Posts Tagged ‘freezers’

 

China’s HVAC & R sector: temporary downturn but will recover soon

Monday, February 20th, 2012

China Household Electrical Appliances Association released the latest output, sales and exports numbers of China’s HVAC&R sector. China's HVAC&R sector: temporary downturn but will recover soonAlthough the sales of refrigerators, freezers and air-conditioners slowed down in 2011, manufacturers believe the downturn is temporary and will recover soon. Updating products becomes their strategy to increase sales in 2012.

On 13 January 2012, the China Household Electrical Appliances Association (CHEAA) held a media conference to review the development of the Chinese home appliance industry in 2011. Output, exports and sales numbers of China’s HVAC&R sector were released during the conference.

Boosted home appliance production
CHEAA said that stimulated by the Chinese government’s home appliances rural subsidy scheme and home appliance replacement programme, the home appliances industry achieved breakthroughs in output and exports.
In the HVAC&R sector, the manufacturing and export saw a record growth surge in 2011. From January to October 2011, the combined output of household refrigerators reached 63 million units, a year-on-year increase of 8-9%; the production of air-conditioners increased by 20% and reached 95-97 million units. The export delivery value of refrigerators, freezers and compressors increased by 3.3%, 10.2% and 17.7% respectively.
Growth of sales in China’s HVAC&R sector slows down
The sales of refrigerators, freezers and air-conditioners slowed down in 2011. According to CHEAA, the sales of refrigerators dropped 18%, the sales of air-conditioners dropped 12% in China’s 24 cities in 2011. The growth rate of exports in the sector also declined over the same period in the previous year. Exports of this sector are not looking promising for 2012 especially considering the continuing decline in the US economy, the unresolved European debt crisis and stagflation in new markets. Lack of market demand in both domestic and overseas markets will be the main difficulty facing China’s HVAC&R sector in 2012, from which it traditionally derives high revenue.

Reasons for the slowdown in sales growth include fluctuation of the macro economy, turbulence in the price of raw materials as well as the downturn of the real estate market in China.
A period of upgrading
The business environment for the Chinese HVAC&R industry is not very promising based on the sales and exports in 2011. Many Chinese home appliance manufacturers have begun to revise their market strategy to spur domestic consumption and increase competitiveness in overseas markets. Updating products seems to be the common choice of many manufacturers.Haier, one of China’s biggest household appliance manufacturers stresses innovation and high technology in its market strategy this year and will push for market share through premium products such as frost-free and three-door refrigerators. Midea, another home appliance producer in China, is also planning to finish upgrading its most modern air-conditioner in two years. The updating aims to improve quality and add innovative elements for their low-carbon products. Manufacturers in China have realised high efficiency products would better meet consumers’ demand and increase sales.

Most Chinese home appliance manufacturers believe the downturn is temporary and recovery is around the corner. Although the end of China’s national home appliance replacement programme in 2011 cooled down the household appliance market, there still exists large market potential because many Chinese families need to replace their old household appliances in 2012.

SNAP ruling opens US market to hydrocarbons: the industry reacts – part 2

Monday, January 16th, 2012

This second article collects the views of some industry players on whether the US EPA approval of hydrocarbons in household and SNAP ruling opens US market to hydrocarbons: the industry reacts - part 2small commercial stand-alone refrigerators and freezers, could be seen as the beginning for introducing hydrocarbons in other applications. The industry players also reflect on how fast a transition to hydrocarbons could happen in the US.

Towards accepting hydrocarbons in additional applications

“I am pleased that this approval gets us one step closer to bringing this efficient technology to many different consumer applications”, notes A.S. Trust & Holdings’ Richard Maruya, the inventor of refrigerant blend R441A, one of the three approved refrigerants.

“We expect that this is the first small step in the direction of opening up the US market to hydrocarbons in many other applications and we are hopeful that this announcement is an indication that the US regulatory system has decided to change course and work towards “catching up” rather than continuing to fall behind”, says John W Clark, Technical Advisor, HyChill Australia Pty. Ltd..

Of course, “safety factors and applied cost will continue to be the market drivers relative to further acceptance”, emphasises Keith Gifford, Director of Global Marketing at Tecumseh Products Company. “We’re already seeing some evaluations of central systems that may make more sense to be de-centralised for use with HC refrigerants”.

However, “there can be little confidence that approval in other applications will happen any time soon, given the level of opposition to HCs in the US, and the onerous and cumbersome approvals process of the regulatory authorities”, notes Brent Hoare, Executive Director of the Green Cooling Association, the Australian based organisation for environmentally responsible refrigeration and air-conditioning practitioners.

This will also depend “on whether the charge size limitations can be increased in the future”, highlights Nicholas Cox, Managing Director of UK based Earthcare Products Limited.

Industry’s readiness and willingness for a smooth yet gradual transition to hydrocarbons

Asked about whether they consider the industry ready and willing for a smooth transition to hydrocarbons (conversion of manufacturing plants, servicing infrastructure, training of technicians, etc), Mr Maruya notes that “the implications of this type of transition, as a general concept, has been considered for years, as various HFC and HCFC refrigerants have been phased out”. Talking specifically about their own experience he notes: “My company has been addressing the larger implementation issues at every step of our development programmes; for example, we have designed a safety valve for automotive air-conditioning systems that will easily be added to new car cooling systems that employ our hydrocarbon blends. We have also created Material Safety Data Sheets in compliance with standard industry practices, and have been working for years with ComStar International, a leader in the development and marketing of industrial strength, environmentally safe HVACR chemical products, to ensure safe and practical compliance at all levels of operation.”

“I have no doubt that the US appliance, HVACR and automotive industries are up to the task to put in place the necessary production, training and servicing training that will be required”, notes Steven P. Mella, Chief Executive Officer at ComStar International Inc, which has been working with A.S. Trust & Holding Co. and has the production and distribution rights to R441A. “The groundwork for the conversion of manufacturing plants, servicing infrastructure, training of technicians, etc is already there, not so much in the US but in select countries around the world where hydrocarbon refrigerants are being manufactured, sold and in use”. ComStar already manufactures R441A at its US plant and is now making preparations to supply Asian customers from its China plant, while it will also begin offering safety certified compressors in the US and overseas markets using the hydrocarbon blend.

According to HyChill, the transition is unavoidable but will be gradual, as it will take time to reverse the significant resistance to hydrocarbons in the industry that has been built up over an extensive period of time. The Green Cooling Association shares the same views: “Unfortunately the assertion of unrealistic flammability risks has been made so frequently and strongly in the US that I fear it will take a long time to overcome the misplaced apprehension that appears to exist there, but I’d love to be proved wrong about this”.

Tecumseh also believes that the movement within North America to hydrocarbon refrigerants will be a gradual one. “As a result, the transition won’t have an immediate impact on the vast majority of refrigeration contractors and service technicians. However, the transition is inevitable and the industry needs to be adequately prepared”, says Mr Gifford.

When it comes to the industry’s willingness to move towards hydrocarbon solutions, Mr Cox is less optimistic in the short term: “At the moment there are no indications that the US industry is willing for a smooth transition to hydrocarbons” he notes, “But if EU manufacturers are prepared to start exporting to the US and if the Chinese follow then the US industry will have to change, willing or not!”