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August 28 - Melco Plans on Overseas AC Business Expansion

Mitsubishi Electric Corp. (Melco) has been one of the most successful Japanese AC manufacturers in overseas markets. Now, its air conditioner division under a new leadership is planning on further strengthening overseas business activities.

August 27 - White Goods Makers Gear Up for Offshore Business

Major Japanese home appliance makers are beginning to accelerate overseas sales of their white goods (major home appliances). With the maturity of domestic market and the resultant deterioration of profitability, major Japanese makers are endeavoring to find the way out in overseas sales which have so far been limited only to microwave ovens and ACs. In the volume zone, however, prior to full-scale advances of Japanese makers, Korea and Chinese makers have already been increasing their shares in various parts of the world, and it is extremely difficult to reverse the situation in a short time.

August 26 - Bangkok RHVAC 2003 to Showcase Thai AC & R Industries

The growth of 37% registered during the first two months of 2003 with growth of at least 20% forecast for the entire year will confirm leadership position for Thailand's air-conditioning and refrigeration industries, and more good news is expected at Bangkok RHVAC 2003 this September. The industry aims to become a global manufacturing hub for high-quality refrigeration and air-conditioning systems, offering its products to customers worldwide. According to statistics from the Department of Export Promotion (DEP), Ministry of Commerce, exports from the Thai air-conditioning and refrigeration sector during January and February 2003 were valued at US$239.19 million, up 37.55% from the same period in 2002. Average growth for the year 2003 is forecast to reach 20-25%, off slightly from last year's total due to the war in Iraq and the SARS epidemic. The DEP and the Air Conditioning and Refrigeration Industry Club are meanwhile determined to break into new markets during the second half of 2003, and see an opportunity to participate in the post-war reconstruction of Iraq.
Mr. Arnon Simakulthorn, Federation of Thai Industries' Chairman of the Air Conditioning and Refrigeration Industry Club and Managing Director of Kulthorn Engineering PCL, revealed: "This year we will continue to expand our markets. Our priorities include countries affected by the war like Iraq and our regional neighbours, especially Vietnam, where we will be competing with low-cost products made in China."

August 25 - Hualing Develops Wide Range of Commercial Acs

Hualing, a well known AC maker in Southern China, has established Hualing Central Air-conditioning Equipment Co., Ltd. to make full-scale entry into commercial AC business. The first round of investment was 50 million yuan (US$6 million). As a major subsidiary affiliated by Hualing Group, Hualing Central Air-conditioning Equipment seems to be growing rapidly.
Hualing Group was one of the mainland's home electric appliance makers which listed its stocks on Hong Kong Stock Exchange for the first time. In 1985 the company introduced a technology from Mitsubishi Electric Corp. (Melco) in Japan. Through 10 odd years of technological accumulation, Hualing brand has been recognized as one of "well known Chinese brands" and their ACs, refrigerators.
Strongly adhering to "fusion of man and nature" as their corporate philosophy, the company has designated the lineup of commercial ACs including VRF as "Ecological Central AC". By this naming, Hualing intends to offer not only temperature and humidity optimum for man, but also improve the air quality.
The company's product lines are grouped into five series:

• CRV Super-link
• CRV Inverter Multi
• CRV Intelligent Multi
• CRV Commercial Unit
• CRV Chiller Unit

August 24 - ASHRAE Installs New Officers, Directors

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) installed new officers and directors at its 2003 Annual Meeting held in Kansas City, Mo., USA June 28-July 2.
The new ASHRAE president is Richard Rooley, FREng, Fellow ASHRAE, principal of Rooley Consultants in Stoke Poges, Bucks, England. He is the first person from outside the United States and Canada to be elected president. As ASHRAE's president, Rooley directs the Society's Board of Directors and oversees the Executive Committee.
Mr. Richard Rooley, New President of ASHRAE
Other officers installed for a one-year term are:
President-Elect: Ron Vallort, P.E., Fellow ASHRAE, is president of Ron Vallort and Associates Ltd., Oak Brook, Ill.
The Trane Co. and others following his retirement last year from The Trane Co. as vice president-new ventures. He resides in La Crosse, Wis.
Vice President: Darryl K. Boyce, P.Eng., is director of the Department of Physical Plant at Carleton University, Ottawa, Ontario, Canada.
Vice President: William A. Harrison is president of Trane Arkansas in Little Rock, Ark.
Vice President: Kent Peterson, P.E., is a principal and chief mechanical engineer for P2S Engineering Inc., Long Beach, Calif.
Vice President: Terry Townsend, P.E., Fellow ASHRAE, is president of Townsend Engineering Inc., Chattanooga, Tenn., and Panama City, Fla.
ASHRAE installed the other directors to serve a three-year term from 2003-2006.

August 23 - Chinese AC Majors Take Countermeasures against SARS

Although AC sales usually reach a peak in April ~ July period, China's domestic AC sales dropped under the impact of SARS. Sales drops are specially noticeable in the northern area centering around Beijing and Guangdong area.
According to statistics reported by Air-conditioner Business Information (ABI), sales on May Day this year showed 40% drop from last year.
For fear of mass infection, consumers temporarily eschewed from purchasing residential or commercial ACs.
While affecting the sales by makers directly, SARS has also compelled them to adjust their sales strategies. Although SARS passed its peak, its impact on the consumer mind towards dulling AC consumption still remains. The makers and large chain stores have begun taking emergent steps to minimize the damages.
Midea donated 10 million yuan in total to local hospitals such as in Shunde and Foshan. Feeling large social responsibilities as a big enterprise, Midea has extensively practiced charitable services.
By modifying the goal of AC sales for 2003, the company intends to expand the lineup of health-oriented ACs, thereby earning the largest profit, Mr. Liu Liang said.
Haier donated to Beijing Disaster Prevention Center 2 sets of large packaged AC disinfector, 100 air purifiers, 100 oxygen ACs, 100 microwave ovens for disinfection, etc., valued at 680,000 yuan in total.
This year, the company intends to sell air purifiers with degerming function for export within China, according to Mr.
Suning - largest home appliance chain Suning donated 5 million yuan to Beijing Disaster Prevention Center. Immediately after the peak of SARS, the company held an AC campaign for a month from May 24 under the theme "Health, Valuable, Service". The company plans to sell 600,000 units.
Kelon . The company will sell high-performance and low-price "Combine" series in earnest this year, while taking steps for safety in AC installation, Mr. Ji Cheng, Vice President of Kelon Group, said.
Chigo. Although the domestic market share is affected to some extent by SARS, overseas markets are continuing to expand firmly. This year, Chigo will release "Xiao Kang" series with improved degerming and health-oriented functions.
AUX. While the company continues to stress sales promotion during long consecutive holidays, "We will reinforce publicity for sales on weekdays," Mr.Wu Fangliang, President of AUX, said.
Shinco. By expanding sales of ACs incorporating "keling" degerming technology, the company intends to extend its market from big cities to small cities and rural areas, Mr. Liu Bing, Assistant to President of Shinco, said.
Little Swan. The company's sales this year dropped 10% from last year, due to the impact of SARS on North Chinese and Guangdong markets. May Day sales remained level with last year. This year, the company intends to develop new products with emphasis on air quality improvement, said Mr. Jiao Weiming, Sales Director of Little Swan.
Aucma. By utilizing sales promotion through phone and preparing a sanitary work manual for AC installation which requires workers to wear a mask, etc., the company intends to serve customers with safe installation work, replied Mr. Mao Fangliang, Vice Chairman of Aucma, replied.

August 22 - 2 Million Shipments Very Likely - Brisk Air Purifier Market

Following fiscal year 2002 (Apr. '02 ~ Mar. '03), the air purifier market for 2003 is very likely to grow substantially. The market last year totaled 1.85 million units, up 30% over the previous year, and is very likely to top 2 million units this year.
Matsushita Electric has enhanced its presence by developing a new model incorporating with antiallergic function by means of new technology, thereby meeting the growing user orientation to healthy and comfortable room environment. Other makers are also endeavoring to develop air purifiers by adopting new technologies. Thus, it is predicted by some trade people that the market this year may reach 2.3 million units.
According to a survey carried out by the Japan Electrical Manufacturers' Association (JEMA), shipments in April and May dropped below last year, and Apr. ~ May shipments totaled 167,000 units, down 6.3% from the same period a year ago.

August 21 - Bangkok RHVAC 2003 Draws Worldwide Interest

The Bangkok Refrigeration, Heating, Ventilation and Air-Conditioning 2003 (Bangkok RHVAC 2003) is whipping up huge waves of interest from prospective exhibitors, with more than 350 major manufacturers from around the globe having confirmed their presence at this world-class event.
As largest trade fair of its kind in Southeast Asia dealing with hot ideas and cool creations, the Bangkok RHVAC 2003 will feature nearly 500 exhibitor booths spreading over 9,300 square metres at the Queen Sirikit National Convention Center, from September 17-21, 2003.
The first three days of the fair are reserved exclusively for trade visitors, some 4,000 of whom are expected to come from ASEAN member countries, Japan, Australia, Taiwan, Hong Kong, India, the European Union, the Middle East, the United State of America, China, South Korea, etc. The remaining two days will be open to the general public.
The previous Bangkok RHVAC exhibition saw 131 Thai and international companies, 360 exhibition booths, and attracted 23,425 visitors, securing sales of 662.49 million baht. With its much larger scale and the keen participatory interest seen so far, Bangkok RHVAC 2003 is certain to exceed expectations.
Expressing keen interest from the private sector, Mr. Arnon Simakulthorn, Chairman of the Air-Conditioning and Refrigeration Industry Club and chairman of the executive board of Thai Industrial Compressor Company Limited, said: "The Bangkok RHVAC exhibition is an important date which businessmen and investors worldwide always take note of, as this fair is the most complete and comprehensive showcase for all innovations and products from the refrigeration and air-conditioning industry. It is also most convenient as specific days have been set aside exclusively for trade visitors also and those for public members. Nowadays, the fair has also attracted potential buyers from the Middle East which is a major market for us and our competitors."

August 20 - Symposium on Photovoltaic Generation System

The 20th Symposium on Solar Photovoltaic Generation System was held in Tokyo on July 1~3, 2003, under the sponsorship of Japan Photovoltaic Energy Association (JPEA). About 500 persons related to the photovoltaic power generation in Japan's industry, government and universities attended the symposium, presenting the current state and future perspective of photovoltaic generation systems while incorporating new information from various sources.
On the first day, special lectures in commemoration of the 20th anniversary were also delivered. One of them (entitled "Towards Diffusion of Solar Photovoltaic Generations Systems") was delivered by Mr. Kazuo Inamori, Honorary Chairman of Kyocera Corp., who took active part in the inauguration of the JPEA as its representative, while the other lecture (entitled "Japan's New Energy Policy and Future Development") was delivered by Mr. Iwao Okamoto, Director of Agency for Natural Resources and Energy.

August 19 - Sanhua Aiming for World Top AC Components Maker

The growing Chinese AC market has been nurturing not only AC makers but also many components makers such as Sanhua. Founded in 1984 by Mr. Zhang Daocai, a private entrepreneur in China, Sanhua has grown into one of the leading Chinese AC components makers after 19 years. Zhejiang Province where Sanhua is headquartered, has become another important center of Chinese AC components production (see page 64 of JARN Special Edition, May, 2003).
While multinational enterprises are advancing into China, Chinese AC and components makers are accelerating their overseas advances. To take advantage of this trend, Sanhua is also expanding overseas advances by establishing its subsidiaries in Japan, USA, Korea, Thailand, etc.
According to Sanhua's statistics, the company's 4-way reversing valve sales in 2002 reached 9.5 million units. Sales of 4-way reversing valves, car ACs' receiver drivers and service valves in January ~ May 2003 period realized 80%, 100% and 50% growth over the same period a year ago.
At China Refrigeration 2003 held April this year, JARN interviewed Mr. Zhan Yabo, young president of the company.
He said proudly, "2002 statistics show that Sanhua has become China's No. 1 AC components maker, and we'll make further efforts to become the world's top maker of 4-way reversing valves, 3-way valves and service valves." The company's main product lines are as follows:

• 4-way reversing valve
• Bi stable 4-way reversing valve
• Pipe assembly
• Accumulator
• Electronic expansion valve
• Solenoid valve
• Drain pump

August 18 - MHI Photovoltaic Module Certified by TUV

Mitsubishi Heavy Industries, Ltd. (MHI) has obtained product certification for its photovoltaic (PV) module MA100 from Germany's third-party inspection organization, TUV Rheinland Product Safety GmbH. The module meets the international specifications and electrical safety standards for photovoltaic modules, and has received TUV certification, considered the most authoritative in Europe. MHI will take this as an opportunity to start full-scale sales in the European market.
The MA100 module certified by TUV is an amorphous type, with a maximum output of 100 W. The module is the world's largest, with dimensions of 1,410 mm (H) x 1,110 mm (W), and it weighs 21 kg.
In the certification testing, based on the testing and evaluation standards IEC61646(*1) (Thin-film terrestrial photovoltaic modules - design qualification and type approval) and IEC61345. (UV test for photovoltaic modules), the module's environmental durability was tested. In addition, the product passed even stricter tests for insulation performance, based on TUV's independent electrical safety standard, SAFETY CLASS II Working Equipment.

August 15 - Shinko Develops Small Wind Power Generation System

Shinko Electric Co., Ltd., Tokyo, has developed a small home-use wind power generation system which generates power when the wind speed exceeds 2 m/s. A kit type assembled by the purchaser, it is sold from October by mail order. The price will be \200,000 ~ \300,000. Featuring a vertical axis windmill composed of five sail arms like airfoil, it produces almost no noisy wind-breaking sound so that it can be used without reserve even in a residential quarter. Power generating windmills are available in 4 types ranging from the one 1.6 m in windmill diameter x 0.9 m in sail arm length to the one 4.0 m in windmill diameter x 2 m in sail arm length. They are installed on the roof or garden with a tripod, or fixed on the balcony.

August 14 - The Schedule Date for HARFKO 2005 Decided

HARFKO 2005, Heating, Air-Conditioning, Refrigeration and Fluid Exhibition-Korea Expo, has been scheduled to be held May 25~27, 2005.
As the famous refrigeration exhibition in Asia and the most authoritative refrigeration in Korea, HARFKO is a grand regular biennual event in international HVACR industry. Successfully held 4 sessions, Heating, Air-Conditioning, Refrigeration and Fluid Exhibition-Korea Expo has grown significantly from its inception.
To accommodate this growth, Heating, Air-Conditioning, Refrigeration and Fluid Exhibition moved into a larger facility for 2003: Convention & Exhibition Center(COEX ; Samsung-dong, Gangnam-nam, Seoul) 10,000 SQ. M.
Many technology and trade events will be again held during HARFKO 2005-Korea exhibition. The organizers say that they will try the best to provide perfect services to the exhibitors and visitors to enable every participant to get successful and fruitful result in the exhibition.

August 13 - Toshiba Carrier Reinforces Medium/Large Lineups

Toshiba Carrier is reinforcing the product strategy for medium/large systems. By developing the "Super-Module Multi" VRF system for multi-room applications, the company has basically completed the lineup of energy-saving commercial and industrial AC systems including those for store and office building use by adopting the new refrigerant R410A.

August 12 - Hitachi Offers Low-Temp (-5°C) Absorption Chiller

Hitachi Industries Co., Ltd. developed and commercialized a low temperature absorption chiller which provides -5°C chilled water by adopting a water/lithium bromide system without using ammonia for the first time in the world (June 2000) . It has been used for process cooling applications at breweries/factories producing beer and other liquors, dairy products, seasonings, etc.

August 11 - China News Flash in July

• Hisense-Hitachi-"Set Free" AC System Technical Interchange Meeting Held Hisense-Hitachi puts new VRF production line to operation from July. On June 14 Hisense held a technical interchange meeting at Qingdao Shangri-La Hotel by inviting experts, scholars and persons in charge of large building projects related to the refrigeration and air conditioning industry. Mr. Fei Licheng, President, and Dr. Piao Yingguo, Vice-President, attended. At the meeting the company introduced the new products and received many orders.
• Midea-to increase production by 2004 Midea constructed a production facility 5 years ago in Wuhu City, Anhui Province, to utilize cheap and abundant labor force in inland areas. Recently the company has decided to expand its yearly production capacity by additionally investing 100 million yuan. At Wuhu production facility, a total of 3 million units have been produced for 5 yeas since its establishment.
• Main battlefield lies in smaller cities Although AC sales in big cities such as Beijing remain sluggish due to the impact of SARS, total sales in smaller cities have surpassed those in big cities. That is, different from usual years, smaller cities became the main battlefield of AC sales this year. It is pointed out by the Development Research Center of the State Council (DRC), PRC, that, although AC ownership in big cities is already higher than 80%, since that in smaller cities is only 20%, there is conspicuous growth potential. Areas such as Yangtze River and Zhujiang River delta will become the largest AC sales markets this year.
• AUX-to invest much in advertisement The company will frequently put AUX advertisement on the air by utilizing CCTV1~12 channels on China's largest state-run TV Station. It is recognized by ordinary consumers that the frequency of commercials somewhat reflects the corporate capabilities. The company has also introduced a free inspection/ repair system called "Yearly Inspection Gold Card".
• Kelon-affixing COP displaying nameplate From 2002 Kelon has been developing high COP ACs such as "Shuang Xiao Wang" series by using high-efficiency Greencool refrigerant. The cooling/ heating COP of this series is claimed to have topped 3.8/4.2. To differentiate the new series from the competitors' products, Kelon has decided to display COP on each AC.
• Daikin's operations in China drawing attention Daikin's operations in China seem to be developing firmly and swiftly.
  Since Daikin has announced recently that the company will launch production of large AC systems for office buildings and factories, Daikin's operations in China are drawing hot attention. If Daikin, which developed VRF system for the first time in the world, launches local production in China, will become a major menace to Chinese makers.
• Chunlan develops R410A AC Chunlan has developed an AC using the new refrigerant R410A which has the intellectual properties. Its prototype unit was in a final stage of test operation. Chunlan is one of Chinese AC makers making huge investment in R&D.
• Electrolux-Mr. Don Gadsden appointed president in charge of Chinese area Electrolux appointed Mr. Don Gadsden president in charge of Chinese area on May 16, taking the place of Mr. Peter Virch. Mr. Peter Virch will serve as Electrolux officer superintending Asia-Oceania area. The company will continue to invest in China.
• Government publishes guidelines for AC use against SARS Government authorities in Beijing, Shanghai, etc. published last May the guidelines for the use of air conditioners in the following facilities to use ACs when SARS was rampant:
  (1) Public spaces and facilities;
  (2) Public traffic facilities and related places;
  (3) Schools, office buildings. These guidelines minutely designated the procedures for safe use of central ACs, while stressing the advantages of VRF system including the prevention of infection between rooms.

August 6 - ASHRAE Region XIII 6th CRC THAILAND

ASHRAE Region XIII 6th Chapter Regional Conference will be held on 19 and 20 September 2003 at the Grand Hotel, Bangkok, Thailand.

August 5 - Can Japanese RAC Shipments Top 7 Million Units ?

"In June, we increased the June sales to the level of those in last year, being helped by the sultriness on the third weekend of June," a maker says. Thus, before the arrival of hot summer, RAC sales battle seems to have started fully. The market size was initially predicted at about 6.8 million units by the industry, and trade people said it would top 7 million units, if the hotness continues. In July, however, cool weather continued throughout the month.
According to the shipment data compiled by the Japan Refrigeration and Air Conditioning Industry (JRAIA), those in June numbered 1,299,006 units, up 3.4% over June last year, thus bringing the cumulative total for the period from Oct. last year to June this year to 5,181,145 units, up 2.5% over the same period a year ago.
Market Status - According to an industry source, shipments (in terms of actual installation units) continued to increase in April and May, allowing the cumulative total for the period up to May this year to register an 8% rise over the same period a year ago. This is an indication that full-scale sales competition is proceeding from the time earlier than expected.
Up until June manufacturers had said their factory shipments had continued favorable and most of them had expected to achieve increased sales compared to those in last year.
Although the results for the factory shipments in July have not been announced from JRAIA yet, it is expected that the July shipments will be much less than that recorded in the same period last year.
On the outset of August the heat wave hit Japan after the long rainy spell and the market reactivated so the industry people seemed to be conceiving the hope for increased sales. The RAC business really depends on the weather.

August 4 - MHI Photovoltaic (PV) Module Certified by Germany's TUV

Mitsubishi Heavy Industries, Ltd. (MHI) has obtained product certification for its photovoltaic (PV) module MA100 from Germany's third-party inspection organization, TUV Rheinland Product Safety GmbH. The module meets the international specifications and electrical safety standards for photovoltaic modules, and has received TUV certification, considered the most authoritative in Europe. MHI will take this as an opportunity to start full-scale sales in the European market.
The MA100 module certified by TUV is an amorphous type, with a maximum output of 100 W. The module is the world's largest, with dimensions of 1,410 mm (H) x 1,110 mm (W), and it weighs 21 kg.
In the certification testing, based on the testing and evaluation standards IEC61646 (Thin-film terrestrial photovoltaic modules - design qualification and type approval) and IEC61345 (*1) (UV test for photovoltaic modules), the module's environmental durability was tested. In addition, the product passed even stricter tests for insulation performance, based on TUV's independent electrical safety standard, SAFETY CLASS II Working Equipment.
Inspectors also visited MHIs' Isahaya Plant at the company's Nagasaki Shipyard & Machinery Works to check quality and manufacturing processes. The plant has already acquired ISO9001 certification for quality management, and it has now established a record of high performance in quality and safety inspections. Europe is a large market, on a par with the US and Japan. There is a high level of interest in photovoltaic modules, for environmental and other reasons, and standards for product performance and safety are strict.

August 2 - Economy Affects CFC Chller Phaseout in USA

Building owners in the United States last year replaced or converted 2,594 comfort cooling chillers that use chlorofluorocarbons (CFCs), leaving an estimated 38,800 of the units that still rely on CFC refrigerants.
A survey of chiller manufacturers released annually by the Air-Conditioning and Refrigeration Institute (ARI) showed the impact of the weak U.S. economy in 2002 as the pace slowed from earlier years. ARI said there were 379 conversions and 2,215 chillers replaced with non-CFC equipment using alternative refrigerants.
There were approximately 80,000 large tonnage liquid chillers using CFCs in the early 1990s when phaseout of the units began in preparation for an end to production of CFCs on December 31, 1995.According to the survey, manufacturers expect in 2003 approximately 2,549 replacements and 334 chiller conversions bringing the year-end total to 44,072 which is 55 percent of the 80,000 large tonnage liquid chillers that used CFCs, usually CFC-11 or CFC-12.
Non-CFC chillers use alternatives accepted for use by the EPA. They include units with hydrochlorofluorocarbons, HCFC-123 and HCFC-22, and hydrofluorocarbons, HFC-134a, HFC-410A and HFC-407C. EPA rules require recovery of CFCs and alternative refrigerants which can then be reclaimed to meet purity limits set in ARI Standard 700.

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