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SPECIAL EDITION Air Conditioner www.ChinaIOL.com

The GLOBAL Display Platform for China Electric Appliance Manufacturer 2011

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

Air Conditioner Motor

57 Air Conditioner Motor

59 Welling

60 SINJUN

62 Regal-Beloit Sinya

Refrigerant

65 R22 (HCFC-22)

67 R410A (R125, R32)

(HFC-125, HFC-32)

70 DONGYUE

72 JUHUA

Inserted Front: Midea

Inside Back Cover: Haier

Back Cover: Welling

Title Page: GMCC

P 21 Heat Pump Water Heater

P3: Yonghe

P5: HIGHLY

P6: ChinaIOL

P41: Hisense

Index of Advertisements

2 CEAM - April - 2011

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

Address: 619B xinyijiayuan, Chongwenmen Waidajie,

Chongwen District, Beijing

Code: 100062

Website: ChinaIOL (www.ChinaIOL.com)

Editorial Phone: 010-6708 1838/1920 -821

Advertisement Phone: 010-6708 1838/1920 -822

Fax: 010-6708 1718

Beneficiary: Beijing Zhixindao Consulting Co., Ltd.

Account Bank:

Branch in Xuanwu District of Beijing Rural Commercial Bank

Bank Account: 1901000103000003388

Issue Date: 18th of each month

Price: 5$

CEAM

PART1: AC & HPWH

Household Air Conditioner

Residential Central Air Conditioner

Water Chilling Unit

Heat Pump Water Heater

Main Manufacturers

Air Conditioner

Production Capacity China household air conditioner pr-

oduction capacity in 2010 reached about 140 million units, accounting for 75% of the global capacity. (Chart 1)

Due to various reasons such as transportation, resources, economy and human resources, the household air 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 factors, the production capacity originally 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 effort on building their own brands. In China, Midea and Gree will continue to expand; the production base of Aux in Tianjin will start operation, and the production base of Chigo in Zhengzhou is also scheduled. (Chart 2/3)

Production and Sales From 2006 to 2009, the production

and sales of China household air conditioner wandered around 60 million units. In 2010, the scale achieved a historic breakthrough, with both production and sales exceeding 90 million units, up more than 50% and 40% year on year respectively.

Household Air Conditioner

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Source:ChinaIOL

Source:ChinaIOL

Chart 1 China household air conditioner production capacity distribution in 2010 (%)

Chart 3 China household air conditioner production and sales evolvement from 2006 to 2010 (10k units)

With the issue of a series of policies such as “Energy-saving and Benefi ting to the People”, the production resources of China air conditioner enterprises grow tighter and tighter. In addition, the enterprises also need to put more efforts on developing new products with higher energy effi ciency, such as inverter air

conditioner. The factors such as weather, policy

and economy stimulated the demand for air conditioner from home and abroad. The output of twelve China domestic household air conditioner manufacturers monitored by ChinaIOL increased by 30% to 70% year on year, including ten with


Air Conditioner

Enterprise China Overseas Production Capacity

China

Gree Zhuhai Hefei Chongqing Brazil Pakistan Viet Nam 2660

Midea Shunde Wuhu Wuhan Panyu Viet Nam 2370

Haier Jiaonan Hefei Dalian Chongqing Wuhan Viet Nam 1230

Chigo Foshan Zhengzhou 1030

Aux Ningbo Nanchang Tianjin Chengdu 850

Hisense-Kelon Shunde Qingdao Huzhou 800

Galanz Zhongshan 650

Chunlan Taizhou 500

TCL Zhongshan Wuhan 450

Changhong Mianyang Zhongshan Indonesia 365

Shinco Changzhou Nigeria 350

Yuetu Wenzhou 300

Japan

Panasonic Panyu 400

Fujitsu Shanghai 200

Sharp Shanghai Thailand 200

Mitsubishi Electric

Shanghai 100

Sanyo Foshan Shenyang 120

Hitachi Wuhu Shanghai 110

Mitsubishi Heavy

Industries

Jiangmen 60

Daikin Shanghai 50

Korea

LG Tianjin Korea …… 1490

Samsung Suzhou Korea …… 1000

Daewoo Tianjin 100

Europe Airwell Shenzhen 80

Total 15465

Source:ChinaIOL

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

CEAM - April - 2011 9

Air Conditioner

Continent 2010(10k units) Proportion Y-O-Y 2009

(10k units) Proportion

Asia 1589 37.50% 54.16% 1031 36.97%Latin

America 976 23.02% 103.31% 480 17.21%North

America 706 16.66% 6.28% 664 23.83%

Europe 561 13.23% 78.35% 314 11.27%

Africa 323 7.61% 44.98% 223 7.98%

Oceania 84 1.98% 10.48% 76 2.73%

Total 4238 100.00% 52.02% 2788 100.00%

Chart 6 China household air conditioner exports by continent from 2009 to 2010

Source:China Customs

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Chart 5 China household air conditioner export trend from 2006-2010(10k units)


Notes:HS codes include:84151010/84151021/84151022/84158110/84158120/84158210/84158220/84158300, similarly hereinafter.

50% increase. The output growth rate of domestic brands was higher than that of foreign-invested ones; the output of Gree and Midea all exceeded 25 million units, with combined output accounting for 53% of the total, which showed obvious advantages. (Chart 4)

The statistics showed that in 2009 the domestic sales of China household air conditioner in the fi rst time exceeded exports; in 2010 the domestic sales exceeded more than 50 million units over exports. Factors such as weather, policy and economy stimulated the demand from domestic market and enhance the business expectations of air conditioner enterprises.

In 2010, Gree and Midea all scored some achievements in the air conditioner market; Gree led in the domestic market while Midea’s performance in exports was in no match; Chigo, Aux and Galanz followed closely to the national policy, stepping up research and development on high effi ciency products such as inverter ones, and they also performed well in export market. The foreign-invested brands mainly focused on high-end market in China; as the production base of overseas exports, their developments were relatively stable. Facing fi erce competitions in China domestic market, the foreign-invested brands must intensify efforts on the development and promotion of inverter air conditioner to join the competition; or they can give up China domestic market to focus on overseas market.

Exports

Affected by the global economic crisis in 2009, China household air conditioner exports declined signifi cantly. In 2010, due to the hot weather, economic recovery and low channel inventory, the exports rebounded sharply, exceeding 40 million units, more than that in 2006 to 2008. (Chart 6)

In 2010, China household air con-ditioner exports to the fi ve continents all recovered, among which the exports to Latin America doubled, the exports to Europe and Asia increased by more than 50%, and the exports to Africa also increased by nearly 45%.

Signifi cant recovery showed in major markets, and emerging markets continued

Source:ChinaIOL

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Chart 4 Proportion between China air conditioner do-mestic sales and exports from 2006 to 2010(10k units)


Air Conditioner

Chart 7 China inverter air conditioner developments from 2009 to 2010(10k units)

Source:ChinaIOL

to grow, all of which were the main characteristics of China household air conditioner exports in 2010. The growth of Latin America was mainly stimulated by Brazil, Argentina and Mexico; the substantial growth in Asian market on one hand was due to the recovery speed of Asian economy being faster than that of Europe and America, one the other hand was because that Asia has the largest population in the world therefore its air conditioner market has huge potential; the exports to Africa reached a new record high, and showed long term of growth room.

The competition around China ho-u seh old air conditioner exports is very fi erce. In 2010, the top fi ve air conditioners enterprises according to the exports accounted for 60% of the total 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 production from Japan to China, and 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 ranked No.1 in Africa.

Characteristics of Product

Inverter Air conditionerBefore 2009, China inverter conditio-

ner mainly was for exports, more than 70% to Japan, Europe, etc; the enterprises producing this kind of product were mainly Japanese-invested, among China domestic brands, only Hisense had some exports. The demand from overseas was relatively narrow, and the overseas market reached high degree of maturity, therefore China inverter air conditioner production scale grew slowly. In China domestic market, due to high costs and high price, inverter air conditioner product has absolute disadvantages compared with

fi xed frequency ones, therefore it has been marginalized by the market for more than ten years. (Chart 7/8)

The implementation of China inver-ter air conditioner national standard from 1st September of 2008 ended the embarrassing situation of inverter air conditioner energy-effi ciency level without basis to follow. Midea started to change strategy fi rst to seize inverter air conditioner market, and Hisense, Gree and other enterprises followed afterwards.

In 2009, the rising of access threshold for fi xed frequency energy effi ciency brought a huge product transformation reform—the fi xed frequency air conditioner with low energy effi ciency and most market share was forced out of the market by policies; fi xed frequency air

conditioner with high energy effi ciency and inverter air conditioner took the market and performed outstandingly in China domestic market.

According to the statistics of China-IOL, in 2010 China inverter air conditioner sales totaled 16.44 million units, up 104% year on year, nearly all of which were DC inverter air conditioner. 69% of inverter air conditioner produced in China was sold in domestic market, and 31% was for exports. The growth of exports kept stable, with about 20% of annual growth rate. The sales in domestic market showed rapid growth, nearly doubled in 2010. The sales of Midea inverter air conditioner reached 4.61 million units, accounting for 28% of the total market share, the No.1 in the industry; Gree, Panasonic and Haier followed afterwards.

Source:ChinaIOL

Chart 8 China inverter air condition er sales proportions in 2010(10k units)

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Inverter Fixed Frequency


Air Conditioner

New Refrigerant Air ConditionerChina household air conditioner

mainly uses R-22 as refrigerant. In 2010, 70% of China household air conditioner used R-22 refrigerant, and the rest 30% used R-410A. The number of R-410A air conditioner tripled compared with the last two years; the reasons for the growth are as following: the fi rst, the scale of DC inverter air conditioner production expanded, and nearly all of them used R-410A; the second, the usage of new refrigerant among fi xed frequency air conditioner also increased substantially. From 1st January of 2010, United States banned the imports of air conditioner with R-22 as refrigerant, therefore, the exports of new refrigerant air conditioner in 2010 greatly enhanced. The recovery of European economy and relative stability of Japanese market have created opportunity for the exports of new

refrigerant air conditioner and inverter air conditioner. (Chart 9)

Currently, the inverter air conditioner production of China enterprises is relatively large, and the product export scale to North America is also large, therefore, the new refrigerant air con-ditioner products of other enterprises will increase more. In the aspect of new refrigerant product of various enterprises, Midea, Gree and Haier have the largest number of this kind of products.

R-410A air conditioner has unique advantages in improving energy effi cie-ncy and environmental protection, there-fore, most air conditioner enterprises have started the match between fi xed frequency air conditioner and R-410A refrigerant from 2010.

In the recent years, the refrigerant alternative direction has been a hot spot in the industry. Currently the production of

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R-22 R-410A R-407C

R-410A has formed certain scale. As For R290 natural refrigerant, air conditioner enterprises have been researching and developing the technology. There are only small amount of R290 air conditioner products; Gree has a production line for R290 air conditioner, and a few products are exported to Europe.

In June 2009 China started to implement the project of “Energy-saving and Benefi ting to the People”, therefore the energy effi ciency upgrade of China air conditioner accelerated. In May 2010, air conditioner with more than the second level of energy effi ciency had taken nearly half the market, especially those with second level of energy effi ciency. With the rising of the energy effi ciency standard once more, the air conditioner with the fi rst level of energy effi ciency was launched on the market in June 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 the main force in the market; driven by “Household Appliance Going to the Countryside” policy, the product with the third level of energy effi ciency had a signifi cant advantage.

The reasons that high effi ciency energy-saving household air conditioner achieved such rapid development in China market are as following: fi rst, the national policy guidance; second, the positive response from domestic enterprises; third, the lower and lower price of energy-saving air conditioner product; the fourth, the more rational consumption of the customers.

Development PredictionAccording to the prediction of the

market capacity for the next fi ve years by ChinaIOL, in a longer period of time in the future, the development trend of China air conditioner industry will tend to be stable; although it does not rule out call-back situation in certain year, the basic direction is continuous growth. The inverter air conditioner will continue to expand, and in 2015 the inverter air conditioner capacity of China domestic market is expected to reach 50%. (Chart 10)

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Source:ChinaIOL

Chart 9 China household new refrige rant air conditioner development from 2008 to 2010(10k units)

Chart 10 China household air conditio ner market scale prediction (10k units)


Air Conditioner

Industrial LayoutWith economic development an d ri-

s i ng c o n sumption level, China resident-ial central air conditioner sector boomed, changing into an essential air conditioning equipment of buildings from “luxury” item. From 2004 to 2008, the sales of China residential air conditioner realized 10% to 20% of growth. The huge consumer demand as well as local preferential investment conditions attracted older residential central air conditioner ent-erpri ses of USA, Japan and Korea to set up plants in China, and got main market share in China residential central air

54%42%

1%3%

East China South China North China Others

Residential Central Air Conditioner

Enterprise/Production Base East China South China North China Others

China

Chigo FoshanTsinghua Tongfang Wuxi Beijing

Midea ShundeHaier QingdaoGree ZhuhaiAux Ningbo

Japan

Panasonic GuangzhouSanyo Dalian

Mitsubishi Heavy Industries-Haier QingdaoMitsubishi Heavy Industries Qingdao

Mitsubishi Electric ShanghaiHisense-Hitachi Qingdao

Fujitsu WuxiToshiba Shanghai GuangzhouDaikin Shanghai

USAYork Guangzhou

Trane Taicang ZhongshanMcQuay Shenzhen

KoreaSamsung Suzhou

LG Tianjin

Chart 2 China residential central air conditioner enterprises production bases distribution

Source:ChinaIOL

Source:ChinaIOL

Chart 1 China residential centr al air conditioner industrial layout in 2010 (according to the distribution of output value)


Air Conditioner

conditioner market. (Chart 1/2)In the aspect of output value dis-

tribution, enterprises with large sales scale such as Daikin, Hisense-Hitachi, Mitsubishi Electric and Mitsubishi Heavy Industries-Haier all have built plants in East China, which makes the distribution scale of output value in this region exceeding other regions; South China owns plants of Midea, Gree, York and McQuay, with output value of residential central air conditioner only second to that of East China; Only LG and Tsinghua Tongfang have production bases in North China, and the output value and production capacity of the two enterprises are all relatively small.

China residential central air conditio-ner enterprises are originally evolved from main household air conditioner enterprises, and Midea, Gree, Haier and Chigo still are the main forces for the development of residential central air conditioner. Besides, Tsinghua Tongfang, as one of the enterprises with the most comprehensive strength in China arti-fi cial environment fi eld, owns not only production base of residential central air conditioner, but also production base of central air conditioner (Beijing) and gas air conditioner (Langfang).

Production and SalesDuring the fi ve years from 2006 to

2010, the market sales of China residential central air conditioner basically kept about 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 and consumer recognition are essential for the residential central air conditioner development. In 2010, when the en-terprise, product and consumer have become mature, the market demand became the decisive factor for the development of this product under the infl uence of macroeconomic situation. After a slight decline in 2009, China residential central air conditioner sector rebounded, recovered and even showed growth under new momentum in 2010, with sales amount up 28% year on year, exceeding that in 2008.

China domestic market is the main battlefi eld for residential central air conditioner; its domestic sales keep

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Source:ChinaIOL


Source:ChinaIOL

Chart 3 China residential central air conditioner market scale from 2006 to 2010(Unit: 0.1 billion RMB)

Chart 4 China residential central air conditioner domestic sales and export from 2006 to 2010(Unit: 0.1 billion RMB)

Chart 5 China residential central air conditioner export amount from 2006 to 2010(Unit: 0.1 billion RMB)


Air Conditioner

Source:ChinaIOL

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Roof Unit Ducted Unit VRF

Chart 6 China residential central air conditioner export statistics by type (Unit: 0.1 billion RMB)

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Roof Unit Ducted Unit VRF Residential Water System

Chart 7 China residential central air conditioner sales amount by product from 2006 to 2010(Unit: 0.1 billion RMB)

Source:ChinaIOL

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Inverter Digital Fixed Frequency

Source:ChinaIOL

Chart 8 VRF sales amount by category from 2008 to 2010(Unit: 0.1 billion RMB)

arount 88%, while the exports only account for 12%. In China residential central air conditioner market, foreign-invested brands take most of the market share, and domestic enterprises only take about 32%, which in 2010 rose by 4 percentage points. The sales of the top fi ve residential central air conditioner enterprises in China domestic market accounted for more than 60% of the total sales, and this proportion rose year on year in the recent fi ve years; in 2010 this proportion reached 68%, including three domestic enterprises and two Japanese-invested ones. The Japanese-invested enterprises had slight advantage; Midea, Gree and Haier all achieved substantial growth in 2010, especially Gree.

ExportsThe proportion of China residential

central air conditioner exports accounted for 12% of the total sales, basically keeping at around 3 billion Yuan. The exports reached a peak in 2007 and 2008; although resuming rapid growth in 2010, the exports did not reach historic record. In 2010, exports and domestic sales kept the same growth rate. (Chart5)

Domestic and Japanese-invested en t e rp ris es are the main force of resi-dential central air conditioner exports. The exports of domestic enterprises account for 75%; Midea, Gree and Haier are three largest domestic enterprises for residential central air conditioner exports, with export distribution rate of 60% to 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 are OEM. Facing fi erce competition in domestic market, China residential central air conditioner enterprises will continue to put attention on overseas market.

Characteristics of ProductMulti-split unit is the main type of

China residential central air conditioner. From 2006 to 2010, the market share of multi-split unit has been keeping more than 50%, and increased year on year; in 2010 the market share of Multi-split unit exceeded 60%. (Chart7)

The market share of unit residential central air conditioner including roof


Air Conditioner

unit and ducted units kept stable, about 1/3 of the total in fi ve years. Residential water system (including residential water unit and small module water chiller) is highly comfortable to use, but has very high requirement for design, installment and maintenance; in addition, this kind of product is more complicated than multi-split unit and unit air conditioner, and its price lacks of competition, therefore among the fi erce competition of residential central air conditioner sector, its market share dropped signifi cantly.

Overall, the energy effi ciency of unit residential central conditioner and multi-split unit is relatively high. Enterprises put more effort on the research and development of multi-split unit, therefore this kind of product has high energy effi ciency. The energy effi ciency of unit residential central air conditioner is relatively low, and there is huge disparity of energy effi ciency level of the products of enterprise itself as well as among other ones. At present residential water system lacks the appropriate national standard and management system of energy effi ciency, coupled with the insignifi cant energy saving effect of the product itself, it cannot even be listed for the tender when project of the government and party A has some requirements. With the energy effi ciency labeling system further stipulating the production and 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 increased year by year, with more than 85% in 2010. The proportion of digital Multi-split unit was relatively stable, basically around 12% in three years. The proportion of fi xed frequency multi-split unit has dropped year on year, less than 3% in 2010.

Characteristics of BrandStatistics for 2010 still showed that in

China residential central air conditioner market Japanese-invested brands took the most of market shares, while the gap between domestic brands and Japanese-invested ones was shrinking gradually. (Chart9)

The largest domestic brands in

41%

46%

6% 2% 5%

Chinese-Invested Japanese-investedAmerican-invested Korean-investedOthers

China residential central air conditioner are Midea, Gree and Haier; the sales of TCL, Aux and Tsinghua Tongfang cannot match the three giants. Japanese-invested brands, including Daikin, Mitsubishi Electric, Mitsubishi Heavy Industries, Hisense-Hitachi, Toshiba, Panasonic, Fujitsu and Mitsubishi Heavy Industries-Haier, have kept stable development; their target sales area is obviously China domestic market, remaining around 45% of market share which slightly dropped in 2010 due to the strong development of China domestic brands. LG and Samsung, as two major Korean-invested brands, are large corporation enterprises; residential central air conditioner is only one of their business departments and it is not the most advantaged, therefore it gets limited attention within the corporation, which has affected its development. American-invested brands, represented by York, Carrier, Trane and McQuay, mainly promote residential water system; due to the limitation of the product itself, its market share is relatively small.

The market of China residential central air conditioner is polarized: Midea, Gree and Haier take 80% of the overall market share of domestic brands by virtue of their scale advantages and extensive distribution channels, and this proportion has been growing with the expansion of the enterprises, which has caused great

pressure to small brands. The positioning of domestic brands is relatively weak compared with Japanese-invested ones; their sales are found among construction project, retail, large scale chain project, as well as normal household, commercial and even industrial site. Besides, since 2009 domestic brands began to actively join in the government procurement list or “Energy-saving and Benefi ting to the People” project list, as well as responding positively to the policy on energy effi ciency label, which offered a strong guarantee for their products selling to the government projects.

Japanese residential central air con-ditioner brands show pyramid pattern, with Daikin at the top, Hisense-Hitachi in the second place, and the rest follow. The style of product, technology and sales of Japanese-invested brands is the same, and the competition among them is very fi erce. Residential water unit, ducted unit and digital Multi-split unit are the mainly products of American-invested brands. Residential water unit sales in the current China market is unsustainable; with the shrinking of its market scale, consumer awareness of this kind of product does not increase. Small air cooling water unit and ducted unit have some potential in China domestic market. The development of digital Multi-split unit is plain and there is no major growth.

Source:ChinaIOL

Chart 9 China residential central air conditioner brand classifi cation in 2010


Air Conditioner

Source:ChinaIOL

Source:ChinaIOL

Production DistributionStable economic development and

government’s investment on transporta-tion, education, health care and infrastruc-ture have promoted the development of China water chilling unit sector. In 2010 the sales of China water chilling unit reached about 20 billion Yuan, and the manufacturers mainly concentrated in East China (including Zhejiang, Shanghai, Shandong, etc) as well as South China (mainly Guangdong). (Chart1/2)

China water chilling unit enterprises can be divided into American-invested brands, domestic ones and Japanese-invested ones. And the overall pattern is 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-invested water chilling unit enterprises developed in early stage show advantages in China market, accounting for more than 50% of the market share.

After several years of development, the product structure of China water chilling unit sector has been mature, with rare new products. Some enterprises upgrade the technology of the existing products, or supplement their production lines. In addition, the diversifi cation of the application of this kind of product is more and more apparent, such as ice cooling storage, water source heat pump, special unit for nuclear power and waste heat recovery unit, and the sales aim to meet various demands.

Water Chilling Unit

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Chart 1 China water chilling unit production base distribution (according to the sales amount of enterprises)

Chart 3 China water chilling unit market scale from 2006 to 2010 (Unit: 0.1 billion RMB)

The development of water chilling unit is affected by the fast growth of sales of residential central air conditioner. Residential central air conditioner, esp-ecially VRF, is applied in the tra ditional education and research facility, medial industry, hotel, plant, as well as offi ce building, and it takes certain market share. While the booming real estate market becomes a huge cake for residential

central air conditioner sector. Among small and middle scale projects even some large ones, water chilling unit and residential central air conditioner carry out fi erce competition.

Production and SalesIn the past fi ve years, the sales of

China water chilling unit kept growth rate of 14% to 15%; in 2010 the sales


Air Conditioner

amount reached nearly 20 billion Yuan. (Chart3/4)

The central air conditioner product in China market is divided into large water chilling unit and residential central air conditioner (not including CRAC, water chilling cabinet unit, roof unit, clean air conditioner, and some professional GSHP) by ChinaIOL. According to the sales performance of the two categories of products in China market in the past several years, the market potential of residential central air conditioner was further explored; its application area was expanded, sales rose steadily, and its proportion in the overall central air conditioner market increased, thanks to the active expansion of the sales channel. Channel expansion did not work for water chilling unit. The target construction

project of large water chilling unit was long in time, which had high requirement on the capital capacity of the dealers and technology support of the central air conditioner enterprises.

The impact of macroeconomic situation is huge on the ups and downs of water chilling unit market. The financial crisis from the end of 2008 to 2009 caused the shrink or delay of market demand for water chilling unit, especially the decrease of large project affected deeply to the sales of centrifugal unit and screw unit. In addition, the target market of water chilling unit was under the influence from residential central air conditioner in a certain range. In various projects such as sport center, air port, railway transportation hub, workshop and plants, water chilling unit had irreplaceable

Brand East China South China North China Others

Chinese-invested

Aux Ningbo,Zhejiang

DunAn Zhuji,Zhejiang

Gree Zhuhai,Guangdong

Guoxiang Shangyu, Shanghai/Zhejiang

Haier Qingdao,Shandong

Jirong Jieyang, Guangdong

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

Japanese-invested

Daikin Shanghai

Ebara Yantai, Shandong

Hitachi Guangzhou, Guangdong

Sanyo Dalian, Liaoning

Sinko Shanghai

American-invested

Dunhan-Bush Yantai, Shandong

Carrier Shanghai

McQuay Shenzhen,Guangdong Wuhan, Hubei

Trane Taicang, Jiangsu

York Wuxi,Jiangsu Guangzhou, Guangdong

Korean-invested LS Qingdao,Shandong

Chart 2 China water chilling unit enterprise production base distributions

Source:ChinaIOL

advantages.China water chilling unit enterprises

manly target domestic market, account-ing for 30% of the domestic market share, while exports only account for 12% of the total sales. In the past two years domestic brands have kept fast development, reaching 39% of growth rate in 2010, higher than that of the general domestic sales of the sector. Among domestic brands, Tica of Nanjing grew rapidly, with sales amount ranking No.1; Midea and Gree also developed fast, doubled year on year; the sales of Shenling, Jirong and DunAn also realized high growth.

ExportsThe export proportion of China

water chilling unit accounted for 12% of the total sales, with amount keeping


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at 2 billion to 3 billion Yuan. From 2007 to 2010, the exports declined once affected by overseas economic situation, rebounded in 2010, but not back to the previous level.(Chart5)

In the aspect of water chilling unit 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 addition, Europe, America and Australia are also the main export regions. The exports of Carrier to India and Hong Kong have reached the most; McQuay mainly exports to Italy, India, Hong Kong, etc; Singapore, India and UAE are the main export countries of York; Trance mainly exports to Malaysia, India, etc. As for absorption water cooling unit enterprises, the export business can expand to lots of countries; except Asia, Europe and America, Middle Eastern countries had energy advantages, where the energy saving effect of absorption water chilling unit is more visible.

Facing with overseas orders with relative high profi ts, lack of capacity, technology and export channels all signify the weak export competitiveness of domestic water chilling unit enterprises. At present the main domestic enterprises of water chilling unit exports are Broad, Shuangliang, Midea and Tica. In 2010, the exports of Shuangliang and Midea realized outstanding growth. India, Malaysia, Singapore and Hong Kong were the largest consumption regions of China water chilling unit. (Chart6)

The export product of China water chilling unit sector is mainly centrifugal chiller, with York, Carrier, Trance and McQuay as representative enterprises; Broad and Shuangliang mainly export absorption water chilling unit; Midea and Tica have some exports of air conditioner terminal unit; in addition, Midea also has some exports of screw unit.

Product and BrandSince 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 years. Besides, the market of centrifugal

0

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Source:ChinaIOL

Source:ChinaIOL

Chart 5 China water chilling unit export amount from 2007 to 2010 (Unit: 0.1 billion RMB)

Chart 6 China water chilling unit export product structure in 2010

Source:ChinaIOL

0

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100

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Chart 4 China water chilling unit domestic sales and exports from 2006 to 2010(Unit: 0.1 billion RMB)

water chilling unit was also growing. Scroll type/piston type, absorption type and air conditioner terminal also kept stable development. (Chart7)

The competition of central air conditioner market is very fi erce. The

application of VRF and scroll module unit in small and middle offi ce building projects continued to increase, and extended to hospital, large and middle scale commercial building and offi ce building, which divided the demand for


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screw water chilling unit. Screw water chilling unit is divided

into air cooling screw unit and water cooling screw unit. The application of water cooling scroll unit is diversifi ed and elaborated; air cooling screw unit is generally applicable; the performance of air cooling screw unit is weak. There are 78% of water cooling unit among screw water chilling unit sector. At present the evaporator generally used in water cooling screw unit is divided into three categories: fl ooded type, dry type and falling fi lm type. Flooded evaporator takes the largest proportion; dry evaporator is less used; the heat exchange effect of falling fi lm evaporator is prominent, but only a few enterprises have such products.

The cooling capacity of a single screw water chilling unit ranges from tens of standard tons to 600 standard tons, manly used in middle-scale construction project with areas under 50,000 square meters. The screw unit of most enterprises is 100 standard tons to 500 standard tons in cooling capacity, which can be used as the host machine of GSHP; the host machine of ice storage system generally uses centrifugal unit or screw unit with larger cooling capacity.

At present China screw water chilling unit enterprises is mainly divided into two categories: the fi rst is self-supply type; these are screw water chilling unit enterprises who produce screw compressor by themselves and only for internal use, represented by York, Trane, McQuay, Carrier and Dunham-Bush of 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 then assemble the product, represented 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 screw compressor to carry out OEM of

screw unit for other small water chilling units. Among domestic brands, Midea and Tica were outstanding in screw water chilling unit sector; Midea’s performance increased signifi cantly, ranking No.1 among domestic brands in 2010; Tica began to stand out in 2009.

The pattern of absorption water chilling unit enterprises is relatively fi xed; the main enterprises include Broad, Shuangliang, Ebara, Carrier, Sanyo, LS, Hitachi, Tongfang Kawasaki and Shenlan of Sichuan, nearly all of which have carried out cross-product even cross-fi eld businesses. Broad started contract energy management in 2007; Shuangliang carried out boiler sales and the latest desalination project; Sanyo had gas heat pump and vacuum boiler products; the electric refrigeration products of Guangzhou Hitachi, LS and Carrier took certain market shares. Enterprises no longer took absorption water chilling unit sales as the only source of revenue.

Centrifugal unit, as the type of water chilling unit which is the most advanced in technology, is applied in large or super large high-end construction project. The sales of centrifugal unit product of LS and Daunham-Bush have achieved considerable progress followed the four largest American-invested brands; Midea and Gree of Chinese-invested brands also have had a huge improvement in sales. Scroll/piston unit are suitable for small and middle scale project. The brand pattern is relatively dispersed, and the quality of the product is clearly classifi ed; this category

of product is highly fl exible and has huge development potential. In 2010 Midea and Gree realized the fastest growth; Tica kept high sales amount; other domestic brands also sold this category of product, such as Tsinghua Tongfang, Aux, Chigo, Shuangliang, Tica, DunAn, Guoxiang, Jirong, Shenling, etc.

Air conditioner terminal product includes package air handling units, commonly known as air conditioning tank, and fan coil unit (not including new air unit). This kind of product is essential, and has more robust market compared with host machine. It has low technical content and price, therefore it can be sold in bulk to increase performance when the market is booming; during recession the project owner can reduce the host machine procurement expenses, and the manufacturers of host machine would decrease sharply the price, while the terminal product would have a small range of drop in price due to limited price reduction. The main manufacturers of terminal product are foreign-invested brands; the market share of domestic brands is less than 20%, including Midea, DunAn, Shenling, Tsinghua Tongfang, Jirong, Gree, Haier and Guoxiang. Midea has plants in Guangdong and Chongqing; its Guangdong plant manly produces fan coil unit, while Chongqing plant produces air condition tank as well a small amount of fan coil unit. In 2010 the sales of air conditioner terminal product of Midea achieved the highest growth.

Source:ChinaIOL

Chart 7 China water chilling unit sales amount by product from 2006 to 2010 (Unit: 0.1 billion Yuan)


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Production Distribution Chinese water heater market has 4

major types of products: electric water heater, gas water heater, solar water heater and heat pump water heater. Different products are experiencing a different stage of development. The market share of electric water heater is shrinking year by year. Due to the implementation 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, solar water heater has already stepped into a track of steady growing. The heat 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,


Enterprise East China South China North China Changling Shunde, Guangdong

Deron Panyu, GuangdongGree Zhuhai, Guangdong

Jinjiang Lin’an, ZhejiangMedia Foshan, Guangdong

Quezheng Foshan, GuangdongTianshu Nantong, Jiangsu

Tongfang BeijingTongyi Guangzhou, GuangdongSIRAC Foshan, GuangdongYangzi Chuzhou, AnhuiZhengli Yueqing, Zhejiang

Zhongyu Guangzhou, Guangdong

heat pump water heater has a low market base and a board space of development. First, since 2003, heat pump water heater market has achieved rapid development. Second, this product is relatively safe, and is suitable for the urban market. Third, heat pump water heater has some aspects in common with air conditioners and other water heater. Being quickly driven

by brand enterprises in the air conditioner industry in China, the development of heat pump water heater will show more explosive force.

China’s heat pump water heater began their development in 2003, and are now still in the preliminary stage of development, in which the brand scale is gradually forming and a relatively

Source:ChinaIOL

Source:ChinaIOL

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

Chart 1 Regional Distribution of major enterprises of heat pump water heaters in China in 2010(by sales volume)


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stable period is maintained. The market share of 13 major enterprises of heat pump water heater has increased year by year, and has occupied about half of the whole market share. These enterprises are mainly distributed in South China, to be more specifi c, in Guangdong Province. In 2010, more than 80% sales volume of 13 major enterprises of heat pump water heater was concentrated in Guangdong Province.

The rapid growth of heat pump water heater has drawn the attention of mainstream enterprises of air conditioners and water heater both at aboard and home. In addition that some air conditioner enterprises are gradually permeating the fi eld of heat pump water heater, traditional water heater magnates and even leading solar water heater enterprises are also marching into the market of heat pump water heater.

Production and salesChina’s heat pump water heater began

their development in 2003. In recent years, it has almost doubled year on year, showing a rapid development tread. In 2010, the sales volume of heat pump water heater in China reached almost 3.1 billion Yuan. Over the past 5 years, the average annual growth rate has maintained nearly 50%. The market characteristics are as follows: .(Chart3)

1. Both commercial heat pump water heater and domestic heat pump water heater have increased synchronously. As the economy improves, the market 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 situation of synchronous development of both commercial and domestic heat pump water heater.

2. Manufacturers are developing rationally. The market share of small-scale enterprises is nibbled away. The core competitiveness dominated by brand enterprises has not taken shape, and the number of new entrants is increased.

3. The price of the product is still dropping, but at a slower pace. Due to the price rise of raw materials, it is expected that the price of heat pump water heater will fully rise in 2011.

4. The heat pump water heater market has garnered particular attention from

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Chart 3 2006-2010 market scale of the heat pump water heater industry in China (RMB 100 million)

Source:ChinaIOL

Source:ChinaIOL

Chart 4 Scale of domestic sales and export volume of China’s heat pump water heater market in 2007-2010(RMB100 million)

relevant industries. The manufacturers of air conditioners, electric water heater, gas water heater and even solar water heater have already entered or are preparing to enter the market of heat pump water heater.

5. Specialized compressors began to be used on a small scale and tended to be promoted on a large scale. The sp e-cialization of compressor will break th r-ough the technical neck in the development of heat pump water heater, and improve the performance of products.

China’s heat pump water heater mainly develops in domestic market, and the market share of domestic sales basically hovers at 80%. In recent 2 years, the export volume has increased signifi cantly. As the economy improves,

the international market has a strong demand for heat pump water heater products. In 2010, the growth rate of export volume of heat pump water heater exceeds that of domestic sales. The model of exported products has also gradually changed from large commercial units to small domestic units, and the number of countries and regions to which these products are exported also increases. (Chart4)

In recent two years, the development of heat pump water heater has entered into a rapid and relatively rational stage. The price of products fells at a slower pace; commercial heater are recovered; and the overall profi t margin of the industry is improved. However, the development in the domestic market is still limited. Heat


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0

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Domestic Commercial

Source:ChinaIOL

Source:ChinaIOL

Chart 5 Export volume of China’s heat pump water heaters in 2006-2010 (RMB 100 million)

Chart 6 Sales volume of domestic and commercial heat pump water heaters in China in 2007-2010 (RMB100 million)

years. In 2010, it was the fi rst time that the growth rate of export volumes exceeded that of domestic sales. Due to the imp-rovement of international economy and good application environment of heat pump water heater in western countries, it is expected that the export volume of heat pump water heater will keep increasing. Heat pump water heater is mainly exported to developed countries, and have relatively high requirements on quality, price and technical performance.(Chart5)

Brand enterprises including Media and Gree and trust-worthy brands of water heater have driven the exports of heat pump water heater. Media, Green and SIRAC have the big export volumes, and the exports of Gree grow most rapidly.

Quantum, a trust-worthy export enterprise of heat pump water heater, mainly exports its products to Australia. However, the protectionist policy issued by the local government damaged its export volume seriously, causing sharp decrease in its export volume. In 2010 the growth in the export market of heat pump water heater was mainly attributed to Media, Gree and numerous start-up companies. However, since many start-up companies have neither well-established sales mode in the export market nor stable customer resources, there is some uncertainties in their future development.

Heat Pump Water Heater are mainly exported to Europe, where they are supported and encouraged by relevant 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 product, heat pump water heater is also popular in the market of economically developed areas such as Southeast Asia and Middle East. Nearly 80% newly-added market of water heater in Japan is occupied by air source water heater. In Singapore, up to 70% water heater used are heat pump water heater.

EU regions are implementing “Req-uirements on Eco-Design Requirements for Energy-using products (EuP directive)” and relevant policies. Electric heating will be directly eliminated. Solar water heater, with additional electrical heating, will also be eliminated after 2011 due to its low effi ciency in additional electrical heating. After 2013, only condensing gas water heater, solar water heater with additional heating of condensing gas water heater, and heat pump products are allowed to be sold. These policies are benefi cial to export enterprises of heat pump water heater in China.

Currently, there is still a big gap between the domestic heat pump tec-hnology and the international one. For example, heat pump enterprises in Japan have already developed carbon dioxide heat pumps with good isothermal state. This kind of heat pump can produce high-temperature hot water in low-temperature conditions. The temperature of output water could reach above 100℃. In China, the research on this product is still in the

pump water heater have not been listed into the catalog of products with the support of the policy “home appliance subsidies for rural areas”. Domestic heat pump water heater is not driven by national policy. The main markets for heat pump water heater are tier-2 and tier-3 cities. The customers and consumption areas are more narrow and concentrated due to the price and local consumption level. The limitation of sales channels, living environment of big cities and inherent consumption habits all hinder the development of heat pump water heater in Tier-1 cities.

Export performance China’s heat pump water heater has a

low export base, and the export volume has maintained rapid growth in recent


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preliminary stage.

Product Characteristics

Domestic & Commercial At the preliminary development

stage of the industry, commercial heat pump water heater was once the main force for exploiting the market. Later, domestic ones developed and became the main driver of the market of heat pump water heater. The market of heat pump water heater is closely related with the economic environment, and is more flexible compared with domestic ones. (Chart6)

The sales channels of domestic heat pump water heater are diversified. Brand enterprises often adopt the mode of general regional agent. The general agent will distribute outlets at the provincial level. It is mainly centered on counties and then radiates to other places. Meanwhile, professional experience stores are established in major cities. Each end distributor has its own way. They may enter the market of building materials, or set up stores on their own. Media’s channel building has set a successful example for the industry. Enterprises including Chigo follow it closely. It has gradually become the mainstream mode of the sales channel of domestic heat pump water heater. Medium and small bands are exploiting their own modes via special community store or featured household product experience house. For example, PHNIX promotes its cold air heat pump water heater mainly via experience center. 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

ARISTON all perform well in the market of domestic heat pump water heater.

In the market of commercial heat pump water heater, Media dominated by developing domestic heat pump water heater ranks the first, followed by Zhengneng, Zhongyu, Tongfang, Quezheng and other commercial heat pump water heater enterprise. Compared with domestic heat pump water heater, commercial heat pump water heater has high price and high profit, which is a great temptation to all enterprises in this industry.

Integrated heat pump water heaterIntegrated heat pump water heater

integrates main machine and water tank, and does not need installation. It can be used just by switching on the power supply. It solves the problem that the air source water heater is difficult to be installed. Currently several enterprises have already launched such kind of products. Its advantages of being easy to install has obtained users’ affirmation, but as a whole, the reaction is calm. This is because: (1) It has no advantage in price; and (2) some technological defects still exist. They affect the promotion of integrated heat pump water heater.

Development prediction2011 is a turning point for the

development of the market of heat pump water heater. In this year, the number of heat pump water heater to be sold will exceed 1 million for the first time.

However, the problems hiding behind the rapid expansion of the market will show up successively in the next several years. A temporary adjustment period will occur during the development. Year 2011 will be a year linkinng between the preceding and the following years.

Gree and Chigo are the highlights in the fastest developing enterprises of heat pump water heater in 2011. Especially, after several years of preparation, Gree began to supply its products to its sales channels, and undertook appropriate check of product performance. The market performance will reflect it obviously. In addition, Chigo will take rapid actions in 2011. Haier has technologic advantages in both electric heating and air conditioner. Once it takes some action, it will become a strong competitor in this market.

Domestic heat pump water heater will develop vigorously in 2011. Currently, it is brand that makes an enterprise to stand firmly in the market of heat pump water heater. The warm-up made by Media, Gree and Chigo on domestic heat pump water heater enhance people’s awareness on domestic heat pump water heater has enhanced. By taking this opportunity, enterprises will gain twofold results with half the effort in promoting the domestic heat pump water heater market. Meanwhile, the export strength of domestic heat pump water heater is gradually increasing. As enterprises keep improving their product in technology, new progress will be achieved in the export market of domestic heat pump water heater.


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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

Windows

1, Through The Wall windows

2, Slide_Casement

1, M4 Portable

2, M5 Portable

Portable


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Midea’s wall mounted mult-splits are equipped with DC inverter,a scientific air conditioning system that allows a single outdoor unit to four indoor units,provides fast and accurate temperature control, outstanding energy savings ability and more quiet operation. Along with The Fresco Tech air purification technology. Midea’s multi-splits can effectively produces a 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.

Split

1, Y family

2, X Family

Floorstanding

1, S2 Floorstanding

2, J series

Midea’s floor-standing type indoor unit can be installed anywhere and fit perfectly with the room interior. It also has a lot of beneficial features to ensure high level of cooling or heating performance and air purifying operation. And like all Midea’s ACs, it saves energy, thus saving your electricity cost by about 40% compared to conventional.

Rooftop Tropical

1, MRA-36CW 1, Tropical Commercial


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• 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.CTel: 0086-757-26338888http: //global.midea.com.cn

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


Air Conditioner

Gree Electric Appliances, Inc. of Zhuhai, founded in 1991, is the world's largest air conditioner enterprise integrat-ing R&D, manufacturing, marketing and services.

Through 20 years’ development, we have vertically integrated all production value chain, producing key components such as compressor, motor, tooling mold, and capacitor. Our products are classified into 20 categories, with 400 series, and 7,000 models.

We have 8 production bases in Zh u-hai(China), Chongqing(China), Hef ei (Ch-ina), Zhengzhou(China), Wuhan(China),

Brazil, Pakistan and Vietnam, with annual production capacity of 30 million sets of residential air conditioners and 4 million sets of commercial air conditioners.

Gree enjoys a sound reputation for its product quality and performance. In China, we are the only air-conditioner brand ranked as a "World Brand" by the General Administration of Quality Supervision, Inspection and Quarantine. In addition, Gree has been ranked among the "Top 100 Chinese Listed Companies" by Fortune for 8 consecutive years,

Thanks to more than 100 million

users’ choices, our products have been sold to more than 100 countries and regions. We are the No.1 in RAC sales volume in global market since 2005.

Innovation and creativity always take the priority. By continuously cultivating strong internal R&D capabilities, we have become a role model for other Chinese enterprises, successfully developing new products which are not only ‘Made-in-China’, but innovatively ‘Created-in-China.

From ‘Made-in-China’ to ‘Created-in-China’, ’Gree, Making Better Air Conditioners!

Admiral (Inverter)

Residential Air Conditioners

1, R410A,R134a


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2, R22,50Hz

3, Tropical(T3)

Admiral

Artful (D.C.Inverter)


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4, 60Hz

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

16 SEER D.C. Inverter

Commercial Air Conditioners

GMV(VRF)


Air Conditioner

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

Air Source Heat Pump Water Heating System

Water cooled chiller

Water cooled chiller

GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI

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


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Founded in 1984, the Haier Group has been dedicated to innovation and creating a world famous brand over the past 26 years. ACG (Air Conditioning Group) consists of three branches, Residential air conditioner division, Commercial air conditioner division and Mitsubishi Heavy-Haier air conditioner division. Among these, Haier Residential air conditioner is China’s biggest manufacturing base for Freon-free DC inverter air conditioner. Commercial air conditioner has China’s most complete product categories. Mit-subishi Heavy-Haier is one of the world’s strongest enterprises with the most adv-a nced technology in energy saving, env-ironmental protecting and intelligent control.

Hair ACG is one of the world’s biggest HVAC manufacturer with full range products that provide the cooling, heating

Haier Group

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

and ventilation solution for residential, commercial and industrial application, covering MRV, MULTI, PAC, Chiller and split type, window type, cabinet type, motion type, and etc.

Professional Manufacturing Haier ACG has 16 production bases

all over the world and could satisfy consumers’ needs with speedy actions.

8 domestic production bases are located in: Qingdao, Dalian, Hefei, Wu-hai, Chongqing, Jiaonan, Huangdao and Mitsubishi Heavy-Haier.

8 overseas production bases are located in: Pakistan, Tunisia, Jordan, India, Thailand, Bangladesh, Nigeria and Algeria.

Professional DesignHaier ACG has its own central res-

earch department, which contains 46 au-th orized laboratories, including world’s leading environmental simulation lab, noise lab, EMC lab and so on.

Haier ACG has 8 research centers and 10 research partners, which are located in US, Germany, Dutch, Australia, Korea and Japan such developed countries.

Haier air conditioner has occupied the mainstream marketing channels over the world. Taking the health, the energy conservation and environmental protection as a subject, Haier ACG persists in independent innovation as well as creating users’ demand and winning the trust of users over the world with diverse products, advanced technology and consummate service. Haier ACG is aiming to create and consolidate her brand image as an expert and a leader in the industry for comfortable air and energy saving solutions.


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Window Type115 87 108 33 02 08 14 16

9000 BTU ★

12000 BTU ★ ★ ★ ★

18000 BTU ★ ★ ★ ★

24000 BTU ★ ★ ★ ★

50000 BTU ★ ★

60000 BTU ★ ★

Product No./Capacity

Wall Splite Type Floor Standing Type Portable Air Conditioner

GUANGDONG CHIGO AIR CO N-D ITION ING CO., LTD. (Listing mem-bers of the Group, Stock Code: 449.HK) established in 1994 and located in a famous Chinese industrial city Foshan. We are a big modern enterprise and mainly engage in designing, R&D, manufacturing AC as well as distributing AC domestically and internationally.

As a leading enterprise in Chinese AC industry, CHIGO’s designed annual output is 10 million sets, which includes

complete series of AC products. We are one of the biggest AC enterprises which have the most complete refrigeration industrial chain. All-in-one production strategy can meet with the diversity of global market demand and render CHIGO to keep fast development speed over many years.

Till today, CHIGO air condition e r- s w on varies strict certification in all im-portant market, including the ISO9001 Quality System Authentication, the IS-

O 14000 Environmental Management System Au t hentica tion, China Insp e-ction-free Product Certificate, China Energy-saving Product Certificate, Ch-ina Co mpulsory Certificate (CCC), UL cer tificate of the USA, CE certificate of EU, GS certificate of German, SAA safety certificate of Australia, etc. We also won the award of “Global Green En vironment-Protection Energy-Sav-in g Air-conditioning” from United Nations.

Household A/C Model Line up


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GUANGDONG CHIGO AIR CONDITIONING CO., LTD.

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

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 PUMP WATER HEATER

2, AIRCON HEAT PUMP WATER HEATER


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Galanz Group is founded in 1978, air conditioners and household appliances in Shunde and Zhongshan, Guangdong. It has 13 subsidiaries in headquarter, 52 sales offices across the country and branches in H.K, Seoul and North America.

Through extensive economic exchanges and trading with more than 100 countries and regions in the world, Galanz Group’s total output was about RMB18 billion, and import and export amount was about USD1 billion in 2006. In recent years, 40000 employees of Galanz have been dedicated to global development of its microwave oven, air

conditioner, household appliances and relevant industries.

Galanz entered into air conditioner industry since 2001 while realizing steady upgrading of microwave industry. As the pioneer in deluxe stainless steel air conditioners, Galanz found its name among strongly competitive brands in the first year when Galanz set its foot into the air conditioner and refrigerator industry. In 2004, Galanz invented light wave air conditioner, which became popular immediately. The export volume ranked among leading ones in the world and helped Galanz to become a major

producer of air conditioners in the world. In 2005, “globally largest professional air conditioner R&D base” was established in Galanz. This super-scale (3000mu) air conditioner R&D base engages in collective development and production of light wave air conditioners and became another “global champion” after the microwave oven.

Persisting to the business concept of “Greatness originates from creativity” and the business tenet of “Working hard to move customers”, Galanz is speeding its step towards a global brand and a 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


Air Conditioner

Guangdong Galanz Group Co., Ltd.

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

2, Portable Type

Model: Portable Type(D)

Capacity(BTU): 7K/9K Refrigerant: R410A/R407C

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

DC Inverter VRF system

VRF system DC Inverter modular25.5Kw/28.0Kw/33.5Kw/40.0Kw/45.0kw

Heat Pump Water cycling system

2、Chillers and Terminals

Water Cooled scroll Chiller


3.0-5.3Kw, 3.5-7.2 Kw R410A or R22


Air Conditioner

With the corporate sprit of “Relying on Human Resources and Managing by Trust”, AUX Group has been standing over 20 years and is now 1000 times larger than its initial scale. Today it has total assets over 8 billion and a staff over 30,000. The group has been engaged in four manufacturing industries: electrical power, home appliances, energy and telecommunication, and three investing areas: real estate, medical services and logistics. Moreover, it has established a three-square kilometer production base, which includes three production bases in Ningbo and one production base in Nanchang, Shenzhen and Shanghai respectively. At the same time another four production bases are in the course of being built up worldwide.

Now, AUX Group has alr-eady been one of the top 500 Chinese En terprises members, top-20 Chinese non governmental enterprises, top-25 Chinese big competitive Enterprises, Chinese leading information enterprise, Na t i onal key scientific and tech-nological enterprise. Besides, it has become the standing body of Chinese National Engineering research center and National postdoctoral work station. The group has already built developing academes in Ningbo, Shanghai, Shenzhen, and Nanchang: and has been conferred with famous brands of China: “Sanxing” and “AUX”, the latter of which is ratified as

Models Line Up 2011Model/Btu 7000 9000 12000 18000 24000

VH ★ ★ ★ ★

VP ★ ★ ★ ★

KA ★ ★ ★ ★ ★

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QN ★ ★ ★ ★ ★

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EP ★ ★ ★ ★ ★

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Model/Btu 9000+9000 9000+12000 12000+12000VH ★ ★ ★

SG ★ ★ ★

SA ★ ★ ★

Model/Btu 24000 26000 42000 48000 55000M/N ★ ★ ★ ★ ★

EF ★

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

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

“Chinese Famous Brand”. Adhering to the development policy of enlarging and strengthening out enterprise, it has now become a strong and competitive group, ranking high in electrical energy measuring equipment area and home appliances area and getting more and more prosperous and competitive in the telecommunication industry.

Founded in November, 1997, Ningbo AUX Import and Export Co., Ltd has a registered capital of 150 million RMB. As a subsidiary company of AUX group in charge of international trading, in the

last ten years, the company has developed into a highly prospective and vigorous one which owns 28 departments and 200 young and ambitious employees and a total amount of annual trading around 220 million dollars. The export goods of the company include air-conditioner, mobile phone and home appliance. And our market covers more than 100 countries, including Turkey, Australia, Syria, United Arab Emirates, Algeria, South Africa and Venezuela, etc.

In 2004, Ningbo AUX Import and Export Co., Ltd was credited as “Chinese

Famous Product” and “Chinese Famous Brand”, and got the title of “Grade A Management Enterprise” and “Grade AA Management of Processing Business” by custo-mhouse. In 2005, it was credited as “2005-2006 Chinese Key Fostering and Developing Famous Brand”. In 2006, it was credited as “Key Recommendation Product of Department of Commerce”. In 2007, it was credited as “2006 Annual Advanced Nongovernmental Inter-na tio nal Business Enterprise” and “Standard Enterprise of Inter nat-ional Business Operating”.

With the steady and persisting efforts of AUX people and the implementation of the industry upgrading strategy, human resource strategy and internationalization strategy, we have strong confidence that AUX group will become a worldwide influential manufacturer and corporate group.


Air Conditioner

Hisense International Co., Ltd.

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

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

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.


Air Conditioner

Line

Up-

R41

0A


Air Conditioner

T1 410A220V 50HZDC Inverter

T1 410A220V 60HZDC Inverter

Cooling Cooling &Heating

Cooling &Heating



Cooling &Heating

5k6k7k ★ ★

9k ★ ★ ★ ★ ★ ★ ★ ★

12k ★ ★ ★ ★ ★ ★ ★ ★

18k ★ ★ ★ ★ ★ ★

22k ★ ★ ★

24k ★ ★ ★ ★ ★ ★

30k32k






5k ★

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24k ★ ★ ★ ★ ★ ★ ★ ★

30k ★ ★ ★ ★ ★ ★ ★ ★

32k ★ ★

T1 410A 115V 60HZ FixedSpeed

Cooling & Heating

TCL Air Con Family Tree

ProductR290 T1 410A 220V 50HZ Fixed

SpeedT1 410A 220V 60HZ Fixed

Speed

ProductT1 R22 220V 60HZ

★

★

T1 R22 115V 60HZ T3 R22 220V 60HZ T3 R22 220V 50HZ T1 R22 220V 50HZ

TCL Home Appliance (Hong Kong) Company, Ltd.

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

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”.


PART 2: Compressor

Rotary Compressor

Scroll Compressor

Main Manufacturers

Compressor

Production Distribution With the rapid development of China

household air conditioner sector, rotary compressor which is the key component also fl ourishes. From 2006 to 2010, the production of China rotary compressor reached annual growth rate of 11% and production capacity utilization rate of about 87%; in 2010 the total output reached 109 million units. (Chart1/2)

In the nineties, Japanese and Korean compressor enterprises have set up plants and joint ventures or did business with single proprietorship in China. China also has its independent compressor enterprises. Landa, as a branch company of Gree, has further expanded production capacity of Zhuhai plant by increasing equipments and getting over bottlenecks of production in August 2010, with annual capacity reaching 12 million units. 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 is concentrated in East China and South China, and the newly-built and expansion projects are moving to the inland of China; Anhui, Jiangxi has become the emerging production bases. The common characteristics of the transformation and expansion projects are close to the customers and located in the inland, which can help to reduce labor and transportation costs and respond to the needs of customers as soon as possible.

Production and Sales The production and sales of rotary

compressor are decided by the demand from downstream air conditioner sector;

0

2000

4000

6000

8000

10000

12000

2006 2007 2008 2009 20100.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Production Capacity(10k units)Production Capacity Utilization Rate

Rotary Compressor

Chart1 Evolvement of China rotary compressor production capacity and production capacity utilization rate from 2006 to 2010

Source:ChinaIOL

plus the individual needs of various customers, the enterprises basically produce according to the orders and barely prepare for inventory ahead of time, therefore the production and sales have kept nearly the same. From 2006 to 2010, the annual average growth rate of production and sales of China rotary compressor reached 17%, higher than that of rotary compressor production capacity. (Chart3)

In 2010 rotary compressor kept in short supply and full-loaded operation as well as selling out situation. The series of economic stimulation policies adopted by China made all air conditioner enterprises to be optimistic about the estimation in 2010, plus the price rising of raw materials, the enterprises started stocking and increased inventory since the off season of 2010. Under the positive factors

such as good economic performance home and abroad, hot weather and political stimulation, the production and sales of downstream air conditioner sector boomed, which caused the short supply of compressor. The production and sales of compressor all exceeded 0.1 billion units in 2010, up more than 50% year on year; the production and sales in some months even reached over 10 million units.

The overall production capacity ut-ilization rate of foreign-invested en t e-rprises (including Japan-invested, Ko-rean-invested and Taiwanese-invested ones) is only in moderate or lower. Those enterprises are generally supported by large consortia, and compressor sector is just a part of business for the Groups. Due to the low profi t of rotary compressor sector, the Groups tend to invested more on


Compressor

Enterprise East China South ChinaNorth China

Northwest China

Northeast China

Central China

OtherProduction Capacity

Chinese-invested

LandaHefei, Anhui

Zhuhai, Guangdong

1200

QingAnXi'an,

Shaanxi350

InpowerXi'an,

Shaanxi100

Sino-Japan Joint

Venture

QmccHefei, Anhui

Foshan, Shandong

2200

Highly ShanghaiNanchang,

Jiangxi1400

Resources Sanyo

Shenyang, Liaoning

640

Gree-Daikin

Zhuhai, Guangdong

150

Japanese-invested

PanasonicGuangzhou, Guangdong

1200

Mitsubishi Electric

Guangzhou, Guangdong

750

Korean-invested

SamsungSuzhou, Jiangsu

1000

LG Tianjin 1000

Taiwanese-invested

RechiQingdao, Shandong

Huizhou, Guangdong

Taiwan 900

Total 10890

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

Source:ChinaIOL

other sectors with higher profit and better development prospect. Those enterprises just need to complete the tasks assigned by the headquarters and their assessments mainly focus on profit; while they can maintain the competitiveness of the profit by the advanced technology, therefore their pressure on production and sales is less than the domestic enterprises.

Chinese-invested enterprises (includ-ing Chinese-funded ones and Sino-Japanese joint venture) lead in overall

growth in the sector, including market share and annual average growth rate. Most of those enterprises operate independently, with little control from the Group; therefore they must work harder because they are responsible for their own profit and loss. GMCC and Landa, with internal customers being Midea and Gree respectively, have become two giants of the sector, and in 2011 their production capacity will expand further again.

The proportion of rotary compressor

exports in China was small, accounting for 15% to 20% of the total sales, mainly belonging to foreign-invested enterprises. The global compressor production capacity distributions are quite close to the major air conditioner production bases. Due to the large investment needed for compressor plant, it is more concentrated than air conditioner enterprise; 90% to 95% of air conditioner production is in Asia, while more than 99% of compressor production is concentrated in Asia. The


Compressor

4000

6000

8000

10000

12000

2006 2007 2008 2009 2010


Source:ChinaIOL

Chart 4 China rotary compressor dom estic sales and exports from 2006 to 2010 (Unit: 10k units)

major compressor production countries are China, Thailand, Korea, Japan and Malaysia, with combined production capacity accounting for 97% of the total, among which the production capacity of China accounts for about 81%. (Chart4)

Overseas MarketBesides China, Thailand and India

are emerging rotary compressor markets which have attracted the most attentions. (Chart5)

In 1980th the manufacturing sector of Thailand, especially electronic industry, realized rapid development. The capacity of air conditioner market was only about 1 million units; most of the air conditioner enterprises were Japanese-invested and Korean-invested ones as well as Thailand domestic ones, mostly exporting overseas. In 2010 Samsung set up inverter air conditioner production line in Thailand; Sharp’s application for investment expansion project in Thailand was also approved; Daikin increased the output of its local plant; therefore the demand for compressor increased.

According to industry forecasts, in 2010 the air conditioner sales in India was expected to reach 4.5 million units; in 2015 its demand for air conditioner will realize more than 10 million units. The demand for compressor increases with the development of air conditioner market. In 2005 Taikang set up the fi rst rotary compressor plant in Hyderabad, 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 enterprises of China increased the exports to India, and international compressor enterprises also set up offi ces in India. In 2010, Pennar Industries set up rotary compressor shell production line in Isnapur, with annual output of 0.7 million units, mainly supplying to Taikang Due to the underdevelopment of air conditioner equipment industry in India, most air conditioner components were imported.

Korea, Japan and Malaysia are old compressor production bases; in the recent year, rotary compressor rarely has new production bases, basically keeping the early layout by Korean-invested and Japanese-invested enterprises.

China82%

Thailand6%

Japan4%

Korea3%

Malaysia2%

Taiwan1%

Indonesia1%

India0% Czech

1%

Chart 5 Global distribution of rotary compressor production capacity in 2010

Source:ChinaIOL

4000

6000

8000

10000

12000

2006 2007 2008 2009 2010

Production Sales

Chart 3 China rotary compressor pro duction and sales evolvement from 2006 to 2010(10k units)

Source:ChinaIOL


Compressor

Daikin has adhered to the strategy of “Global Distribution, Local Service”. It has plants in Japan, Thailand, Czech and China. The proportion of compressor produced in China and sold back to Japan has increased year by year, and the joint venture of Gree and Daikin also has some products that sell back to Japan. The rotary compressor production of Samsung is all in China, with total capacity of 10 million units in 2006 after the movement and no major changes afterwards. Panasonic puts more effort on its plants in China. In 2010 Panasonic closed the Hangzhou plant, moved the production line to Guangzhou, and made the Guangzhou plant as the R & D and manufacturing centre for Panasonic room air con-ditioner compressor. A scroll produ-ction line of Panasonic’s plant in Kusatsu of Japan is planned to move to China in the second half of 2011. In the future Panasonic Compressor will reach to China as well as global market with Guangzhou as the centre in the future.

Key Application Field

Inverter CompressorIn 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 did not have investment plan. Among the eleven major rotary compressor enterprises, nine had realized volume production of inverter compressor. The out-of-step development of inverter rotary compressor was partly due to the unbalanced technological development, but mainly because of the lack of market incentives. (Chart6)

In the recent three years, the pro-duction capacity of China inverter com-pressor kept growing; the product was upgraded constantly and the production line became more diversifi ed; while the development of inverter compressor of various enterprises was unbalanced.

Heat Pump Water Heater CompressorThe rapid development of China

heat pump water heater sector attracts a lot of attention from rotary compressor enterpries for the heat pump water heater compressor. At present scroll compressor and rotary compressor are the main categories of heat pump water heater compressor. The general air conditioner compressor cannot ensure the stability when applied in heat pump water heater. As for compressor enterprises, if supplying air conditioner compressor to heat pump water heater, not only they cannot get the expected profi t, but also results in after-sales problems, which would hinder the long-term development for the whole heat pump water heater industry chain. Therefore the compressor enterprises did not encourage heat pump water heater enterprises to use air conditioner compressor, and put more efforts on the R & D and promotion of heat pump water heater compressor.

Highly is the fi rst compressor en-terprise that launched heat pump water heater compressor. On 4th November of 2009, Ruineng 4XPOWER series special compressors were formally lau-

0500

10001500200025003000350040004500

2006 2007 2008

Inverter Compressor

Chart 6 China inverter rotary com pressor sales evolvement from 2008 to 2010

Source:ChinaIOL

nched on the market, and had realized volume production. In the second half of 2009 GMCC launched various series of heat pump water heater compressors including G1C, G2C, M1C, M2C, X3C and P2C, with refrigerant including R 134A, R417A and CO2, and also realized volume production. Under the support of the fund from “National Technology Support Program”, GMCC jointly deve-loped CO2 heat pump water heater sys-tem with “Vanward” Group. The R134A compressor of Mitsubishi Electric can adapt well to heat pump water heater, which started to sell in 2007, mainly to European market which was more mature. In addition, Panasonic Wanbao and QingAn were also in the middle of development stage of special compressor for heat pump.

Heat pump water heater had small market, and the current industry structure was not stable; the supply of compressor also did not form stable pattern. The future of heat pump water heater is decided by the guidance and stimulation of the national policy. At present China has started to draw up relative standards for heat pump water heater.


Compressor

Source:ChinaIOL

Source:ChinaIOL

Production distributionScroll compressors for air conditioning

are mainly used in heat pump water heater, household cabinet air conditioner, residential central air conditioner and large scale central air conditioner. Excellent performance of scroll compressor and rapid development of the air conditioning market of China contribute to huge market demand on scroll compressor. The leading manufacturers in this area include Copel, Hitachi, Sanyo, Daikin and Danfoss had established production bases in China (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 have stimulated the market demand of 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)

Production and sales During the period from 2006 to

2010, the production and sales of scroll compressors in China kept on increasing 16% annually on average (note: scroll compressor industry generally organizes production as per the order, therefore, rapid product turnover rate makes the inventory very few). The sales growth in China was slightly lower, nearly 16% annually. Affected by the fi nancial crisis in 2008, the economy shrank, the sales volume of the scroll compressor market declined, scroll compressor growth

Enterprise East China Northeast Northwest

Copel Jiangsu Suzhou

Sanyo Liaoning Dalian

Hitachi Tianjin

Daikin Shaanxi Xi’an

Danfoss Tianjin

Scroll Compressor

Chart 1 Production distribution of 2010 scroll compressor in China (by sales volume)

Chart 2 Scroll compressor production bases in China in 2010

restored in 2009. In 2010, stimulated by the energy saving policy of the state and good performance of cabinet unit, VRV, WSHP and GSHP product market, scroll compressors witnessed explosive growth, its sales volume increased by around 47% year on year. Besides net exports, scroll compressor consumption in China soared by around 41% year on year. (Chart4/5)

88% of the production of scroll compressor plants in China served the domestic demand and around 12% was for

exports. Affected by the global fi nancial crisis occurring in 2008-2009, the exports declined.

Hot weather, booming real estate industry, upgrading of domestic air conditioning energy effi ciency standard and energy-saving subsidy policy boosted the sharp increase of application of scroll compressors in the domestic market. Benefi ted from the stimulus of the state energy saving policy, the application situation of 3-5HP scroll compressors on the cabinet market rose in 2010,


Compressor

41%

29%

16%

12% 2%

Copel Sanyo Hitachi Daikin Danfoss

compressors were in short supply. Scroll compressors can’t meet the market demand owing to its small size and more energy-saving etc. Sound development 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 t of inverter VRF became the major points of the strategic developments of scroll compressor enterprises. Scroll compressor enterprises also tried to offer products of more power (HP) to compete with some screw compressor markets.

Export performanceFrom 2006 to 2009, the exports of fi ve

scroll compressor enterprises reached less than 300,000 units. The exports of scroll compressors in 2010 reached 483,300 units, up 87.9% year on year. Reduction of orders from domestic plant of Emerson made the export volume decline due to headquarter order adjustment whereas exports of other enterprises grew signifi cant compared with those of the same period of the previous year. Asia, Latin America, North America and Europe were main export regions of scroll compressors, while Brazil, Thailand, India, the United States and Malaysia were fi ve major countries with largest demands. (Chart6/7)

Among fi ve scroll compressor ent-erprises, the export volume of Sanyo is the largest whereas the export amount of Danfoss is the highest.

Product Detailed Classifi cation The market competition of scroll

compressors of 3HP and below are fi erce and scroll compressors is less advantageous compared with rotary compressors in terms of costs. Currently 3HP scroll compressors are generally applied in middle and high-end cabinet units. Contributing to the guidance and stimulation of the energy-saving policy of the state implemented in 2010, the application condition of 3HP scroll compressors on the domestic air conditioning market was quite good. However, as the production capacity of scroll compressors is limited and its product structure is mainly R22 rather than R410A unit, so the demand from R410A model can not be met, thus it lost some market. Currently, scroll compressor with

0

90

180

270

360

450

2006 2007 2008 2009 2010

Sales volume Volume consumed in China

Chart 4 Sales volume of scroll com pressors in China from 2006 to 2010 and its sales volume evolvement (10k units)

Note: Volume consumed in China=Sales volume+ net export (i.e. Import volume - export volume)

0

90

180

270

360

450

2006 2007 2008 2009 2010

For domestic market For export

Chart 5 Domestic and overseas sales volume of scroll compressors in China from 2006 to 2010 (ten thousand units)

Source:ChinaIOL

Source:ChinaIOL

Source:ChinaIOL

Chart 3 Scroll compressor supply con dition of 2010 in China (by supply)

R410A as refrigerant has been launched on the market. (Chart8)

Scroll compressors with refrigeration more than 3HP but not more than 7HP

are major unit types. The shipment in 2010 increased by 36.6% year on year, of which Dalian Sanyo ranked fi rst with its scale of more than 1 million units,


Compressor

0

10

20

30

40

50

2006 2007 2008 2009 2010

Export volume

Source: China Customs

Chart 6 Export trend of scroll com pressors in China from 2006 to 2010 (ten thousand units)

Note: The above is the total exports of fi ve major enterprises listed in the paper surveyed, which does not include Daikin (Suzhou) exports.

3%

40%

9%

18%

30%

Copel Sanyo Hitachi Daikin Danfoss

18%12%12%

6%6%

48%

7%7%9%

≤3HP （3HP，4HP】（4HP，5HP】（5HP，6HP】（6HP，7HP】＞7HP

Copel increased most rapidly. Research and development of high effi ciency compressor products by manufacturers tallied with the market demand, making it 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 small batch has been achieved at present.

Scroll compressors of more than 7HP increased slowly owing to the sales volume decline of the downstream commercial air conditioning industry in 2009. However, scroll compressors presents strong increase momentum in 2010, with the supply amount of the whole year reaching up to 308,000 units, up 64% year on year. Copel, Danfoss and Xi’an Daikin are three major enterprises with the largest supply.

Market developmentThe heat pump water heater market in

China is developing rapidly, VRF, water source heat pump and ground source heat pump are on the rise on the market and the application area and market of scroll compressors are expanding; meanwhile, old domestic air conditioning enterprises also actively involve in the commercial unit market, the downstream demand for scroll compressors becomes more vigorous.

Scroll compressors of 3HP and above take part in the scroll compressor market competition more aggressively. In the late 2010, Panasonic moved one CS series scroll compressor production line to China from Japan with its annual production capacity of 300,000 units and the refrigerating capacity of 5HP and below, covering water heater, water chilling unit and dehumidifi er, domestic air conditioner and small commercial air conditioners. Refrigerator types mainly include units with carbon dioxide as refrigerant and a handful of units with R410A as refrigerant; carbon dioxide unit mainly caters to the Japanese market and the R410A unit mainly directs to the EU market. Generally products are mainly sold to Japan, the possibility that the products will participate in the competition of the Chinese market can not be ruled out. In December 2010, GMCC held the scroll compressor leaving-the-assembly-line ceremony in its Hefei base.

Source:ChinaIOL


Chart 7 Export condition of scroll compressor in China (by sales volume)

Chart 8 Product structure of scroll compressor detailed class in 2010 in China by refrigerating capacity

At present, the annual production capacity of Meizhi Scroll compressors reaches up to 100,000 units and all of them are R22 5HP compressors. It is planned that after

the project of Phase 2 is completed in 2011, the production capacity of scroll compressors will reach up to 250,000 units.


Compressor

Guangdong MEIZHI Compressor Ltd. (GMCC for short) is a large Sino-Japan-ese joint venture company specializing in R&D, manufacturing and marketing of air-conditioner compressors, refrigerator compressors, compressors for heat pump water heaters, scroll compressors and horizontal compressors, controlled by Guangdong Midea Electric Appliances Co., Ltd., China, and with Toshiba Carrier Corporation, Japan being a shareholder. GMCC was founded in 1995, and has 5 subsidiaries as of 2010, which are Guangdong Meizhi Compressor Co., Ltd., Guangdong Meizhi Precision Manufacturing Co., Ltd., Anhui Meizhi Compressor Co., Ltd., Anhui Meizhi

1. CO2 HEAT PUMP WATER HE ATER COMPRESSOR

Pure natural CO2 refrigerant , effi cient and environmental-friendly Excellent performance s in low-temperature, strong start ability under

extreme condition

2. R290 NEW REFRIGERANT AIR CONDITIONING COM PRE-SSOR

The worldwide-leading technology, excellent GMCC wis dom Natural environmental-protection , huge potential products for future

* United Nations Multilateral Fund of Montreal Model production line

Compressor Manufacturing Co., Ltd and Anhui Meizhi Precision Manufacturing Co., Ltd. GMCC has a registered capital of 848 million yuan, a plant area of 620,000 square meters and a staff of over 9,000.

GMCC is the largest manufacturer of air-conditioning compressors and the most potential manufacturer of refrigerator compressors of the world today. In 2010, the sales volume of air-conditioning compressors is expected to attain 25 million units, with a global market share of over 25%, 3.8 million refrigerator compressors will be sold.

Following the “world-leading str-ategy”, all the staff of MEIZHI, focusing

on the their corporate vision “To be the most excellent compressor supplier in the world”, believing the core rules “Dedicative, Interactive, High-Effi ciency & Effective, Competitive”, abide the core values of conduct “Customers First, Pragmatic & Innovative, Respect People, Keep Learning”, devote to making the business compressor stronger and bigger, working unremittingly in pursuit of the intensive & connotative sustainable development base on accumulated knowledge & innovation, and making unremitting efforts to build the comprehensive competitive advantage with is based on products, human resources, effi ciency, speed and scale.

21


Compressor

3. DOUBLE CYLINDER VARIABLE CAPACITY AIR-CONDITIONER COMPRESSOR

Super power makes, heating rate increased by 20% Strong heating ability at ultra-low temperature -7 ° C, heating capacity in

low temperature increased by 30% Variable capacity operation, free choice of single or double cylinder

* Global fi rst 3HP double-cylinder variable capacity technology

3

Guangdong MEIZHI Compressor LTD.

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

4. DC-INVERTER COMPRESSOR FOR AIR-COND ITIONER

Sino-originating DC motor design techniques, Double-cylinder, low noise, slight vibration, and 30% energy saving Humanistic frequency conversion technology, with ad justable running

speed and cooling capacity covering wider orange o peration area and bringing more convenient and more comfortable feeling Stable and long life expect ancy, for your peace-of-mind usage

4

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 pe rfo rm a n c e with top-

ranking energy effi ciency ratio Lowest oil displacement helps air conditioner achieve highest energy

effi ciency


Compressor

Shanghai Hitachi Electrical Appliances Co., Ltd.

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

Shanghai Hitachi Electrical App l-iances Co., Ltd. (hereafter referred to SHEC) was foundered on Jan, 30th, 1993. SHEC is a joint venture between Shanghai Highly (Group) Co. Ltd. (which subordinated of Shanghai Electric Group Co., Ltd.) and Hitachi Appliances, Inc. 75% share is held by HIGHLY (a listed company, A Share Code: 600619, B Share Code: 900910) and 25% share is held by HITACHI. SHEC designs, produces and sales professional home-use refrigeration compressors. The total capital of SHEC is 573.80 Million US Dollars and the annual capacity is 18 Million Units (including

subsidiary). It covers an area of 230 thousand square meters in Pudong Jinqiao Development Zone in Shanghai. SHEC invested and constructed a wholly-owned subsidiary, Nanchang Highly Electrical Appliances Co., Ltd. Nanchang Highly has been put into production in April 18th, 2009. It covers an area of 340 thousand square meters. The annual capacity of it is 6 Million Units in project.

As a huge joint venture which is controlled and managed mainly by Chinese, SHEC has become the second largest air conditioner manufacturer in the world. SHEC had produced one hundred

million air conditioner compressors in June, 2010 and had fi nished the sales of one hundred million units in August, 2010.

Around the two global problems about “Freon replacement and Energy-saving”, SHEC keeps following and researching the advanced technology of refrigeration industry and the innovation of scientifi c technology. The products of SHEC can be divided into eight series to cover all the range of domestic refrigeration. The main technical parameters of the products have reached the international advanced level.

The family of WHP series

For the domestic market

The heating capacity range of the WHP compressor is from 1kw to 20kw. Including residential and commercial WHP

compressors R134a and R417a refrigerant for choice.

These compressors could endure wide range running condition to make sure the system can work under lower flow rate in winter and high flow rate and high load condition in summer. The output water temperature could reach 55℃ or even higher to meet the requirement of

miniaturization and sterilization. This product could be warranty for 10 years life according to the innovation design based on the new structure, material, working condition and so on, which is totally conform with the special requirement of the heat pump water heater system.

For the international market

High effi ciency small-sized compre ssor, 60Hz electric supplier compressor Above models have now been put into mass

production or in technical balancing in our customer lab.


Compressor

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

Product ——Rotary Compressor

Product Lines For Compressor

Product ——AC/DC Motors

Product ——Controller & Outdoor Module

1

2

3

4

Company milestone

Dec.1989 Company was formedDec.1993 Taiwan factory started mass productionDec.1996 Certified IS0-9001Oct.2001 China(Huizhou) factory started productionFeb.2002 Rechi started to issues share for listingSep.2002 China(Humen) started productionAug.2003 Rechi shares started trading.(TSE)Nov.2006 China(Qingdao) started productionApr.2008 Taiwan factory was ISO14001certifiedOct.2009 DC compressors started at Qingdao


Compressor

Xi’an Qingan Refrigeration Equip m-ent Co., Ltd. (called Qingan Refrigeration for short) is a stock company held by Qingan Group Co., Ltd. (called Qingan for short). Qingan has over thirty years of technical development and manufacturing experiences in air conditioning compressors (ACC), mainly manufacturing high-efficiency & energy-saving rotary ACC. The company is located in Qingan Refrigeration Industrial Park of Xi’an Hi-tech Industry Development Zone. The Company has assets equal to RMB 1.18 billion and employees over 1300 people. The Company’s structures are organized as follows: Planning & Development Department, Finance Department, Sales Department, Company Office, Quality Department, Logistic Department, Manufacture Department, Assembly Plant, Fine Process Plant and R&D Department. The development and production comprises of the fixed speed compressors, AC and DC inverter compressors, CO2 Heat pump water heater (HPWH) compressors and Dehumidification compressors, totaling over 200 specific models. All models are in line with the new national energy

efficiency standards. Presently, the co-mpany has annual production capacity of 5 million compressors.

Focusing on technical development and innovation, Qingan Refrigeration is striving to keep pace with the international advanced refrigeration te-chno lo gy. The products meet all the national energy conservation standards and are characterized by high efficiency, high reliability, low noise and low vibrations. The company has launched products that represent the advanced technology in compressor manufacturing industry, such as DC driven compressor, new environment-friendly medium te-mperature compressors, high EER (en-ergy efficiency ratio) air conditioning compressors, T3 working air conditioning compressors, horizontal compressors and 5HP series air conditioning compressors. All series of compressors have adopted the most advanced design, production and testing standards with emphasis on high efficiency, environmental protection and energy conservation. Qingan Refrigeration will also undertake to develop compre-sso rs according to customers’ specificat-io ns, within refrigeration range from

300 W-15000W (1000BTU- 51180BTU). Qingan Refrigeration, over the years, has established a well recognized brand-name in the refrigeration industry and posses a strong market share both at home and abroad.

Qingan Refrigeration is a national-level technology center and workstation of post-doctoral experts approval by the Ministry of Personnel. We are also one of the undertakers of Secretariat of Subcommittee on Component Parts for Household Electrical Appliances of National Standardization Technical Committee on Household Electrical Appliances. It has established a com plete quality assurance system and environ-mental management system that has been certified by ISO9001 International Quality System and ISO14001 Environmental Management System respectively. The compressors, the main product of the company, has passed CCC security certificate, and the exported products have passed all the relevant international certificates, including CE, TUV, UL and CB. QINGAN brand air conditioning compressors have also been honored as a China Top Brand product.

R410A Compressor

Refrigerant Electric Source ModelRefrigerating

Capacity Volume EERElectric

CapacityAuthentication Development

Status Insidepath

W BTU/Hr

R410A 1PH 115V 60HZ

YZG-A082Y2D2 2460 8400 8.20 3.00 50/250 UL TUV CE Mass-

production 101

R410A 1PH 220-240V 50HZ

YZG-E27RAY2 2700 9220 11.3 2.95 25/450 TUV CE Mass-

production 112

R410A 1PH 220-240V 50HZ

YZG-L80RY2 8000 27300 32.3 2.95 65/450 TUV CE Mass-

production 139

R410A 1PH 208-230V 60HZ

YZG-F165RY2D2 4850 16550 16.5 3.00 60/450 UL Small Batch 121


Compressor

YZG-E27RAY2 Outside View

YZG-L80RY2 Outside View YZG-F165RY2D2 Outside View

1

2 3

Xi’an Qingan Refrigeration Equipment Co., Ltd.

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


PART 3: HVAC Motor

HVAC Motor

Main Manufacturers


Production capacity growth rate slowed downAffected by the economic recovery in 2010, the demand from

home and abroad rose signifi cantly. Some air conditioner motor enterprises in China have started to plan expansion in production capacity, while the scope has been slowed down compared with the last two years. Statistics showed that by the end of 2009, the total production capacity of China air conditioner motor sector exceeded 238 million units; although the market demand had rose substantially, the pressure of excess capacity still existed, in addition, with the further concentration of air conditioner motor sector, the enterprises were cautious about production capacity expansion, and mainly the fi rst-tier motor enterprises and new ones took some actions.

Output increased by 48% year on year In 2010, the overall operation of air conditioner motor sector

was obviously better than previous years. It is reported that with the gradual improvement of global economy, the recovery of air conditioner sector was more obvious, especially after the Spring Festival of 2010, with the leaps and bounds of household air conditioner sector, the demand for air conditioner motor realized signifi cant growth; most motor enterprises had orders full in many consecutive months, some even operated fully—loaded, but still in short supply to the demand from downstream. In previous years air conditioner motor sector had obvious busy season and off season, while in 2010 the distinction between the two was not

0

200

400

600

800

1000

1200

1400

1600

1800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010

2009

0

5000

10000

15000

20000

25000

2006 2007 2008 2009 2010-0.2

-0.1

0

0.1

0.2

0.3

0.4

0.5

0.6

East ChinaY-O-Y


that obvious; even in the months after the refrigeration year, there were still a lot of orders from downstream.(Chart1)

According to statistics, in 2010 China air conditioner motor sector achieved historic breakthrough in both volume and amount; the output in the whole year reached as high as 209.6 million units, exceeding 200 million units in the fi rst time in history, up 48.22% year on year, which was also the highest growth in the past fi ve years.

Domestic Sales: Characteristics of seasons are not obvious

Currently, China air conditioner motor sector still carries on the business mode of production on the base of sales, and the production of the enterprises basically is decided by the orders. The reason for the substantial growth of China air conditioner motor output in 2010 was the support from downstream orders, which indicated the demand from domestic market played a key role. According to the statistics of ChinaIOL, China domestic sales of air conditioner motor in 2010 reached 169.53 million units, up 52.07% year on year. (Chart2)

In addition, due to the infl uence of seasonal characteristics of production and sales of air conditioner, air conditioner motor sector also shows obvious busy season and off season; the period from March to June every year is normally the busy season of production and sales of air conditioner motor sector, while after July until the end of the year it is the off season for this sector. The

Chart 1 China air conditioner motor production scale contrast from 2006 to 2010 (Unit: 10k sets)

Source: ChinaIOLSource: ChinaIOL

Chart 2 Monthly evolvement of China air conditioner motor domestic sales from 2009 to 2010

Unit: 10k sets



100

150

200

250

300

350

400

450

500


2010 2009 2008

situation in 2010 was different from previous years. As shown in Chart 2, the domestic sales of air conditioner motor in July did not drop signifi cantly, and rebounded rapidly after reached a low point in August. In the last a few months of 2010, the domestic sales of air conditioner motor continued to increase, nearly the same to that in busy season, therefore the seasonal characteristics were not obvious, which was in sharp contrast with the same period of previous years.

Exports: back to normal After the downturn in 2009, China air conditioner motor

export market fi nally came back to normal in 2010. According to statistics, air conditioner motor exports totaled 40.07 million units, up 33.89% year on year. In addition, the export market of air conditioner motor has obvious seasonal characteristics as domestic sales market. As showed in chart 3, the exports started to increase in March, reached the highest points in April or May, began to fall after the period, and recovered after two to three months of downturn, with volume increasing month on month.(Chart3)

In the aspect of regional distribution of exports, the overseas demand of air conditioner motor mainly cames from America and Asia. According to statistics, China air conditioner motor exports to America totaled 12.53 million units, up 80% year on year, and the exports to Brazil increased by 483.5% year on year; the exports to Asia reached 22.35 million units, up 21.68% over previous year. In addition, the demand for air conditioner motor from Asian market was still high; although the demand increase of Thailand, Japan and Malaysia was not obvious, and in certain areas even showed a slight decline, the demand from India increased signifi cantly, which boosted the overall exports of air conditioner motor to Asia.

Brushless DC Motor: market share increasedCurrently air conditioner motor generally used in China

market can be divided into AC motor and brushless DC motor. AC motor is normally used in ordinary fi xed frequency air

conditioner; this kind of motor has early development and low technical content, therefore most air conditioner motor enterprises in China mainly use AC motor. While brushless DC motor is used in inverter air conditioner, which is technically advanced. This kind of technology is mastered by Japanese-invested enterprises at fi rst; China domestic enterprises developed late and do not have advantages among market competitions, while after two years of development, brushless AC motor is gradually accepted by more and more air conditioner enterprises. (Chart4)

AC motor still dominated China air conditioner motor market in 2010. According to statistics of ChinaIOL, the domestic sales of air conditioner AC motor reached 118.82 million units, accounting for 92.8% of the total sales, while brushless DC motor only accounted for 7.2%. Nevertheless, brushless DC motor performed impressively in China domestic market, with sales exceeding 12 million units in the fi rst time in 2010 and market share rising from 7.2% to 5.9% of 2009.

PredictionIn January 2011, China air conditioner motor sector did not

slow down operation with the approaching of the Spring Festival and still kept high operation. According to statistics, the output of January reached as high as 21.23 million units, up 41.3% year on year, which is rare in traditional off season. Facing high demand from downstream air conditioner plants, most motor enterprises showed optimistic about the development of this sector in 2011. In addition, in the aspect of product structure, the market of brushless DC motor is more promising. It is reported that with the upgrade of China air conditioner energy effi ciency standard, as well as enhancement of energy-saving and eco-friendly awareness of consumers, China inverter air conditioner market will keep relatively high momentum, therefore the development speed of brushless DC motor will exceed that in 2010, and grow faster and faster; with more and more brushless DC motor products developed by China domestic air conditioner motor enterprises are launched in the market, the market share of this product will also increase further.

5.9%

7.2%

94.1%

92.8%

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

2009

2010

Source: ChinaIOL Source: ChinaIOLUnit: 10k sets

Chart 3 Monthly evolvement of China air conditioner motor export market from 2008 to 2010

Chart4 Proportion of China AC and DC air conditioner motor from 2009 to 2010



Guangdong Welling Motor Manufacturing Co., Ltd., also known as Micro-Motor Division of Welling Holding Limited (Hong Kong Stock Market listed company, code: 00382). Welling Motor currently owes two production bases in Shunde, Guangdong and Wuhu, Anhui respectively, with 9,000 employees and facility of 240,000 square meters. The professional and advanced equipments from U.S., Denmark, Japan, Korea and Taiwan provide the company with great competitiveness. Today, Welling Motor has become one of the world’s biggest micro-motor manufacturers with annual capacity of 120 million units.

Since the establishment, the company keeps growing

healthily, stably and rapidly. Welling Motor is always active to offer high quality and innovative micro-motor products to the market. Now “Welling” has been recognized as the “China Top Brand” and “Guangdong Top Brand” by the National Quality Inspection Bureau.

Facing the new economic environment and on the base of keeping the current motor manufacturing business professionalized and in large scale, Welling is making the greatest efforts to develop into the best, internationalized and all-round motor manufacturer in the world, making Welling to be a well-known brand in the world.

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,USATel: 001-214-909-7983 +86-757-2260-7670 Fax: 001-214-660-5768 +86-757-2633-9911Website: www.welling.com.cn E-mail: [email protected], charles. [email protected]

3.3“

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

42Fand 48F

Single-phase asynchronous motors feature shell structures, capacitor operation, and are widely used in indoor/outdoor units of HVAC equipment.

56F

These three-phase async hron o-us motors feature shell structures, and are widely used in HVAC and commercial cooling facilities.

Motors for Duct indoor unit

These motors are used in fan coil units or outdoor unit fans of small household air conditioners.



Located on Taihu Lake and Delta area of Yangtze River Special Economy Developing Zone, Changzhou Sinjun Motor Co., Ltd. is an exporter who is specialized in motor design, manufacturing and marketing. Its total employees are over than 600 people including 50 plus engineers who are working on R&D. Its production capacity is over than 8 m units per year, which mainly serve to Midea, Chigo, AUX, Tsinghua Tongfang Artificial Environment Co. Ltd., Zhejiang King Refrigeration Industry Co.,Ltd., Zhej]ang Dunan Artificial Environment Co., Ltd., Shuangliang Group, Dezhou Yatai Group and LGA of Korea. lts products are widely used in commercial and residential HVACR industry. With advanced winding and inserting machine, automatic lathe and assembling line and complete inspection equipment, it can consecutively provide high quality products

CXD

L

通风孔

L1 L1

B

B

H

L2 L2

Frame Size

A B C*D L L1 L2

9011.513.5

φ12φ14

90X8070X80

470 100 80

95

11.513.5

φ12φ14

72X10070X10070X10572X94

470 100 80

10011.5 13.5

φ12φ14

75X108 470 100 80

10511.513.5

φ12φ14

72X100 470 100 80

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

and service to satisfy its customers.It has achieved the certification of ISO 9001 quality man-

agement system. All of its products are CCCs and CE app roved and many of them are exported to oversea market.

Advocating the corporate spirit of “Unity, Integrity, Dedication and Innovation” and following the HR principle of “appointing people on their merits and developing people”, it will provide every employee with fair opportunities and both sides get great development.

Looking forward,Sinjun Motor will lead the development trend of China fractional HP fan motor by focusing on products and management innovation, expanding products lines and market share. It will get sustainable growth by improving comprehensive strength and core competitiveness.

1



E

C

A

F

L

L1

10072

100

4-? 5.5

100

11.5

?12

?12 11

.5

100

470

Item A B C D E F

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

Changzhou Sinjun Motor Co., Ltd.

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

2

3

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

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 controlOutline Dimensions



RBC China ImageRegal Beloit is a leading global manufacturer of electric

motors, motion control solutions and power generation, which headquarters in Wisconsin, USA and has 46 manufacture facilities and 12 engineering centers around the world. Regal Beloit holds many famous brands like Marathon, Leeson, Lincoln, Fasco etc. Sales in 2008 was $2.3 billion, and got award of 400 top companies by Forbes.

Nowadays, Regal Beloit has seven manufacturing factories with over 4500 employees in China. We produce and sell motors, power generators and gear boxes. Its region headquarter is Regal

Beloit Corporation Management (Shanghai) Co., Ltd., which possesses the whole right to manage and develop business of Regal Beloit in China.

Our seven Chinese manufacture bases are:Wuxi Hwada Motor Co., Ltd.Changzhou Regal-Beloit Sinya Motor Co., Ltd.Morrill Motors (Jiaxing) Co., Ltd.Shanghai Marathon-Genxin Electric Co., Ltd.Shanghai Jakel Electrical Machinery Co., Ltd.Shanghai Regal-Beloit and Jinling Co., Ltd.Elco (China) Co., Ltd.

Highlight productsElectronic Commutated Motor (ECM) serves the indoor

blower maker for the almost all residential HVAC systems and commercial air distribution systems.

1

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



Changzhou Regal-Beloit Sinya Motor Co., Ltd.

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

Optimize your performanceAll 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)

2

3

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.

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


PART 4: Refrigerant

R22

(HCFC-22)

R410A(R125, R32)

(HFC-125, HFC-32)

Main Manufacturers

Refrigerant

Production Capacity: highly con-centra ted

HCFC-22 is one of the most widely used and important refrigerant products for refrigeration and air conditioner equipments. China is the most important producer and user of HCFC-22. According to statistics of ChinaIOL, in 2010, the production capacity of HCFC-22 in China reached 0.65 million tons, up 6.25% year on year.

HCFC-22 production bases are ma-in ly in Zhejiang, Jiangsu, Shandong, Sic-huan and Jiangxi, among which Zhejiang takes nearly 35% of the total production capacity, Zhejiang, 29%, Shandong 25%. Dongyue, Shandong, Meilan, Jiangsu and Juehua, Zhejiang are the three lar_gest enterprises of HCFC-22 in China, accounting for 55% of the total production capacity. (Chart1)

Supply: tightIn the recent years, the growth of

HCFC-22 output in China is general. In 2009 the output reached 0.45 million tons; in 2010, it got 0.485 million tons, up 7.33% year on year, with the same growth rate as production capacity.

In the fi rst half of 2010 China HCFC-22 market supply kept stable. From August, the supply began to be tight. The reasons for the tight supply are as following: fi rst, with the coming of summer, the limitation on electric usage on production in the South hindered the operation of the enterprises; affected by the emission reduction target, some enterprises reduced operation rate. Second, in October several large ente rprises carried out equipment maintenance, resulting in low load of overall operation; subjected to insuffi cient raw material chloroform, some enterprises also reduced production. (Chart2)

Supply: increaseHCFC-22 can be used not only as

refrigerant, but also raw material for

40%

60%

80%

100%

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010

Production CapacityOutput

Zhejiang35%

Jiangsu29%

Shandong25%

Sichuan8%

Jiangxi3%

HFC-125, PTFE and other downstream products. In 2010, the demand of HCFC-22 as both air conditioner refrigerant and raw material had signifi cant growth. On one hand, the rapid development of air conditioner sector offered huge support; on the other hand, the increase of demand for R410A new refrigerant promoted the demand for HCFC-22. In addition, the demand for fl uorine resin and fl uorine rubber (including PTFE) became another driving force. The export demand which is stable every year is also quite important. In 2010, the exports of HCFC-22 reached about 0.16 million tons, accounting for 1/3 of the total production; the volume used in household air conditioner refrigerant got about 90,000 tons, accounting for

18% of the total production; those used as raw material of PTFE and HFC-125 reached 0.16 million tons, accounting for 33% of the total production; the rest used in blowing agent, other refrigeration equipment refrigerant and fl uorine product accounted for 15%. (Chart3)

Exports: stable Since 2008, China HCFC-22 exports

(HS29034910.12) kept high, basically more than 0.16 million tons. The exports in 2010 reached 164,200 tons, a record high of nearly 5 years, but only up 1.39% year on year. With the decline of HCFC-22 production capacity in the world, and market demand for HCFC-22 repair amount, the exports have remained

R22 (HCFC-22)

Chart 1 China HCFC-22 production capacity dis-tribution in 2010

Chart 2 HCFC-22 production capacity and output from 2006 to 2010 (10k tons)

Source: ChinaIOL

Source: ChinaIOL


Refrigerant

Exports34%

R125 Production

12%PTFE

Production21%

Household AC

Refrigerant18%

Others15%

\

stable. Japan, Korea and the United States

have been the important HCFC-22 export countries of China. In 2010 China exports to the three countries were 25,500 tons, 20,200 tons and 12,500 tons respectively, accounting for 35% of the total exports. Japan and Korea realized growth year on year, but the exports to the United States dropped slightly. In the aspect of continent, Asia is still the main region for China HCFC-22 exports, accounting for 68% of the total exports in 2010. (Chart4)

Price: climb up In 2010, HCFC-22 stopped the

downturn situation of 2009; its price continued to rise from 11,000 Yuan/ton from January to more than 20,000Yuan in December, reaching a new record high in 6 years since 2005. The price evolvement of HCFC-22 in 2010 can be divided into several stages, while the driving forces for the price rising of every stage are different.

At the beginning of 2010, which should be the off season of refrigerant, HCFC-22 market did not show characteristics of off season; the supply became tight and the price continued to rise, from 11,000 Yuan/ton in January to 15,300 Yuan/ton in March, up 4,000 Yuan/ton. The price rising situation maintained till early March. In this period, the demand for air conditioner refrigerant was high, but the supply of raw material chloroform was tight, which limited the operation of enterprises, therefore the price rose.

From the middle part of March to the beginning of July, the price of HCFC-22 began to drop slowly, from 15,300 Yuan/ton in March to 13,500 Yuan/ton in middle July. In this period, the supply and price of hydrofl uoric acid and chloroform were stable, plus the good operation situation of the enterprises, the price of HCFC-22 dropped slowly. Starting from July, the price of HCFC-22 rebounded sharply once more, from 13,500 Yuan/ton to more than 20,000 Yuan/ton at the end of November, and reaching 22,000 Yuan/ton in the middle part of December. In December the rising rate was the largest, up 3,000 Yuan/ton, and the monthly rising rate reached about 1,500 Yuan/ton.

From the end of June, due to the fl ood

disaster of some regions in South, the supply of hydrofl uoric showed problems, and the price began to rise. In July, due to the hot weather and electric usage limitation in Jiangzhe region, the operation of the enterprises was hindered. From September to November, the enterprises were still restricted by energy saving and emission reduction target, and they began the

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equipment maintenance; therefore the operation reduced which caused the decreasing supply. The short supply of chloroform and reduction of export raw materials were also a constraint to the production of HCFC-22. Factors such as raw material and supply pushed the price rising of HCFC-22. (Chart5)

Source: ChinaIOL

Chart 3 HCFC-22 application distributions in 2010

Chart 4 29034910 export evolvement from 2007 to 2010 (Unit: 10k tons)

Notes:29034910——Other methane, ethane and propane halogenated derivatives only with fl uorine and chlorine, including HCFC-22


Chart 5 Weekly average EXW price trend of R-22 in bulk in South market (Unit: Yuan/ton)

Notes: the data is the EXW price in bulk in East China

Source: ChinaIOL


Refrigerant

At present China is still affected by the restriction of R410A patent. The production, sales and patent right of R410A and other mixed eco-friendly refrigerants are in the hands of only a small number of enterprises: DuPont, Honeywell and Daikin. Therefore, alth-ough China domestic refrigerant en t-e r pri ses do not have any problems in technology, they cannot produce R410A legally, which limits the supply of R410A. Let’s learn more about R410A market through the analysis of the market of HFC-125 and HFC-32 in 2010.

Production Capacity: increase sig-nifi can tly

In 2010, facing the high demand of R410A, the supply of HFC-125 and HFC-32 was very tight. Under the stimulation of high demand and high profi t, refrigerant sector set off an investment boom. In 2010 the production capacity of HFC-125 rose from 42,000 tons of 2009 to 69,200 tons of 2010, up about 64% year on year; the capacity of HFC-32 also rose from 39,500 tons of 2009 to 50,500 tons of 2010, up 28%.

The production capacity concentration of HFC-125 and HFC-32 is very high. The production capacity of HFC-125 is mainly 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 capacity.

The production capacity concentration of HFC-32 is more signifi cant, with half in Jiangsu, and the rest in Zhejiang and Shandong. (Chart1/2)

Supply: continue to be tightIn 2010, the demand for new re-

frigerant R410A from air conditioner enterprises rose rapidly, which caused the tight supply of HFC-125 and HFC-32 in China market.

According to ChinaIOL, in 2009 the

output of HFC-125 in China reached about 23,000 tons, while in 2010 it realized around 40,000 tons, up 74% year on year. In 2010 the output of HFC-32 realized 35,000 tons, up 75% year on year.

The existing production capacity of China could meet the demand, but the overall operation rate is not high. According to statistics of ChinaIOL, the overall operation rate of HFC-125 sector in 2010 reached about 57%, while that of HFC-32 was also only 60%.

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

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Source: ChinaIOL

Source: ChinaIOL

Chart 1 HFC-125 and HFC-32 production capacity contrast from 2009 to 2010 (Unit: k tons)

Chart 2 HFC-125 production capacity distributions in 2010


Refrigerant

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Demand: rise With the speed up of HCFC-22

phase-out, increase of new refrigerant air conditioner export demand, rapid 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 output reached 97.792 million units, with 25.2743 million units used R410A new refrigerant, accounting for 25.89% of the overall household air conditioner output, up 378.91% year on year. On the basis of 1kg R410A for each equipment, the amount of R410A needed reached 25,000 to 30,000 tons.

On one hand, the exports of new refrigerant air conditioner in China have increased signifi cantly. The demand from Europe, Japan recovers and has substantial growth; the demand from the United States has also increased. On the other hand, the output of inverter air conditioner increases greatly, and the demand from domestic market has rose signifi cantly. According to statistics of ChinaIOL, in 2010 China inverter household air conditioner output reached about 16.5 million units, up 104.2% year on year; the domestic sales of inverter household air conditioner realized 11.41 million units, accounting for 22.1% of the total domestic sales of household air conditioner.

Central multi-split air conditioner product also becomes an important app-lication product of R410A. Currently nearly all multi-split air conditioner use R410A refrigerant. According to statistics of ChinaIOL, the sales of China multi-split air conditioner increased by about 27% in 2010.

Compared with HFC-125, the dem-and growth for HFC-32 slightly eased.(Chart4)

Exports: concentrate in export regionsIn 2010 the exports of HFCs products

increased substantially. The exports of HFCs mixed refrigerant (H.S. Code: 38247800) was also a driving force for the growth of market demand. China Customs’ data showed that in 2010 the total exports of HFCs mixed refrigerant reached 31,600 tons, up around 52% year on year. Starting from March of 2010 the

Source: ChinaIOL

Source: ChinaIOL

Chart 3 HFC-125 and HFC-32 production capacity contrast from 2009 to 2010 (Unit: k tons)

Chart 4 Detailed classifi cation Proportion of China refrigerants for household air conditioner from 2008 to 2010(Unit:%)

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Notes:38247800—Containing perf luorocarbons (PFCs) o r h y d r o f l u o r o c a r b o n s ( H F C s ) , b u t n o t c o n t a i n i n g chlorofl uorocarbons (CFCs) or hydrochlorofl uorocarbons (HCFCs)(including R410A)


Chart 5 Exports of HFCs mixed refrigerant from 2009 to 2010 (Unit: ton)

On one hand, the technical limitation hinders the operation rate of HFC-125 to some extent; on the other hand, the increase of applications of HCFC-22 as raw material also restricts the operation of

HFC-125; in addition, the electric usage limitation and energy-saving and eco-friendly requirement of regions in 2010 also is one reason for low operation rate.(Chart3)


Refrigerant

monthly exports have been kept more than 2000 tons, and reached as high as 3100 tons in June.

Thailand, Japan, Korea, Russia and Malaysia are the main export countries of HFCs mixed refrigerant of China, with combined export volume accounting for 50% of the total. In the aspect of export continent, Asia is the major export region, with export volume reaching 19,000 tons in 2010, accounting for 60% of the total exports; Europe is the second largest export continent, with export volume of 7,000 tons, accounting for 22% of the total.

The exports of HFC-125 and HFC- 32 reached the record high in 2010. According 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 reached 9,700 tons, accounting for 80% of the total exports; while the exports of HFC-32 to the three countries totaled 7,000 tons, accounting for 83% of the total exports. (Chart5/6)

Price: increase in double The demand for R410A has a sig n-

ifi cant growth, which causes the price rising of the product. The price of R410A rose from about 40,000 Yuan/ton at the beginning of 2010 to more than 100,000 Yuan/ton at the end of 2010. The price evolvement of R410A is refl ected by the price change of HFC-125 and HFC-32.

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 the beginning of 2010, the EXW average price of HFC -125 in bulk in East China market reached 32,000 Yuan/ton; driven by the export demand and demand for mixture, the price of HFC-125 continued to rise from February to April, and reached a record high of 68,000 Yuan/ton in the middle of this year; the overall market offer was a bit of confusing. Starting from May, with the expansion of production capacity, the supply source increased, which eased the tight supply HFC-125, so the price began to drop. In August the price rose again, from 59,000 Yuan/ton to

125,000 Yuan/ton at the end of 2010. The reason for this rising was the reduction of supply source due to the production problems of the enterprises and the tight supply of raw material HCFC-22. The price of HFC-125 rose by three times from the beginning of 2010 to the end of 2010.

The performance of HFC-32 was also well in 2010, with price rising steadily. The EXW average price of HFC-32 in bulk in East China market rose from 166,600 Yuan/ton at the beginning of 2010 to 31,200 Yuan/ton at the end of 2010, nearly doubled, and the average monthly growth rate kept 1,300 Yuan/

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ton. (Chart7)In 2010, facing with replacement of

air conditioner refrigerant, the demand for R410A from air conditioner sector was very urgent. The demand from inverter air conditioner development and product export growth will continue to support the development of R410A. With the expansion of HFC0125 production capacity, the market supply of R410A will ease. As an important raw material of refrigerant and HFC-125, HCFC-22 will infl uence the overall refrigerant market; the application expansion as raw material will support the market of HCFC-22 products to a certain extent.

Chart 6 Export evolvement of HFC-125 and HFC-32 from 2006 to 2010 (Unit: ton)

Notes:29033990—Fluorinated, brominated or iodinated de rivatives of acyclic hydrocarbons(including HFC-125\HFC-32)


Chart 7 Average price of HFC-125/HFC-32/R410A in East China market(Unit:10k Yuan/ton)

Source: ChinaIOL


Refrigerant

1 2 3

Founded in 1987, Shandong Dongyue Chemical Co., Ltd has become the biggest environment friendly refrigerant base in the world. The market share of main product of environment friendly refrigerant is up to 40%, which takes 40% of export quantity in the same industry also. Viewing to Green and Environmental protection, we R & D successfully series of Dongyue-Tsinghua Green Refrigerants by powerful combination with Tsinghua University. The series of product gained “National S&T Innovation award”, also been approved to popularize by USA

SNAP Plan., DY3 as a new environment friendly refrigerant which was researched independently gained the international unified code and was awarded Chinese outstanding patent, became the main force of domestic refrigerants substitution. During passed years, depending on the guarantee of series of authentications of ISO9002,ISO14001,ISO10012 and UL and the advantages on scale, science and technology, brand and culture, Dongyue Chemical Co.,Ltd had entered successfully home electric appliance, automobile, pharmacy, and Electron industries, become

better supplier of many famous companies at home and abroad, including Dupont, Daikin, Mitsubishi, Haier, Hisense, Gree, Midea, Changhong, Chunlan etc. “Dongyue” green environmental protection refrigerant honorably win “China famous brand”. We were conferred successively “ national May 1st labor award”, “ civilization unite of shandong province”, “model unite of enterprise culture and industry informalization”, and were indentified state emphasis hi-tech enterprise and new material industrialization backbone company.

DYR-3(R439A):

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

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.

R425A:

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


Refrigerant

7 89

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Group Office

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

R22:

It is used in reciprocating compressor as a refrigerant in air-conditioning system of industry, commerce and house. It can also be used as a aerosol propellant in pesticides and spraying paint, to process fire-extinguishing agent (1211). It is the basic material of a wide variety of fluorinated macromolecular compounds.

R32:

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

R134a:

It is used in refrigeration and air-conditioning system as a refrigerant, including automotive air-conditioning, refrigerator, Central air-conditioning, commercial refrigera tion etc. It can also be used as a aerosol propellant, flame retardants and foaming agent in products of medicine, pesticide, cosmetics, cle anout etc.

R125:

I t is an important part of mixtures as a refrigerant to replace R-502 and R-22. It can also replace Halon-1211 and Halon-1301 as a fire-extinguishing agent.

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.

R142b:

I t is used mainly as a foaming agent to replace CFC-11 in polyurethane sandwich plates production of industrial and commercial refrigeration, it can also be used as a refrigerant in h igh-temperature heat pumps and in air-conditioning of steel enterprises high-temperature workshops to replace CFC-12.

Export Marketing Dept.

Tel: (0086)533-8221599 (0086)533-8210513


Refrigerant

2

ZHEJIANG JUHUA CO., LTD.

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

Established with the valuable assets from Juhua Group Corporation and went public in June 1998, Zhejiang Juhua Co., Ltd. is primarily engaged in the production and sales of the chemical raw materials and their down-stream products in fl uorochemical, chlor-alkali, sulfuric acid and other chemical industries. It has 18 production plants with state-of-the-art technologies in the world. Zhejiang Quhua Fluor-chemistry Co., Ltd., held by the company with

Products Available

1,1,1,2-tetrafl uoroethane

(HFC-134a)1,1,1-trifl uoroethane (HFC143a)Difl uoromethane (HFC-32) Pentafl uoroethane (HFC-125)Chlorodifl uoromethane (HCFC-22)Hexafl uoropropane (HFC-236fa)Heptafl uoropropane (HFC-227ea)Refrigerant products in aerosol cansPTFE Suspension Molding Powder PTFE Medium size Particle Resin PTFE Free Flow Resin PTFE Fine Powder Resin PTFE Dispersion

FEP

Poly(Vinylidene Fluoride) (PVDF)Octafl uorocyclobutane (C-318)Hexafl uoropropylene (HFP)Industrial Methylene Chloride

98% share of interests, is a National Hi-tech Enterprise and one of the largest manufacturing base of fl uorochemical raw materials in China.

The company has total assets of 4.2 billion RMB and 23 subsidiaries and branches, wholly-owned, held with majority shares or with share pa r-ticipation, including Zhejiang Quhua Fluor-chemistry Co., Ltd., Ele ctro-chemical Plant, Sulfuric Acid Plant, Fluoropolymer Plant, Ningbo Juhua

Chemical & Science Co., Ltd., Zhejiang Lanxi Juhua Fluorochemical Co., Ltd., Zhejiang Jubang Hi-tech Co., Ltd., Zhejiang Quzhou Jutai Building Materials Co., Ltd., Zhejiang Jusheng Fluorochemical Co., Ltd., Zhejiang KAISN Fluorochemical Co., Ltd. and Zhejiang Quzhou Lianzhou Refrigerant Co., Ltd. as well as an R&D center. Its product portfolio includes more than 80 products of four categories, exported to 30+ countries and regions.

1

1, HCFC-22

The refrigerant F22 of Zhejiang Juhua Co., Ltd. has been named Famous Brand of China.

2, HFC-134a

Environmental-friendly Refrigerant HFC-134aHFC-134a from Zhejiang Juhua Co., Ltd. is made under the l icensed propr ietary technologies of Showa Denko K. K., Japan. The process is state-of-the art and the technology well-developed, yielding top quality product that meets the product standards of leading enterprises in the world and has passed the SGS certifi cation.


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