. Production Capacity(10k units) Production and Sales Production Capacity Utilization Rate The production and sales of rotary compressor are decided by the demand Source:ChinaIOL from downstream air conditioner sector;

CEAM - April - 2011 43 Compressor

Chart 2 China rotary compressor enterprise production base distributions in 2010 (10k units)

North Northwest Northeast Central Production Enterprise East China South China Other China China China China Capacity

Hefei, Zhuhai, Landa 1200 Anhui Guangdong

Chinese- Xi'an, QingAn 350 invested Shaanxi

Xi'an, Inpower 100 Shaanxi

Hefei, Foshan, Qmcc 2200 Anhui Shandong

Nanchang, Highly Shanghai 1400 Sino- Jiangxi Japan Joint Resources Shenyang, Venture 640 Sanyo Liaoning

Gree- Zhuhai, 150 Daikin Guangdong

Guangzhou, Panasonic 1200 Japanese- Guangdong invested Mitsubishi Guangzhou, 750 Electric Guangdong

Suzhou, Samsung 1000 Korean- Jiangsu invested LG Tianjin 1000

Taiwanese- Qingdao, Huizhou, Rechi Taiwan 900 invested Shandong Guangdong

Total 10890

Source:ChinaIOL

other sectors with higher profit and better growth in the sector, including market exports in China was small, accounting development prospect. Those enterprises share and annual average growth rate. for 15% to 20% of the total sales, mainly just need to complete the tasks assigned Most of those enterprises operate belonging to foreign-invested enterprises. by the headquarters and their assessments independently, with little control from the The global compressor production capacity mainly focus on profit; while they can Group; therefore they must work harder distributions are quite close to the major air maintain the competitiveness of the profit because they are responsible for their own conditioner production bases. Due to the by the advanced technology, therefore profit and loss. GMCC and Landa, with large investment needed for compressor their pressure on production and sales is internal customers being Midea and Gree plant, it is more concentrated than air less than the domestic enterprises. respectively, have become two giants of conditioner enterprise; 90% to 95% of Chinese-invested enterprises (includ­ the sector, and in 2011 their production air conditioner production is in Asia, ing Chinese-funded ones and Sino- capacity will expand further again. while more than 99% of compressor Japanese joint venture) lead in overall The proportion of rotary compressor production is concentrated in Asia. The

44 CEAM - April - 2011 Compressor

major compressor production countries are China, Thailand, Korea, Japan and Malaysia, with combined production capacity accounting for 97% of the Chart 3 China rotary compressor pro duction and sales total, among which the production evolvement from 2006 to 2010(10k units) capacity of China accounts for about 81%. (Chart4) 12000

Overseas Market 10000 Besides China, Thailand and India are emerging rotary compressor markets 8000 which have attracted the most attentions. 6000 (Chart5)

In 1980th the manufacturing sector of 4000 Thailand, especially electronic industry, 2006 2007 2008 2009 2010 realized rapid development. The capacity Production Sales of air conditioner market was only about 1 million units; most of the air Source:ChinaIOL conditioner enterprises were Japanese- invested and Korean-invested ones as well as Thailand domestic ones, mostly exporting overseas. In 2010 Samsung Chart 4 China rotary compressor domestic sales and set up inverter air conditioner production exports from 2006 to 2010 (Unit: 10k units) line in Thailand; Sharp’s application for investment expansion project in Thailand was also approved; Daikin increased the 12000 output of its local plant; therefore the demand for compressor increased. 10000 According to industry forecasts, in 8000 2010 the air conditioner sales in India was expected to reach 4.5 million units; 6000 in 2015 its demand for air conditioner will realize more than 10 million units. 4000 The demand for compressor increases 2006 2007 2008 2009 2010 with the development of air conditioner Domestic Sales Exports market. In 2005 Taikang set up the fi rst rotary compressor plant in Hyderabad, Source:ChinaIOL which put an end to India’s total imports of air conditioner rotary compressor. Although imports was still dominated in the following years, Highly and other Chart 5 Global distribution of rotary compressor enterprises of China increased the exports production capacity in 2010 to India, and international compressor enterprises also set up offi ces in India. Indonesia Malaysia In 2010, Pennar Industries set up 1% 2% rotary compressor shell production Korea Taiwan India 0% Czech line in Isnapur, with annual output of 3% 1% 1% Japan 0.7 million units, mainly supplying to Thailand 4% 6% Taikang Due to the underdevelopment of air conditioner equipment industry in China India, most air conditioner components 82% were imported. Korea, Japan and Malaysia are old compressor production bases; in the recent year, rotary compressor rarely has new production bases, basically keeping Source:ChinaIOL the early layout by Korean-invested and Japanese-invested enterprises.

CEAM - April - 2011 45 Compressor

Daikin has adhered to the strategy Heat Pump Water Heater Compressor nched on the market, and had realized of “Global Distribution, Local Service”. The rapid development of China volume production. In the second half It has plants in Japan, Thailand, Czech heat pump water heater sector attracts a of 2009 GMCC launched various series and China. The proportion of compressor lot of attention from rotary compressor of heat pump water heater compressors produced in China and sold back to Japan enterpries for the heat pump water heater including G1C, G2C, M1C, M2C, X3C has increased year by year, and the joint compressor. At present scroll compressor and P2C, with refrigerant including R venture of Gree and Daikin also has some and rotary compressor are the main 134A, R417A and CO2, and also realized products that sell back to Japan. The rotary categories of heat pump water heater volume production. Under the support compressor production of Samsung is all compressor. The general air conditioner of the fund from “National Technology in China, with total capacity of 10 million compressor cannot ensure the stability Support Program”, GMCC jointly deve- units in 2006 after the movement and no when applied in heat pump water heater. loped CO2 heat pump water heater sys- major changes afterwards. Panasonic As for compressor enterprises, if supplying tem with “Vanward” Group. The R134A puts more effort on its plants in China. air conditioner compressor to heat pump compressor of Mitsubishi Electric can In 2010 Panasonic closed the Hangzhou water heater, not only they cannot get the adapt well to heat pump water heater, plant, moved the production line to expected profi t, but also results in after- which started to sell in 2007, mainly Guangzhou, and made the Guangzhou sales problems, which would hinder the to European market which was more plant as the R & D and manufacturing long-term development for the whole mature. In addition, Panasonic Wanbao centre for Panasonic room air con- heat pump water heater industry chain. and QingAn were also in the middle of ditioner compressor. A scroll produ- Therefore the compressor enterprises development stage of special compressor ction line of Panasonic’s plant in did not encourage heat pump water for heat pump. Kusatsu of Japan is planned to move heater enterprises to use air conditioner Heat pump water heater had small to China in the second half of 2011. compressor, and put more efforts on the market, and the current industry structure In the future Panasonic Compressor R & D and promotion of heat pump water was not stable; the supply of compressor will reach to China as well as global heater compressor. also did not form stable pattern. The market with Guangzhou as the centre Highly is the fi rst compressor en- future of heat pump water heater is in the future. terprise that launched heat pump water decided by the guidance and stimulation heater compressor. On 4th November of the national policy. At present China Key Application Field of 2009, Ruineng 4XPOWER series has started to draw up relative standards special compressors were formally lau- for heat pump water heater. Inverter Compressor In the middle of 1990th, inverter rotary compressor had realized scale production in China. With more than ten years of market development, the demand for air conditioner equipments in China was still in downturn. In 1995, Panasonic started to invest on inverter rotary compressor, then Highly, QingAn, GMCC and other ones followed up, but some did not put into operation, and some even Chart 6 China inverter rotary com pressor sales did not have investment plan. Among evolvement from 2008 to 2010 the eleven major rotary compressor enterprises, nine had realized volume production of inverter compressor. The 4500 4000 out-of-step development of inverter 3500 rotary compressor was partly due to the 3000 unbalanced technological development, 2500 2000 but mainly because of the lack of market 1500 incentives. (Chart6) 1000 In the recent three years, the pro- 500 duction capacity of China inverter com- 0 2006 2007 2008 pressor kept growing; the product was upgraded constantly and the production Inverter Compressor line became more diversifi ed; while the development of inverter compressor of Source:ChinaIOL various enterprises was unbalanced.

46 CEAM - April - 2011 Compressor

Scroll Compressor

Production distribution restored in 2009. In 2010, stimulated exports. Affected by the global fi nancial Scroll compressors for air conditioning by the energy saving policy of the state crisis occurring in 2008-2009, the exports are mainly used in heat pump water and good performance of cabinet unit, declined. heater, household cabinet air conditioner, VRV, WSHP and GSHP product market, Hot weather, booming real estate residential central air conditioner and large scroll compressors witnessed explosive industry, upgrading of domestic air scale central air conditioner. Excellent growth, its sales volume increased by conditioning energy effi ciency standard performance of scroll compressor and around 47% year on year. Besides net and energy-saving subsidy policy boosted rapid development of the air conditioning exports, scroll compressor consumption the sharp increase of application of scroll market of China contribute to huge market in China soared by around 41% year on compressors in the domestic market. demand on scroll compressor. The leading year. (Chart4/5) Benefi ted from the stimulus of the state manufacturers in this area include Copel, 88% of the production of scroll energy saving policy, the application Hitachi, Sanyo, Daikin and Danfoss had compressor plants in China served the situation of 3-5HP scroll compressors established production bases in China domestic demand and around 12% was for on the cabinet market rose in 2010, (note: Daikin mentioned in China refers to Xi’an Production Base, not including Suzhou, hereafter the same). (Chart1/2) Sound development of air condition- ing products such as cabinet air conditioners, VRV, WSHP and GSHP Chart 1 Production distribution of 2010 scroll have stimulated the market demand of compressor in China (by sales volume) China on screw compressors. World compressor manufacturers established plants in China successively to provide technical and service solution of scroll compressor products. In 2010, scroll compressor production volume in China reached up to 4 million units, of which around 420,000 units were exported and around 3,600,000 units were consumed in China. (Chart3) Source:ChinaIOL

Production and sales During the period from 2006 to 2010, the production and sales of scroll compressors in China kept on increasing Chart 2 Scroll compressor production bases in China in 2010 16% annually on average (note: scroll compressor industry generally organizes Enterprise East China Northeast Northwest production as per the order, therefore, Copel Jiangsu Suzhou rapid product turnover rate makes the Sanyo Liaoning Dalian inventory very few). The sales growth in China was slightly lower, nearly 16% Hitachi Tianjin annually. Affected by the fi nancial crisis Daikin Shaanxi Xi’an in 2008, the economy shrank, the sales Danfoss Tianjin volume of the scroll compressor market declined, scroll compressor growth Source:ChinaIOL

CEAM - April - 2011 47 Compressor

compressors were in short supply. Scroll R410A as refrigerant has been launched are major unit types. The shipment in compressors can’t meet the market on the market. (Chart8) 2010 increased by 36.6% year on year, demand owing to its small size and more Scroll compressors with refrigeration of which Dalian Sanyo ranked fi rst with energy-saving etc. Sound development more than 3HP but not more than 7HP its scale of more than 1 million units, of variable capacity multi-split units also became the main application area of scroll compressors in commercial unit fi elds. High added value, good profi tof Chart 3 Scroll compressor supply con dition of 2010 in inverter VRF became the major points China (by supply) of the strategic developments of scroll compressor enterprises. Scroll compressor 12% 2% enterprises also tried to offer products of more power (HP) to compete with some 16% 41% screw compressor markets. 29%

Export performance From 2006 to 2009, the exports of fi ve scroll compressor enterprises reached less Copel Sanyo Hitachi Daikin Danfoss than 300,000 units. The exports of scroll compressors in 2010 reached 483,300 units, up 87.9% year on year. Reduction Source:ChinaIOL of orders from domestic plant of Emerson made the export volume decline due to Chart 4 Sales volume of scroll com pressors in China headquarter order adjustment whereas from 2006 to 2010 and its sales volume evolvement exports of other enterprises grew (10k units) signifi cant compared with those of the same period of the previous year. Asia, 450

Latin America, North America and 360 Europe were main export regions of scroll compressors, while Brazil, Thailand, 270

India, the United States and Malaysia 180 were fi ve major countries with largest demands. (Chart6/7) 90 Among fi ve scroll compressor ent- 0 erprises, the export volume of Sanyo is 2006 2007 2008 2009 2010 the largest whereas the export amount of Sales volume Volume consumed in China Danfoss is the highest. Note: Volume consumed in China=Sales volume+ net export (i.e. Product Detailed Classifi cation Import volume - export volume) The market competition of scroll Source:ChinaIOL compressors of 3HP and below are fi erce and scroll compressors is less Chart 5 Domestic and overseas sales volume of scroll advantageous compared with rotary compressors in China from 2006 to 2010 (ten thousand compressors in terms of costs. Currently units) 3HP scroll compressors are generally applied in middle and high-end cabinet 450 units. Contributing to the guidance and stimulation of the energy-saving 360 policy of the state implemented in 270 2010, the application condition of 3HP scroll compressors on the domestic air 180 conditioning market was quite good. 90 However, as the production capacity of scroll compressors is limited and its 0 product structure is mainly R22 rather than 2006 2007 2008 2009 2010 R410A unit, so the demand from R410A For domestic market For export model can not be met, thus it lost some Source:ChinaIOL market. Currently, scroll compressor with

48 CEAM - April - 2011 Compressor

Copel increased most rapidly. Research At present, the annual production capacity the project of Phase 2 is completed in and development of high effi ciency of Meizhi Scroll compressors reaches up 2011, the production capacity of scroll compressor products by manufacturers to 100,000 units and all of them are R22 compressors will reach up to 250,000 tallied with the market demand, making it 5HP compressors. It is planned that after units. one of the main momentums for shipment growth. In 2011, H& M series 2-7 HP compressor production line of Danfoss was completed and put into production in China and supply of compressors by Chart 6 Export trend of scroll com pressors in China small batch has been achieved at present. from 2006 to 2010 (ten thousand units) Scroll compressors of more than 7HP increased slowly owing to the 50 sales volume decline of the downstream commercial air conditioning industry 40 in 2009. However, scroll compressors 30 presents strong increase momentum in 2010, with the supply amount of the 20 whole year reaching up to 308,000 units, 10 up 64% year on year. Copel, Danfoss and 0 Xi’an Daikin are three major enterprises 2006 2007 2008 2009 2010 with the largest supply. Export volume

Market development Note: The above is the total exports of fi ve major enterprises The heat pump water heater market in listed in the paper surveyed, which does not include Daikin China is developing rapidly, VRF, water (Suzhou) exports. source heat pump and ground source heat Source: China Customs pump are on the rise on the market and the application area and market of scroll compressors are expanding; meanwhile, Chart 7 Export condition of scroll compressor in old domestic air conditioning enterprises China (by sales volume) also actively involve in the commercial unit market, the downstream demand for scroll compressors becomes more 3% 30% vigorous. 40% Scroll compressors of 3HP and 18% above take part in the scroll compressor market competition more aggressively. 9% In the late 2010, Panasonic moved one CS series scroll compressor production Copel Sanyo Hitachi Daikin Danfoss line to China from Japan with its annual production capacity of 300,000 units and the refrigerating capacity of 5HP Source: China Customs and below, covering water heater, water chilling unit and dehumidifi er, domestic Chart 8 Product structure of scroll compressor air conditioner and small commercial air detailed class in 2010 in China by refrigerating conditioners. Refrigerator types mainly capacity include units with carbon dioxide as refrigerant and a handful of units with 9% R410A as refrigerant; carbon dioxide 7% 18% unit mainly caters to the Japanese market 12% and the R410A unit mainly directs to 48% the EU market. Generally products are 6% mainly sold to Japan, the possibility that the products will participate in the ≤3HP （3HP，4HP】 （4HP，5HP】 （5HP，6HP】 competition of the Chinese market can not （6HP，7HP】 ＞7HP be ruled out. In December 2010, GMCC held the scroll compressor leaving-the- Source:ChinaIOL assembly-line ceremony in its Hefei base.

CEAM - April - 2011 49 Compressor

Guangdong MEIZHI Compressor Ltd. Compressor Manufacturing Co., Ltd and on the their corporate vision “To be the (GMCC for short) is a large Sino-Japan- Anhui Meizhi Precision Manufacturing most excellent compressor supplier ese joint venture company specializing in Co., Ltd. GMCC has a registered capital in the world”, believing the core rules R&D, manufacturing and marketing of of 848 million yuan, a plant area of “Dedicative, Interactive, High-Effi ciency air-conditioner compressors, refrigerator 620,000 square meters and a staff of over & Effective, Competitive”, abide the compressors, compressors for heat pump 9,000. core values of conduct “Customers water heaters, scroll compressors and GMCC is the largest manufacturer First, Pragmatic & Innovative, Respect horizontal compressors, controlled by of air-conditioning compressors and People, Keep Learning”, devote to Guangdong Midea Electric Appliances the most potential manufacturer of making the business compressor stronger Co., Ltd., China, and with Toshiba Carrier refrigerator compressors of the world and bigger, working unremittingly in Corporation, Japan being a shareholder. today. In 2010, the sales volume of air- pursuit of the intensive & connotative GMCC was founded in 1995, and has conditioning compressors is expected sustainable development base on 5 subsidiaries as of 2010, which are to attain 25 million units, with a global accumulated knowledge & innovation, Guangdong Meizhi Compressor Co., market share of over 25%, 3.8 million and making unremitting efforts to build Ltd., Guangdong Meizhi Precision refrigerator compressors will be sold. the comprehensive competitive advantage Manufacturing Co., Ltd., Anhui Meizhi Following the “world-leading str- with is based on products, human Compressor Co., Ltd., Anhui Meizhi ategy”, all the staff of MEIZHI, focusing resources, effi ciency, speed and scale.

1 2

1. CO2 HEAT PUMP WATER HE ATER COMPRESSOR 2. R290 NEW REFRIGERANT AIR CONDITIONING COM PRE- SSOR Pure natural CO2 refrigerant , effi cient and environmental-friendly Excellent performance s in low-temperature, strong start ability under The worldwide-leading technology, excellent GMCC wis dom extreme condition Natural environmental-protection , huge potential products for future * United Nations Multilateral Fund of Montreal Model production line

50 CEAM - April - 2011 Compressor

3 4

3. DOUBLE CYLINDER VARIABLE CAPACITY AIR-CONDITIONER 4. DC-INVERTER COMPRESSOR FOR AIR-COND ITIONER COMPRESSOR Sino-originating DC motor design techniques, Double-cylinder, low noise, Super power makes, heating rate increased by 20% slight vibration, and 30% energy saving Strong heating ability at ultra-low temperature -7 ° C, heating capacity in Humanistic frequency conversion technology, with ad justable running low temperature increased by 30% speed and cooling capacity covering wider orange o peration area and Variable capacity operation, free choice of single or double cylinder bringing more convenient and more comfortable feeling * Global fi rst 3HP double-cylinder variable capacity technology Stable and long life expect ancy, for your peace-of-mind usage

5

5. R410A ENERGY-EFFICIENT COMPRESSORS

Creative design reduces shaft power consumption and improves effi ciency; Creative design reduces shaft power consumption and improves effi ciency Dual exhaust structure safeguards compressor perfo rm a n c e with top- ranking energy effi ciency ratio Lowest oil displacement helps air conditioner achieve highest energy effi ciency

Guangdong MEIZHI Compressor LTD.

Add: Shunfengshan Industrial Development Zone, Shunde, Foshan, Guangdong, China Post Code:528333 Tel: (86-757) 22329000 Fax:(86-757) 22292733

CEAM - April - 2011 51 Compressor

Shanghai Hitachi Electrical App l- subsidiary). It covers an area of 230 million air conditioner compressors in iances Co., Ltd. (hereafter referred to thousand square meters in Pudong Jinqiao June, 2010 and had fi nished the sales SHEC) was foundered on Jan, 30th, Development Zone in Shanghai. SHEC of one hundred million units in August, 1993. SHEC is a joint venture between invested and constructed a wholly-owned 2010. Shanghai Highly (Group) Co. Ltd. (which subsidiary, Nanchang Highly Electrical Around the two global problems about subordinated of Shanghai Electric Group Appliances Co., Ltd. Nanchang Highly “Freon replacement and Energy-saving”, Co., Ltd.) and Hitachi Appliances, Inc. has been put into production in April 18th, SHEC keeps following and researching 75% share is held by HIGHLY (a listed 2009. It covers an area of 340 thousand the advanced technology of refrigeration company, A Share Code: 600619, B Share square meters. The annual capacity of it industry and the innovation of scientifi c Code: 900910) and 25% share is held by is 6 Million Units in project. technology. The products of SHEC can HITACHI. SHEC designs, produces and As a huge joint venture which is be divided into eight series to cover sales professional home-use refrigeration controlled and managed mainly by all the range of domestic refrigeration. compressors. The total capital of SHEC is Chinese, SHEC has become the second The main technical parameters of the 573.80 Million US Dollars and the annual largest air conditioner manufacturer in the products have reached the international capacity is 18 Million Units (including world. SHEC had produced one hundred advanced level.

The family of WHP series miniaturization and sterilization. This product could be warranty for 10 years life according to the innovation design based on the new For the domestic market structure, material, working condition and so on, which is totally conform with the special The heating capacity range of the WHP requirement of the heat pump water heater compressor is from 1kw to 20kw. system. Including residential and commercial WHP compressors R134a and R417a refrigerant for choice. For the international market These compressors could endure wide range running condition to make sure the system can High effi ciency small-sized compre ssor, 60Hz work under lower flow rate in winter and high electric supplier compressor flow rate and high load condition in summer. Above models have now been put into mass The output water temperature could reach production or in technical balancing in our 55℃ or even higher to meet the requirement of customer lab.

Shanghai Hitachi Electrical Appliances Co., Ltd.

Add: No.1051, Yunqiao Road, Export Processing Zone, Jinqiao, Pudong, Shanghai, China Post Code: 201206 Director: Zhu Qi Tel: 86-21-50554560-3310 Fax: 86-21-58991948

52 CEAM - April - 2011 Compressor

Company milestone

Dec.1989 Company was formed Dec.1993 Taiwan factory started mass production Dec.1996 Certified IS0-9001 Oct.2001 China(Huizhou) factory started production Feb.2002 Rechi started to issues share for listing Sep.2002 China(Humen) started production Aug.2003 Rechi shares started trading.(TSE) 3 Nov.2006 China(Qingdao) started production Apr.2008 Taiwan factory was ISO14001certified Oct.2009 DC compressors started at Qingdao

1

Product ——AC/DC Motors

Product ——Rotary Compressor

2 4

Product ——Controller & Product Lines For Compressor Outdoor Module

RECHI PRECISION CO., LTD.

No.943 Cheng Kung Rd. Sec. 2, Kuan Yin Hsiang, Taoyuan Hsien,328 Taiwan , Republic of China Tel:886-3-4837201 Fax:886-3-4839794

CEAM - April - 2011 53 Compressor

Xi’an Qingan Refrigeration Equip­m­ efficiency standards. Presently, the co­ 300­W-15000W (1000BTU- 51180BTU). ent Co., Ltd. (called Qingan Refrigeration mpany has annual production capacity of Qingan Refrigeration, over the years, has for short) is a stock company held 5 million compressors. established a well recognized brand-name by Qingan Group Co., Ltd. (called Focusing on technical development in the refrigeration industry and posses a Qingan for short). Qingan has over and innovation, Qingan Refrigeration strong market share both at home and thirty years of technical development is striving to keep pace with the abroad. and manufacturing experiences in air international advanced refrigeration te­ Qingan Refrigeration is a national- conditioning compressors (ACC), mainly chno­lo­gy. The products meet all the level technology center and workstation manufacturing high-efficiency & energy- national energy conservation standards of post-doctoral experts approval by saving rotary ACC. The company is located and are characterized by high efficiency, the Ministry of Personnel. We are also in Qingan Refrigeration Industrial Park high reliability, low noise and low one of the undertakers of Secretariat of Xi’an Hi-tech Industry Development vibrations. The company has launched of Subcommittee on Component Parts Zone. The Company has assets equal to products that represent the advanced for Household Electrical Appliances RMB 1.18 billion and employees over technology in compressor manufacturing of National Standardization Technical 1300 people. The Company’s structures industry, such as DC driven compressor, Committee on Household Electrical are organized as follows: Planning & new environment-friendly medium te­ Appliances. It has established a com­plete Development Department, Finance mperature compressors, high EER (en­ quality assurance system and environ­ Department, Sales Department, Company ergy efficiency ratio) air conditioning mental management system that has been Office, Quality Department, Logistic compressors, T3 working air conditioning certified by ISO9001 International Quality Department, Manufacture Department, compressors, horizontal compressors and System and ISO14001 Environmental Assembly Plant, Fine Process Plant and 5HP series air conditioning compressors. Management System respectively. The R&D Department. The development All series of compressors have adopted compressors, the main product of the and production comprises of the fixed the most advanced design, production and company, has passed CCC security speed compressors, AC and DC inverter testing standards with emphasis on high certificate, and the exported products compressors, CO2 Heat pump water efficiency, environmental protection and have passed all the relevant international heater (HPWH) compressors and energy conservation. Qingan Refrigeration certificates, including CE, TUV, UL and Dehumidification compressors, totaling will also undertake to develop compre­ CB. QINGAN brand air conditioning over 200 specific models. All models sso­rs according to customers’ specificat­ compressors have also been honored as a are in line with the new national energy io­ns, within refrigeration range from China Top Brand product.

R410A Compressor

Refrigerating Electric Development Refrigerant Electric Source Model Capacity Volume EER Authentication Insidepath Capacity Status W BTU/Hr 1PH 115V YZG- Mass- R410A 2460 8400 8.20 3.00 50/250 UL TUV CE 101 60HZ A082Y2D2 production 1PH 220-240V YZG- Mass- R410A 2700 9220 11.3 2.95 25/450 TUV CE 112 50HZ E27RAY2 production 1PH 220-240V YZG- Mass- R410A 8000 27300 32.3 2.95 65/450 TUV CE 139 50HZ L80RY2 production 1PH 208-230V YZG- R410A 4850 16550 16.5 3.00 60/450 UL Small Batch 121 60HZ F165RY2D2

54 CEAM - April - 2011 Compressor

1

YZG-E27RAY2 Outside View

2 3

YZG-L80RY2 Outside View YZG-F165RY2D2 Outside View

Xi’an Qingan Refrigeration Equipment Co., Ltd.

Add: No.9 Gaoxin Second Road, Western New High-Tech Industrial Development Zone, Xi’an, Shaanxi, China Post Code: 710075 Contact: Guo Jun Tel: (86-29) 88489550 (sales) (86-29) 88331226 (planing) Fax: (86-29) 88331208 Http: //WWW.qing-an.com E-mail:[email protected]

CEAM - April - 2011 55 PART 3: HVAC Motor

HVAC Motor

Main Manufacturers Air Conditioner Motor

Air Conditioner Motor

Production capacity growth rate slowed down that obvious; even in the months after the refrigeration year, there Affected by the economic recovery in 2010, the demand from were still a lot of orders from downstream.(Chart1) home and abroad rose signifi cantly. Some air conditioner motor According to statistics, in 2010 China air conditioner motor enterprises in China have started to plan expansion in production sector achieved historic breakthrough in both volume and amount; capacity, while the scope has been slowed down compared with the output in the whole year reached as high as 209.6 million the last two years. Statistics showed that by the end of 2009, the units, exceeding 200 million units in the fi rst time in history, up total production capacity of China air conditioner motor sector 48.22% year on year, which was also the highest growth in the exceeded 238 million units; although the market demand had past fi ve years. rose substantially, the pressure of excess capacity still existed, in addition, with the further concentration of air conditioner motor Domestic Sales: Characteristics of seasons are not sector, the enterprises were cautious about production capacity obvious expansion, and mainly the fi rst-tier motor enterprises and new Currently, China air conditioner motor sector still carries on ones took some actions. the business mode of production on the base of sales, and the production of the enterprises basically is decided by the orders. Output increased by 48% year on year The reason for the substantial growth of China air conditioner In 2010, the overall operation of air conditioner motor sector motor output in 2010 was the support from downstream orders, was obviously better than previous years. It is reported that with which indicated the demand from domestic market played a key the gradual improvement of global economy, the recovery of air role. According to the statistics of ChinaIOL, China domestic conditioner sector was more obvious, especially after the Spring sales of air conditioner motor in 2010 reached 169.53 million Festival of 2010, with the leaps and bounds of household air units, up 52.07% year on year. (Chart2) conditioner sector, the demand for air conditioner motor realized In addition, due to the infl uence of seasonal characteristics signifi cant growth; most motor enterprises had orders full in many of production and sales of air conditioner, air conditioner motor consecutive months, some even operated fully—loaded, but still sector also shows obvious busy season and off season; the period in short supply to the demand from downstream. In previous from March to June every year is normally the busy season of years air conditioner motor sector had obvious busy season and production and sales of air conditioner motor sector, while after off season, while in 2010 the distinction between the two was not July until the end of the year it is the off season for this sector. The

Chart 1 China air conditioner motor production scale Chart 2 Monthly evolvement of China air conditioner contrast from 2006 to 2010 (Unit: 10k sets) motor domestic sales from 2009 to 2010

25000 0.6 1800 0.5 1600 20000 0.4 1400 2010 2009 15000 0.3 1200 East0.2 China 1000 Y-O-Y 10000 0.1 800 0 600 5000 -0.1 400 0 -0.2 200 2006 2007 2008 2009 2010 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: ChinaIOL Unit: 10k sets Source: ChinaIOL

CEAM - April - 2011 57 Air Conditioner Motor

situation in 2010 was different from previous years. As shown in conditioner; this kind of motor has early development and low Chart 2, the domestic sales of air conditioner motor in July did technical content, therefore most air conditioner motor enterprises not drop signifi cantly, and rebounded rapidly after reached a low in China mainly use AC motor. While brushless DC motor is used point in August. In the last a few months of 2010, the domestic in inverter air conditioner, which is technically advanced. This sales of air conditioner motor continued to increase, nearly the kind of technology is mastered by Japanese-invested enterprises same to that in busy season, therefore the seasonal characteristics at fi rst; China domestic enterprises developed late and do not were not obvious, which was in sharp contrast with the same have advantages among market competitions, while after two period of previous years. years of development, brushless AC motor is gradually accepted by more and more air conditioner enterprises. (Chart4) Exports: back to normal AC motor still dominated China air conditioner motor market After the downturn in 2009, China air conditioner motor in 2010. According to statistics of ChinaIOL, the domestic export market fi nally came back to normal in 2010. According sales of air conditioner AC motor reached 118.82 million units, to statistics, air conditioner motor exports totaled 40.07 million accounting for 92.8% of the total sales, while brushless DC motor units, up 33.89% year on year. In addition, the export market only accounted for 7.2%. Nevertheless, brushless DC motor of air conditioner motor has obvious seasonal characteristics as performed impressively in China domestic market, with sales domestic sales market. As showed in chart 3, the exports started exceeding 12 million units in the fi rst time in 2010 and market to increase in March, reached the highest points in April or May, share rising from 7.2% to 5.9% of 2009. began to fall after the period, and recovered after two to three months of downturn, with volume increasing month on month. Prediction (Chart3) In January 2011, China air conditioner motor sector did not In the aspect of regional distribution of exports, the overseas slow down operation with the approaching of the Spring Festival demand of air conditioner motor mainly cames from America and still kept high operation. According to statistics, the output of and Asia. According to statistics, China air conditioner motor January reached as high as 21.23 million units, up 41.3% year on exports to America totaled 12.53 million units, up 80% year year, which is rare in traditional off season. Facing high demand on year, and the exports to Brazil increased by 483.5% year on from downstream air conditioner plants, most motor enterprises year; the exports to Asia reached 22.35 million units, up 21.68% showed optimistic about the development of this sector in 2011. over previous year. In addition, the demand for air conditioner In addition, in the aspect of product structure, the market of motor from Asian market was still high; although the demand brushless DC motor is more promising. It is reported that with increase of Thailand, Japan and Malaysia was not obvious, and the upgrade of China air conditioner energy effi ciency standard, in certain areas even showed a slight decline, the demand from as well as enhancement of energy-saving and eco-friendly India increased signifi cantly, which boosted the overall exports awareness of consumers, China inverter air conditioner market of air conditioner motor to Asia. will keep relatively high momentum, therefore the development speed of brushless DC motor will exceed that in 2010, and Brushless DC Motor: market share increased grow faster and faster; with more and more brushless DC motor Currently air conditioner motor generally used in China products developed by China domestic air conditioner motor market can be divided into AC motor and brushless DC motor. enterprises are launched in the market, the market share of this AC motor is normally used in ordinary fi xed frequency air product will also increase further.

Chart 3 Monthly evolvement of China air conditioner Chart4 Proportion of China AC and DC air conditioner motor export market from 2008 to 2010 motor from 2009 to 2010

500

450 2010 7.2% 92.8% 400 350 300 250 200 150 100 2009 5.9% 94.1% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2009 2008

0% 20% 40% 60% 80% 100%

Unit: 10k sets Source: ChinaIOL Source: ChinaIOL

58 CEAM - April - 2011 Air Conditioner Motor

Guangdong Welling Motor Manufacturing Co., Ltd., also healthily, stably and rapidly. Welling Motor is always active to known as Micro-Motor Division of Welling Holding Limited offer high quality and innovative micro-motor products to the (Hong Kong Stock Market listed company, code: 00382). market. Now “Welling” has been recognized as the “China Top Welling Motor currently owes two production bases in Shunde, Brand” and “Guangdong Top Brand” by the National Quality Guangdong and Wuhu, Anhui respectively, with 9,000 employees Inspection Bureau. and facility of 240,000 square meters. The professional and Facing the new economic environment and on the advanced equipments from U.S., Denmark, Japan, Korea and base of keeping the current motor manufacturing business Taiwan provide the company with great competitiveness. Today, professionalized and in large scale, Welling is making the greatest Welling Motor has become one of the world’s biggest micro- efforts to develop into the best, internationalized and all-round motor manufacturers with annual capacity of 120 million units. motor manufacturer in the world, making Welling to be a well- Since the establishment, the company keeps growing known brand in the world.

3.3“ 42Fand 48F

Single-phase asynchronous motors Single-phase asynchronous motors feature shell structures, capacitor feature shell structures, capacitor operation, and are widely used operation, and are widely used in ventilation and air discharge in indoor/outdoor units of HVAC facilities of HVAC equipment and equipment. home appliances such as kitchen apparatuses.

56F Motors for Duct indoor unit

These three-phase asynchron o- These motors are used in fan coil us motors feature shell structures, units or outdoor unit fans of small and are widely used in HVAC and household air conditioners. commercial cooling facilities.

Guangdong Welling Motor Manufacturing Co., Ltd.

HD Add: No.27 Xingye Road, Beijiao Industrial Park, Shunde Area, Foshan City, Guangdong Province, CHINA 528311 American Offi ce: 300 Legacy Dr. #1636, Plano, TX 75023,USA Tel: 001-214-909-7983 +86-757-2260-7670 Fax: 001-214-660-5768 +86-757-2633-9911 Website: www.welling.com.cn E-mail: [email protected], charles. [email protected]

CEAM - April - 2011 59 Air Conditioner Motor

Located on Taihu Lake and Delta area of Yangtze River and service to satisfy its customers. Special Economy Developing Zone, Changzhou Sinjun Motor It has achieved the certification of ISO 9001 quality man­ Co., Ltd. is an exporter who is specialized in motor design, agement system. All of its products are CCCs and CE app roved manufacturing and marketing. Its total employees are over than and many of them are exported to oversea market. 600 people including 50 plus engineers who are working on Advocating the corporate spirit of “Unity, Integrity, R&D. Its production capacity is over than 8 m units per year, Dedication and Innovation” and following the HR principle of which mainly serve to Midea, Chigo, AUX, Tsinghua Tongfang “appointing people on their merits and developing people”, it Artificial Environment Co. Ltd., Zhejiang King Refrigeration will provide every employee with fair opportunities and both Industry Co.,Ltd., Zhej]ang Dunan Artificial Environment Co., sides get great development. Ltd., Shuangliang Group, Dezhou Yatai Group and LGA of Looking forward,Sinjun Motor will lead the development Korea. lts products are widely used in commercial and residential trend of China fractional HP fan motor by focusing on products HVACR industry. With advanced winding and inserting machine, and management innovation, expanding products lines and market automatic lathe and assembling line and complete inspection share. It will get sustainable growth by improving comprehensive equipment, it can consecutively provide high quality products strength and core competitiveness.

1 Frame A B C*D L L1 L2 Size 11.5 φ12 90X80 90 470 100 80 L 13.5 φ14 70X80

L1 B L1 11.5 φ12 72X100 13.5 φ14 70X100 95 470 100 80 L2 B L2 70X105 通风孔 H 72X94 11.5 φ12 100 75X108 470 100 80 CXD 13.5 φ14 11.5 φ12 105 72X100 470 100 80 13.5 φ14

1. Single-phase Capacitor-running Fan Coil Motor

Description:

• Voltage 100-240V, Frequency 50/60 Hz, Output Watts 4-150 W, Can design per customers’ requirement • Low noise, high quality ball bearing from world-wide or domestic well-known suppliers • Application range at C200-C400 (GBFP34-FP238), 0-100Pa to meet customers’ requirement • Ni-coating for shaft, Plastic plating or E-coating for shell • Optimized design per customer’s requirement to get best performance. Outline Dimensions

60 CEAM - April - 2011 Air Conditioner Motor

2 A

E

C F

2. Steel Packed Fan Motor for Air-conditioner

Description:

Optimized design, several mounting endshield. Good structure design, high efficiency, low temperature rise, low vibration and noise. Outline Dimensions

Item A B C D E F

Dimension 90-250 8~15 15~35 146~176 6~9 M5-12

3 470

100 100 12 12 11.5 11.5 L ? ? 100 L1

4-? 5.5 100 72

3. DC Brushless Motor for Fan Coil Unit

Description:

Low noise; Energy saving by more than 90% versus PSC motor; Wide variable speed range and programmability control Outline Dimensions

Changzhou Sinjun Motor Co., Ltd.

No. 15, Chuangxin Road, Luoyang Town, Jiangsu, China Tel: 0086-519-89607889 Fax: 0086-519-88527392 E-mail: [email protected] Web: www.sinjunmotor.com

CEAM - April - 2011 61 Air Conditioner Motor

RBC China Image Beloit Corporation Management (Shanghai) Co., Ltd., which Regal Beloit is a leading global manufacturer of electric possesses the whole right to manage and develop business of motors, motion control solutions and power generation, which Regal Beloit in China. headquarters in Wisconsin, USA and has 46 manufacture facilities and 12 engineering centers around the world. Regal Beloit holds Our seven Chinese manufacture bases are: many famous brands like Marathon, Leeson, Lincoln, Fasco Wuxi Hwada Motor Co., Ltd. etc. Sales in 2008 was $2.3 billion, and got award of 400 top Changzhou Regal-Beloit Sinya Motor Co., Ltd. companies by Forbes. Morrill Motors (Jiaxing) Co., Ltd. Shanghai Marathon-Genxin Electric Co., Ltd. Nowadays, Regal Beloit has seven manufacturing factories Shanghai Jakel Electrical Machinery Co., Ltd. with over 4500 employees in China. We produce and sell motors, Shanghai Regal-Beloit and Jinling Co., Ltd. power generators and gear boxes. Its region headquarter is Regal Elco (China) Co., Ltd.

1

Highlight products Electronic Commutated Motor (ECM) serves the indoor blower maker for the almost all residential HVAC systems and commercial air distribution systems.

Features:

• ECM X13, 2.3, 3.0, 5.0 series for different application • Rated output power 1/5, 1/3, 1/2, 3/4 and 1Hp • 120V/ 240V/277V, 50/60Hz AC input as option • Integrate control module, constant airfl ow or torque, var iable speed, very low noise, high effi ciency (up to 80%) • ECM toolboxTM based programming software, self-dia gnosis funtion • Wide speed range from 200-1300RPM and even up to 1800RPM • Single or dual shaft, with/without mounting base • NEMA 48 frame size • UL and CSA recognition

62 CEAM - April - 2011 Air Conditioner Motor

2 ARKTIC SSC2 unit bearing motors are primarily used in commercial refrigeration evaporator fan applications, but can be used in many applications demanding high effi ciency and dependability with output ratings between 2 – 38 watts.

Optimize your performance All of our ARKTIC SSC2 unit bearing motors can be sold with a variety of mounting brackets and fan blades in order to optimize airfl ow and system effi ciency.

Features

• Special total enclosure unit bearing design, low noise • Effi ciency up to 80% • Speed Range: 800 – 3600 RPM • Same speeds even with different power system frequency • Keep stable speed even power system voltage ripple • Voltage: 115 (90-132) or 208-230 (180-264) V Single Phase • Output: 2 – 38 watts • Effi ciency: ~66% peak • Speed Range: 1000 – 3600 RPM • Speeds: 1 (constant speed) • Rotation: CW or CCW (determined from the lead end of the motor)

3 Split RAC BLDC Motor Split RAC BLDC Motor are primarily used in residential air conditioner fan drive applications, but can be used in many applications like water heat pump demanding high effi ciency, low noise and dependability with output ratings between 10 – 25 watts for indoor motor and 10-50w for outdoor motor.

Features

• 220VAC/310VDC input voltage • Integral control, sinusoidal wave design, low noise • Effi ciency up to 75% • Speed Range: 400 – 1300 RPM • Overheat, over current and over voltage protection as option

Changzhou Regal-Beloit Sinya Motor Co., Ltd.

http://www.sinyamotors.com Add: No.25, Hengluo Road, Henglin County, Wujin District, Changzhou, Jiangsu, China Post Code: 213101 Tel: (86-519) 8849 1806 Fax: (86-519) 8879 8887

CEAM - April - 2011 63 PART 4: Refrigerant

R22 (HCFC-22) R410A(R125, R32) (HFC-125, HFC-32)

Main Manufacturers Refrigerant

R22 (HCFC-22)

Production Capacity: highly con- HFC-125, PTFE and other downstream 18% of the total production; those used centra ted products. In 2010, the demand of HCFC-22 as raw material of PTFE and HFC-125 HCFC-22 is one of the most widely as both air conditioner refrigerant and reached 0.16 million tons, accounting used and important refrigerant products raw material had signifi cant growth. On for 33% of the total production; the rest for refrigeration and air conditioner one hand, the rapid development of air used in blowing agent, other refrigeration equipments. China is the most important conditioner sector offered huge support; equipment refrigerant and fl uorine product producer and user of HCFC-22. According on the other hand, the increase of demand accounted for 15%. (Chart3) to statistics of ChinaIOL, in 2010, the for R410A new refrigerant promoted the production capacity of HCFC-22 in China demand for HCFC-22. In addition, the Exports: stable reached 0.65 million tons, up 6.25% year demand for fl uorine resin and fl uorine Since 2008, China HCFC-22 exports on year. rubber (including PTFE) became another (HS29034910.12) kept high, basically HCFC-22 production bases are ma- driving force. The export demand which is more than 0.16 million tons. The exports in ly in Zhejiang, Jiangsu, Shandong, Sic- stable every year is also quite important. in 2010 reached 164,200 tons, a record huan and Jiangxi, among which Zhejiang In 2010, the exports of HCFC-22 reached high of nearly 5 years, but only up takes nearly 35% of the total production about 0.16 million tons, accounting for 1/3 1.39% year on year. With the decline capacity, Zhejiang, 29%, Shandong 25%. of the total production; the volume used of HCFC-22 production capacity in the Dongyue, Shandong, Meilan, Jiangsu in household air conditioner refrigerant world, and market demand for HCFC-22 and Juehua, Zhejiang are the three lar_ got about 90,000 tons, accounting for repair amount, the exports have remained gest enterprises of HCFC-22 in China, accounting for 55% of the total production capacity. (Chart1) Chart 1 China HCFC-22 production capacity dis- Supply: tight tribution in 2010 In the recent years, the growth of HCFC-22 output in China is general.

In 2009 the output reached 0.45 million Sichuan Jiangxi tons; in 2010, it got 0.485 million tons, up 8% 3% Zhejiang 7.33% year on year, with the same growth Shandong 35% rate as production capacity. 25% In the fi rst half of 2010 China HCFC-22 market supply kept stable. From August, Jiangsu the supply began to be tight. The reasons 29% for the tight supply are as following: fi rst, with the coming of summer, the Source: ChinaIOL limitation on electric usage on production in the South hindered the operation of Chart 2 HCFC-22 production capacity and output from the enterprises; affected by the emission 2006 to 2010 (10k tons) reduction target, some enterprises reduced operation rate. Second, in October several 70 100% large ente rprises carried out equipment 60 50 80% maintenance, resulting in low load of 40 overall operation; subjected to insuffi cient 30 60% raw material chloroform, some enterprises 20 also reduced production. (Chart2) 10 0 40% 2006 2007 2008 2009 2010 Supply: increase Production Capacity Output HCFC-22 can be used not only as refrigerant, but also raw material for Source: ChinaIOL

CEAM - April - 2011 65 Refrigerant

stable. Japan, Korea and the United States Chart 3 HCFC-22 application distributions in 2010 have been the important HCFC-22 export countries of China. In 2010 China exports Others to the three countries were 25,500 tons, 15% Exports Household 34% 20,200 tons and 12,500 tons respectively, AC Refrigerant accounting for 35% of the total exports. 18% Japan and Korea realized growth year \ on year, but the exports to the United R125 States dropped slightly. In the aspect of PTFE Production Production 12% continent, Asia is still the main region 21% for China HCFC-22 exports, accounting for 68% of the total exports in 2010. (Chart4) Source: ChinaIOL

Price: climb up In 2010, HCFC-22 stopped the Chart 4 29034910 export evolvement from 2007 to downturn situation of 2009; its price 2010 (Unit: 10k tons) continued to rise from 11,000 Yuan/ton 18 10% from January to more than 20,000Yuan in 16 8% December, reaching a new record high in 6% 14 6 years since 2005. The price evolvement 4% 12 of HCFC-22 in 2010 can be divided into 2% several stages, while the driving forces 10 0% for the price rising of every stage are 8 -2% different. 2007 2008 2009 2010 At the beginning of 2010, which should Exports Y-O-Y be the off season of refrigerant, HCFC-22 Notes:29034910——Other methane, ethane and propane market did not show characteristics of halogenated derivatives only with fl uorine and chlorine, including off season; the supply became tight and HCFC-22 the price continued to rise, from 11,000 Source: China Customs Yuan/ton in January to 15,300 Yuan/ton in March, up 4,000 Yuan/ton. The price rising situation maintained till early Chart 5 Weekly average EXW price trend of R-22 in March. In this period, the demand for bulk in South market (Unit: Yuan/ton) air conditioner refrigerant was high, but 35000 the supply of raw material chloroform 30000 was tight, which limited the operation of 25000 enterprises, therefore the price rose. 20000 From the middle part of March 15000 10000 to the beginning of July, the price of 5000 HCFC-22 began to drop slowly, from 0 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 15,300 Yuan/ton in March to 13,500 Yuan/ton in middle July. In this period, 2011 2010 2009 2008 the supply and price of hydrofl uoric acid Notes: the data is the EXW price in bulk in East China and chloroform were stable, plus the good operation situation of the enterprises, Source: ChinaIOL the price of HCFC-22 dropped slowly. Starting from July, the price of HCFC-22 rebounded sharply once more, from disaster of some regions in South, the equipment maintenance; therefore the 13,500 Yuan/ton to more than 20,000 supply of hydrofl uoric showed problems, operation reduced which caused the Yuan/ton at the end of November, and and the price began to rise. In July, due to decreasing supply. The short supply reaching 22,000 Yuan/ton in the middle the hot weather and electric usage limitation of chloroform and reduction of export part of December. In December the rising in Jiangzhe region, the operation of the raw materials were also a constraint to rate was the largest, up 3,000 Yuan/ton, enterprises was hindered. From September the production of HCFC-22. Factors and the monthly rising rate reached about to November, the enterprises were still such as raw material and supply 1,500 Yuan/ton. restricted by energy saving and emission pushed the price rising of HCFC-22. From the end of June, due to the fl ood reduction target, and they began the (Chart5)

66 CEAM - April - 2011 Refrigerant

R410A (R125, R32) (HFC-125, HFC-32)

At present China is still affected by The production capacity concentration output of HFC-125 in China reached about the restriction of R410A patent. The of HFC-32 is more signifi cant, with half 23,000 tons, while in 2010 it realized production, sales and patent right of in Jiangsu, and the rest in Zhejiang and around 40,000 tons, up 74% year on year. R410A and other mixed eco-friendly Shandong. (Chart1/2) In 2010 the output of HFC-32 realized refrigerants are in the hands of only a 35,000 tons, up 75% year on year. small number of enterprises: DuPont, Supply: continue to be tight The existing production capacity Honeywell and Daikin. Therefore, alth- In 2010, the demand for new re- of China could meet the demand, but ough China domestic refrigerant en t- frigerant R410A from air conditioner the overall operation rate is not high. e r pri ses do not have any problems in enterprises rose rapidly, which caused the According to statistics of ChinaIOL, technology, they cannot produce R410A tight supply of HFC-125 and HFC-32 in the overall operation rate of HFC-125 legally, which limits the supply of R410A. China market. sector in 2010 reached about 57%, while Let’s learn more about R410A market According to ChinaIOL, in 2009 the that of HFC-32 was also only 60%. through the analysis of the market of HFC-125 and HFC-32 in 2010.

Production Capacity: increase sig- Chart 1 HFC-125 and HFC-32 production capacity nifi can tly contrast from 2009 to 2010 (Unit: k tons) In 2010, facing the high demand of R410A, the supply of HFC-125 80 and HFC-32 was very tight. Under 70 the stimulation of high demand and 60 50 high profi t, refrigerant sector set off an 40 investment boom. In 2010 the production 30 20 capacity of HFC-125 rose from 42,000 10 tons of 2009 to 69,200 tons of 2010, up 0 HFC-125 HFC-32 about 64% year on year; the capacity of HFC-32 also rose from 39,500 tons of 2009 2010 2011 2009 to 50,500 tons of 2010, up 28%. The production capacity concentration Source: ChinaIOL of HFC-125 and HFC-32 is very high. The production capacity of HFC-125 is mainly Chart 2 HFC-125 production capacity distributions in 2010 in Jiangsu, Zhejiang, Shandong and Shaanxi, among which Jiangsu takes 43% of the total, mainly from 3F, Zhonghao and Meilan, Jiangsu; Zhejiang accounts for around 25%, mainly from Sinochem Lantian, Yonghe Fluorochemical, Jinhua, Juhua, Zhejiang and Yingpeng. The main enterprises in Shanxi include Dongyue, Shandong and China Fluoro, Shandong. Sinochem Lantian Xi’an base is also an important enterprise of this product, accounting for 12% of the total production Source: ChinaIOL capacity.

CEAM - April - 2011 67 Refrigerant

On one hand, the technical limitation HFC-125; in addition, the electric usage Demand: rise hinders the operation rate of HFC-125 limitation and energy-saving and eco- With the speed up of HCFC-22 to some extent; on the other hand, the friendly requirement of regions in 2010 phase-out, increase of new refrigerant increase of applications of HCFC-22 as also is one reason for low operation rate. air conditioner export demand, rapid raw material also restricts the operation of (Chart3) development of inverter air conditioner and increased application of R410A on commercial VRF, the demand for R410A increases signifi cantly. According to statistics of ChinaIOL, in 2010 China household air conditioner Chart 3 HFC-125 and HFC-32 production capacity output reached 97.792 million units, with contrast from 2009 to 2010 (Unit: k tons) 25.2743 million units used R410A new 45 refrigerant, accounting for 25.89% of the 40 35 overall household air conditioner output, 30 25 up 378.91% year on year. On the basis 20 of 1kg R410A for each equipment, the 15 10 amount of R410A needed reached 25,000 5 0 to 30,000 tons. HFC-125 HFC-32 On one hand, the exports of new

2009 2010 refrigerant air conditioner in China have increased signifi cantly. The demand Source: ChinaIOL from Europe, Japan recovers and has substantial growth; the demand from the United States has also increased. On Chart 4 Detailed classifi cation Proportion of China the other hand, the output of inverter refrigerants for household air conditioner from 2008 air conditioner increases greatly, and to 2010(Unit:%) the demand from domestic market has rose signifi cantly. According to statistics

100% of ChinaIOL, in 2010 China inverter 90% 80% household air conditioner output reached 70% 60% about 16.5 million units, up 104.2% year 50% on year; the domestic sales of inverter 40% 30% household air conditioner realized 11.41 20% 10% million units, accounting for 22.1% of 0% the total domestic sales of household air 2008 2009 2010 conditioner. R-407C R-410A R-22 Central multi-split air conditioner product also becomes an important app- Source: ChinaIOL lication product of R410A. Currently nearly all multi-split air conditioner use R410A refrigerant. According to statistics Chart 5 Exports of HFCs mixed refrigerant from 2009 of ChinaIOL, the sales of China multi- to 2010 (Unit: ton) split air conditioner increased by about 27% in 2010. 3500.00 Compared with HFC-125, the dem- 3000.00 2500.00 and growth for HFC-32 slightly eased. 2000.00 (Chart4) 1500.00 1000.00 Exports: concentrate in export regions 500.00 0.00 In 2010 the exports of HFCs products Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec increased substantially. The exports of 2010 2009 HFCs mixed refrigerant (H.S. Code: 38247800) was also a driving force for Notes:38247800—Containing perfluorocarbons (PFCs) the growth of market demand. China or hydrofluorocarbons (HFCs), but not containing Customs’ data showed that in 2010 the chlorofl uorocarbons (CFCs) or hydrochlorofl uorocarbons (HCFCs) (including R410A) total exports of HFCs mixed refrigerant reached 31,600 tons, up around 52% year Source: China Customs on year. Starting from March of 2010 the

68 CEAM - April - 2011 Refrigerant

monthly exports have been kept more 125,000 Yuan/ton at the end of 2010. The ton. (Chart7) than 2000 tons, and reached as high as reason for this rising was the reduction In 2010, facing with replacement of 3100 tons in June. of supply source due to the production air conditioner refrigerant, the demand Thailand, Japan, Korea, Russia and problems of the enterprises and the tight for R410A from air conditioner sector Malaysia are the main export countries supply of raw material HCFC-22. The was very urgent. The demand from of HFCs mixed refrigerant of China, with price of HFC-125 rose by three times inverter air conditioner development and combined export volume accounting for from the beginning of 2010 to the end of product export growth will continue to 50% of the total. In the aspect of export 2010. support the development of R410A. With continent, Asia is the major export region, The performance of HFC-32 was also the expansion of HFC0125 production with export volume reaching 19,000 tons well in 2010, with price rising steadily. capacity, the market supply of R410A in 2010, accounting for 60% of the total The EXW average price of HFC-32 in will ease. As an important raw material of exports; Europe is the second largest export bulk in East China market rose from refrigerant and HFC-125, HCFC-22 will continent, with export volume of 7,000 166,600 Yuan/ton at the beginning of infl uence the overall refrigerant market; tons, accounting for 22% of the total. 2010 to 31,200 Yuan/ton at the end of the application expansion as raw material The exports of HFC-125 and HFC- 32 2010, nearly doubled, and the average will support the market of HCFC-22 reached the record high in 2010. According monthly growth rate kept 1,300 Yuan/ products to a certain extent. to statistics of China Customs, in 2010 the exports of HFC-125 of China totaled about 15,000 tons, doubled year on year. The exports of HFC-32 reached around 9,600 tons, up about 10% year on year. Japan, the Netherlands and the United States are the top three export countries of HFC-125 and HFC-32 of China. The total exports of HFC-125 to the three countries Chart 6 Export evolvement of HFC-125 and HFC-32 reached 9,700 tons, accounting for 80% from 2006 to 2010 (Unit: ton) of the total exports; while the exports of HFC-32 to the three countries totaled 18000 7,000 tons, accounting for 83% of the 16000 14000 total exports. (Chart5/6) 12000 10000 8000 Price: increase in double 6000 4000 The demand for R410A has a sig n- 2000 ifi cant growth, which causes the price 0 HFC-125 HFC-32 rising of the product. The price of R410A rose from about 40,000 Yuan/ton at the 2006 2007 2008 2009 2010 beginning of 2010 to more than 100,000 Yuan/ton at the end of 2010. The price Notes:29033990—Fluorinated, brominated or iodinated de evolvement of R410A is refl ected by the rivatives of acyclic hydrocarbons(including HFC-125\HFC-32) price change of HFC-125 and HFC-32. Source: China Customs Under the infl uence of market demand, sources of supply and raw material price change, the price of HFC-125 in 2010 rose, then dropped and rose again. At Chart 7 Average price of HFC-125/HFC-32/R410A in the beginning of 2010, the EXW average East China market(Unit:10k Yuan/ton) price of HFC -125 in bulk in East China market reached 32,000 Yuan/ton; driven 16 by the export demand and demand for 14 mixture, the price of HFC-125 continued 12 to rise from February to April, and reached 10 a record high of 68,000 Yuan/ton in the 8 6 middle of this year; the overall market 4 offer was a bit of confusing. Starting from 2 May, with the expansion of production 0 J-08 A-08 J-08 O-08 J-09 A-09 J-09 O-09 J-10 A-10 J-10 O-10 J-11 capacity, the supply source increased, HFC-125 HFC-32 R410A Costs R410 Price which eased the tight supply HFC-125, so the price began to drop. In August the Source: ChinaIOL price rose again, from 59,000 Yuan/ton to

CEAM - April - 2011 69 Refrigerant

Founded in 1987, Shandong Dongyue SNAP Plan., DY3 as a new environment better supplier of many famous companies at Chemical Co., Ltd has become the friendly refrigerant which was researched home and abroad, including Dupont, Daikin, biggest environment friendly refrigerant independently gained the international Mitsubishi, Haier, Hisense, Gree, Midea, base in the world. The market share of unified code and was awarded Chinese Changhong, Chunlan etc. “Dongyue” main product of environment friendly outstanding patent, became the main green environmental protection refrigerant refrigerant is up to 40%, which takes 40% force of domestic refrigerants substitution. honorably win “China famous brand”. We of export quantity in the same industry During passed years, depending on the were conferred successively “ national also. Viewing to Green and Environmental guarantee of series of authentications of May 1st labor award”, “ civilization protection, we R & D successfully series ISO9002,ISO14001,ISO10012 and UL unite of shandong province”, “model of Dongyue-Tsinghua Green Refrigerants and the advantages on scale, science and unite of enterprise culture and industry by powerful combination with Tsinghua technology, brand and culture, Dongyue informalization”, and were indentified University. The series of product gained Chemical Co.,Ltd had entered successfully state emphasis hi-tech enterprise and “National S&T Innovation award”, also home electric appliance, automobile, new material industrialization backbone been approved to popularize by USA pharmacy, and Electron industries, become company.

DYR-5:

A refrigerant to replace R-22 and R-417. Technical Characters: Environment-friendly. Non-toxic and non-flammable. Energy saving and a high refrigeration speed. Drop–in No need to change any unit, pipeline and producing line of original systems.

1 2 3

DYR-3(R439A): R425A:

A refrigerant to replace R-410. A refrigerant to replace R-22 and R-407. Technical Characters: Environment-friendly. Technical Characters: Environment-friendly. Non-toxic and non-flammable. Energy saving Non-toxic and non-flammable. Energy saving and a high refrigeration speed. No need to and a high refrigeration speed. Charged directly. change any unit, pipeline and producing line of No need to change any pipeline, unit and original systems. producing line of original systems.

70 CEAM - April - 2011 Refrigerant

R32:

It is used as a refrigerant to replace HCFC-22.

5

4 6 R134a: R22:

It is used in refrigeration and air-conditioning It is used in reciprocating compressor as a system as a refrigerant, including automotive refrigerant in air-conditioning system of industry, air-conditioning, refrigerator, Central air- commerce and house. It can also be used as conditioning, commercial refrigera­tion etc. It a aerosol propellant in pesticides and spraying can also be used as a aerosol propellant, flame paint, to process fire-extinguishing agent (1211). retardants and foaming agent in products of It is the basic material of a wide variety of medicine, pesticide, cosmetics, cle­anout etc. fluorinated macromolecular compounds.

R152a:

This product is used mainly in the fields of refrigerants, aerosols, foaming agents etc., it is also the main raw material of mixtures and permanent substitution of R-12. The export situation of R-152a is good in the fields of hair sprays, air fresheners, pesticides as a aerosol and propellant.

9 7 8 R142b:

R125: It is used mainly as a foaming agent to replace CFC-11 in polyurethane sandwich It is an important part of mixtures as a plates production of industrial and commercial refrigerant to replace R-502 and R-22. It can refrigeration, it can also be used as a refrigerant also replace Halon-1211 and Halon-1301 as a in high-temperature heat pumps and in fire-extinguishing agent. air-conditioning of steel enterprises high- temperature workshops to replace CFC-12.

Group Office Export Marketing Dept.

Tel: (0086)533-8510072 Tel: (0086)533-8221599 Fax: (0086)533-8520204 (0086)533-8210513

CEAM - April - 2011 71 Refrigerant

Established with the valuable assets 98% share of interests, is a National Hi- Chemical & Science Co., Ltd., Zhejiang from Juhua Group Corporation and went tech Enterprise and one of the largest Lanxi Juhua Fluorochemical Co., public in June 1998, Zhejiang Juhua manufacturing base of fl uorochemical Ltd., Zhejiang Jubang Hi-tech Co., Co., Ltd. is primarily engaged in the raw materials in China. Ltd., Zhejiang Quzhou Jutai Building production and sales of the chemical The company has total assets of 4.2 Materials Co., Ltd., Zhejiang Jusheng raw materials and their down-stream billion RMB and 23 subsidiaries and Fluorochemical Co., Ltd., Zhejiang products in fl uorochemical, chlor- branches, wholly-owned, held with KAISN Fluorochemical Co., Ltd. and alkali, sulfuric acid and other chemical majority shares or with share par- Zhejiang Quzhou Lianzhou Refrigerant industries. It has 18 production plants ticipation, including Zhejiang Quhua Co., Ltd. as well as an R&D center. Its with state-of-the-art technologies in the Fluor-chemistry Co., Ltd., Electro- product portfolio includes more than 80 world. Zhejiang Quhua Fluor-chemistry chemical Plant, Sulfuric Acid Plant, products of four categories, exported to Co., Ltd., held by the company with Fluoropolymer Plant, Ningbo Juhua 30+ countries and regions.

Products Available

1,1,1,2-tetrafl uoroethane 1, HCFC-22 (HFC-134a) 1 The refrigerant F22 of Zhejiang Juhua Co., Ltd. 1,1,1-trifl uoroethane (HFC143a) has been named Famous Brand of China. Difl uoromethane (HFC-32) Pentafl uoroethane (HFC-125) Chlorodifl uoromethane (HCFC-22) Hexafl uoropropane (HFC-236fa) Heptafl uoropropane (HFC-227ea) Refrigerant products in aerosol cans PTFE Suspension Molding Powder 2, HFC-134a PTFE Medium size Particle Resin PTFE Free Flow Resin Environmental-friendly Refrigerant HFC-134a PTFE Fine Powder Resin HFC-134a from Zhejiang Juhua Co., Ltd. PTFE Dispersion is made under the licensed proprietary technologies of Showa Denko K. K., Japan. The 2 process is state-of-the art and the technology FEP well-developed, yielding top quality product that meets the product standards of leading Poly(Vinylidene Fluoride) (PVDF) enterprises in the world and has passed the Octafl uorocyclobutane (C-318) SGS certifi cation. Hexafl uoropropylene (HFP) Industrial Methylene Chloride

ZHEJIANG JUHUA CO., LTD.

ADDRESS: Kecheng District, Quzhou, Zhejiang, 324004 P.R. China TEL: +86 570 3098686 +86 570 3096345 FAX: +86 570 3091301 E-mail: [email protected] http: // www.jhgf.com.cn www.jhgf.cn

72 CEAM - April - 2011