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November 29 - Gas-fired Absorption Chillers in Shanghai

It has been reported by the China Youth Daily that at present the office buildings of the Shanghai Municipal Government are beginning to use gasfired absorption chillers. This summer the electric shortage for the electricity network of the whole of East China, including Shanghai, reached as high as 1.8 million kW. The "west-east" gas transport project has provided relatively sufficient natural gas for Shanghai. Actively using gasfired absorption chillers will play an important role in the energy balance of the Shanghai area.
It is said that at present the use percentage for gas-fired absorption chillers in Shanghai is very low, the government will take effective measures to energetically extend the application of gas-fired absorption chillers so as to relieve the pressure of AC use on electricity consumption. Relevant data shows that during the electricity consumption peak period (June 15~September 17) in Shanghai this year, the electricity consumed by the citizens for ACs each day was about 6 million~8 million kW, accounting for half of the total electric load of Shanghai. In addition to Shanghai, the electricity consumption for ACs in other cities all reached more than 40% of the electricity consumption peak load.
The advisor of the China Electricity Council Zhu Chengzhang suggested that the places where natural gas is available should use natural gas for air temperature reduction and heating. Experts point out that adopting gas-fired absorption chillers instead of electric ACs not only can supplement the valley of natural gas use in summer, but also can effectively avoid the occurrence of electricity consumption peak in the summer, thus achieving the triple effect of environment protection, energy conservation and optimization of the energy structure.
Professor Long Weiding of Shanghai Tongji University said that using natural gas as the energy source for ACs is a reasonable choice. He explained that due to the seasonality, intermittency and instability of AC use, energy supply is a huge pressure on any city. In the areas where the summer is hot and the winter is cold, each year the AC refrigeration only requires 1,000 ~2,000 hours, and the AC utilization percentage is very low.
In addition, it has been reported that Shanghai will take a package action to assure the electricity power network to challenge the peak and get through the summer, including encouraging development of gas-fired absorption chillers, and energetically supporting big buildings such as hotels, office buildings, etc. to develop gas-fired absorption chillers.

November 26 - Geraud Darnis Elected ARI Chairman

Mr. Geraud Darnis, president of Carrier Corporation, was elected chairman of the Board of Directors of the Air-Conditioning and Refrigeration Institute (ARI) at the ARI Board meeting on November 14, 2004 at The Phoenician in Scottsdale, Arizona, USA.
Mr. Darnis is chairman of the ARI Budget and Investment Committee and serves on ARI's Planning Committee, Nominating Committee and Executive Committee. He has served on ARI's Board of Directors and is a member of the Board of the Air Conditioning and Refrigeration Technology Institute (ARTI). Other Leadership Positions Named Other officers elected at the annual meeting include Mr. Debbie Hawkins, president of Superior Coils, who was elected first vice chairman of ARI. Mr. David Pannier, president of Residential Systems for Trane, will serve as immediate past chairman of ARI.
ARI officers elected by the board include nine vice presidents and the treasurer:

• Scott Boxer, president & COO, Service Experts, Inc.
• Ralph Coppola, president & CEO, Hill PHOENIX
• Steven S. Duerwachter, president, Baltimore Aircoil, Co.
• John Ferguson, president, International Division, Tecumseh Products
• David J. LaGrand, president & COO, NORDYNE, Inc.
• David Myers, president, York International
• John H. Reilly, president & CEO, National Refrigeration Products
• Eric R. Roberts, general manager, McQuay International
• Robert Wilkins, president, Danfoss, Inc.
• Treasurer - Keith Coursin, president, Desert Aire Corp.

November 23 - Japanese Household Air Purifier Market

The household air purifier market this year is likely top 2 million units. While the market is expected to expand due to seasonal factors, the manufacturers' positive strategies for new products are helping increase the demand backed up by the growing user desires for health and comfort. With the sizable expansion of demand in 2002, the domestic air purifier market expanded to 1.85 million units. Although that in 2003 stood at 1.804 million units, down 2.8% from 2002, it may be said that it is still showing a high level of growth. In the industry, there still are deepseated expectations that, at the next stage, the market size may expand to a 2 million units level. The air purifier sales for the first half of 2004 dropped about 10% in value and 7% in quantity from the same period last year, while the June sales alone showed a 4% increase over the same month last year, suggesting a slight recovery.
In 2003, the sales competition did not accelerate in the pollen season (from Jan. to Mar.) when sales should have peaked, since pollen particles scattered less. Nevertheless, the air purifier demand in 2003 remained level with that in the previous year.
In the coming pollen season (Jan. to Mar. 2005), pollen particles are predicted to scatter much due to the impact of intense heat waves this summer and the air purifier market will be favorably influenced.
Customers are purchasing purifiers not only to protect themselves from pollen, but also to degerm and deodorize the room air. Thus, the air purifier makers are reinforcing the degerming/deodorizing functions of their new products.
Product strategies worked out this year by all makers are more positive than in usual years. Matsushita Electric Industrial Co. and Matsushita Electric Works intend to expand demand by giving full play to their collaborative power. Both companies, already having a large market share, aim to secure an unrivaled share with their new models.
For this season Daikin launched powerful products incorporating a "streamer discharge" technology developed as a result of 3 years of research in pursuit of formaldehyde and VOC removal.
Sharp further reinforced their product strategy to meet users' orientation to health by improving the degerming ion technology which has proved to be effective in the removal of corona viruses.
Sanyo focused on degerming, deodorization and allergen removal by means of electrolytic mists.

November 20 - Carrier Announces Commercial HVAC Price Increases

Singapore, November 1, 2004. Carrier Asia Pacific Operations today announced price increases across its HVAC commercial product lines. Increases are in the three to five percent range for majority of the affected product categories.
"2004 has seen unprecedented increases on commodity costs," said William M. Brown, president of Carrier Asia Pacific Operations. "Steel is up 35 to 122 percent in the last year, copper up 60 percent and aluminum up 20 percent in the same period."
"In the past, Carrier has been successful in offsetting increased commodity costs through productivity, however, this year's record highs present our industry with new challenges," continued Brown. "With no signs of abating going into 2005, we have no other option than to pass some of these costs to our customers."
"We will be working closely with our customers in Asia Pacific on the implementation of these increases through the end of 2004 and into next year," added Duncan Gillis, vice president of Marketing and Product Management, Carrier Asia Pacific Operations.

November 18 - CLIMATIZACION 2005, International HVAC&R Expo
February 23 to 26, 2005, Madrid, Spain

CLIMATIZACION 2005, the international trade fair will be held from February 23 to 26, 2005, which will cover the following sectors:

• Air-Conditioning
• Insulation
• Heating and Hot Sanitary Water
• Components
• Pumping Equipment
• Industrial Refrigeration
• Commercial Refrigeration
• Building Management Systems, Regulation and Control
• Piping and Valves
• Tools, Equipment and Applications for installer
• Ventilation

November 16 - Industry Leaders Honored At ARI's 51ST Annual Meeting

Eight industry leaders were recognized recently with special awards by the Air-Conditioning and Refrigeration Institute (ARI) at its 51st Annual Meeting in Scottsdale, Arizona, USA.
ARI Chairman David R. Pannier presented the 2004 Richard C. Schulze Distinguished Service Award for outstanding service to the air conditioning and refrigeration industry to Maureen Beatty, Thomas E. Bettcher, Edward W. Dooley, Scott Postle, and Robert Wilkins. The Air Conditioning Contractors of America (ACCA) was presented with the ARI Meritorious Service Award and Daniel W. Holmes, Jr. and Kenneth A. Ohlemeyer were presented with Lifetime Achievement Awards.
The awards are given in recognition of distinguished service and commitment to ARI and the air conditioning and refrigeration industry. These individuals while representing their company volunteered their expertise and time to serve on committees, task forces and working groups; to participate in the certification programs; and to represent ARI and the industry at national and international meetings.
Maureen Beatty, vice president of Operations for National Refrigerants, Inc., received the Schulze Distinguished Service Award for her exemplary leadership and commitment to ARI, especially her role in the creation of ARI's Reclaimed Refrigerant product section. She served as chairman of ARI's Reclaimed Refrigerant product section for many years and devoted an enormous amount of her time and effort in the creation of the Industry Recycling Guide, which was endorsed by ten industry organizations and developed in cooperation with the United States General Services Administration. Thomas E. Bettcher, president and CEO of Copeland Corporation, received the Schulze Distinguished Service Award for his untiring support and outstanding counsel to ARI over the years, including his work as chairman of the ARI Board of Directors during ARI's 50th anniversary celebration in 2003. Bettcher served as chairman of ARI's Education and Training Committee from 1998 through 2001. He has been an active member of the ARI Board of Directors since 1997 and the ARI Executive Committee since 1999. A strong supporter of the North American Technician Excellence (NATE) program and full federal funding for skilled worker training, Bettcher has been an industry leader in the development of innovative ways to recruit skilled workers to the industry.
Edward W. Dooley served as vice president of Communications and Education at ARI for more than 12 years until his recent retirement. He received the Schulze Distinguished Service Award for his help in guiding ARI through the phaseout of CFCs by crafting policy statements, speeches and articles. Dooley served as secretary of ARI's Board of Directors, Executive Committee and as a board member of both the Clifford H. "Ted" Rees Scholarship Foundation and the Partnership for Air Conditioning, Heating, Refrigeration Accreditation (PAHRA) program. He dedicated countless hours to the launch of ARI's Web site, the creation of a National Building Museum exhibit on air conditioning and directed publicity efforts of all of ARI's 25 product sections and 22 certification programs.

November 14 - Matsushita New RAC Adopts Automatic Filter Cleaning System

Matsushita Electric Industrial Co., Ltd., best known as Panasonic brand, unveiled its innovative new air conditioners featuring a built-in automatic air filter cleaning system. The new X Series lineup will free users from regular cleaning jobs and service difficulties caused by clogged filters. This technological breakthrough has further advanced Panasonic's pursuit of user-friendliness, cleanliness and energy efficiency of its air conditioners.
Filter cleaning is the key to maintaining optimum performance of an air conditioner. A clogged filter can reduce cooling and heating efficiency, increase operation costs and sometimes lead to premature component failure. While totally eliminating the cause of these troubles, the new models meet an increased consumer demand for a cleaner indoor environment. Matsushita responded to consumer demands by incorporating advanced technologies into each air conditioning unit such as the industry-leading air purification and ventilation capabilities. The X Series split-type air conditioners feature Matsushita's own oxygen enrichment membrane that concentrates oxygen levels to about 30 percent.
Matsushita's new filter cleaning system automatically cleans the air conditioner's filter once every 24 hours. The cleaning process takes about nine minutes and can clean one-eighth of the entire filter surface. The process begins when the unit is switched off after it is operated for 30 minutes or longer. The filter automatically expels collected dust into the outdoor atmosphere together with other air borne particles.

November 12 - Saginomiya Strengthens Valve Business in China

On September 28, 2004, Saginomiya Seisakusho signed an agreement on obtaining by transfer the Chinese shares of Foshan Hualu Refrigeration Components Co., Ltd. (Chairman Hiroshi Uemura), a j.v. company in Foshan City, from Foshan Tonbao Co., Ltd. (Foshan City). As a result, Foshan Hualu became the fully owned subsidiary of Saginomiya Seisakusho.
Saginomiya Seisakusho intends to strengthen their valve business in China covering solenoid valves, expansion valves, etc. For this purpose, Saginomiya has decided to make the existing j.v. company operating the factory into a fully invested subsidiary, aiming to increase their market share in China. At present, this factory is producing 11 million 4-way reversing valves, and has also started production of electronic expansion valves.
Saginomiya Group will put \2.3 billion into the equipment investment for automation and increased production. Valves produced at the Chinese factory will be sold within China and also be exported to Japan, Europe and the U.S. The j.v. company, Foshan Hualu Refrigerating Components Co., Ltd. was established in 1995, jointly with Foshan Tonbao Co., Ltd., a general manufacturer of air conditioning controls. This Chinese company, which has been made into a fully invested subsidiary, is capitalized at US$14.3 million, with about 1,600 employees. They have decided to expand their lines and scale of business.

November 10 - SkillsUSA Competition Finals to be Held at 2005 AHR Expo

The 2005 AHR ExpoO will host the finals of the heating, ventilation, air conditioning & refrigeration technical competition for SkillsUSA, a national organization serving teachers and high school and college students who are preparing for careers in technical, skilled and service occupations. The event is sponsored by the Air-Conditioning and Refrigeration Institute (ARI) and will take place on Monday, February 7 from 10:00 a.m. - 6:00 p.m. on the Show floor in Orlando, Florida.
The Skills USA competition in the HVAC&R skill area will determine who will go on to represent the United States in the WorldSkills Competition in Helsinki, Finland in May of 2005. Contestants competing at the AHR Expo have been chosen from the winners and runners up from the two most recent years of the annual SkillsUSA Championships held in Kansas City, Missouri. The contestants will compete against each other and the clock to see who will be the lone U.S. representative to face HVAC&R students from around the world. The United States first entered the World Skills competition in HVAC&R in 1995 and won a diploma of honor in 1995 (France), a gold medal in 1999 (Canada), a diploma of honor in 2001 (Korea) and a diploma of honor in 2003 (Switzerland).
"SkillsUSA has proven to be a great contributor to the education of young people entering the HVAC&R industry for many years," said Clay Stevens, President of International Exposition Company (IEC), producers and managers of the AHR Expo. "The high level of job skill training received by these students builds higher industry standards and promotes excellence among industry technicians."
The students who will compete in the HVAC&R finals at the AHR Expo are:

• Ryan Hanna - West Virginia
• Michael Kelly - Nevada
• Shawn Wasielewski - Pennsylvania
• Bradley Webb - Kentucky

November 8 - Cornerstone Laid for TCL Wuhan Plant

TCL Group announced that it will invest an amount of over 100 million RMB to build the TCL AC Wuhan Industrial Park with an annual production capacity of 3 million units, this is the biggest investment project of the TCL Group in the field of household appliances. After more than four years accumulation, TCL is considering to strive for a new breakthrough in the AC field following color TV sets and mobile phones. TCL is surpassing the early AC makers and is growing healthily among the fierce competition.
For more than four years since its entrance to the AC sector, TCL AC has achieved a doubled growth in two consecutive years. According to the statistics of this company, in the 2004 refrigeration year, its domestic and overseas sales volume exceeded 1.5 million units, an increase of 160% against the previous year, approaching two times the growth rate of this sector, especially for export, a three-fold increase against the same period last year, thus becoming the fastest growing brand in the domestic AC sector. In the 2004 refrigeration year, TCL made a brave innovation and breakthrough in both aspects of products and marketing and thus established a differentiated product image with the most fashionable ACs and degerming function.
In operation management, TCL started the thousand-store project, proposed the concentric operation mode to provide the core competitive power common to the relevant enterprises on the industrial chain through the cooperation and information share between the industrial chain links and in the principle of profit maximization. In the face of the current fierce industrial competition, TCL AC pledges to be the "only one" in this sector, the general manager of TCL AC Hu Lixian thought that the overall operation idea of "Constant innovation, quick response and practical thinking," has made TCL AC realize its supernormal development and surpassed their early counterparts.
In the 2005 refrigeration year, TCL AC's target for domestic and export sales is 3 million units, of which the domestic sales volume is 1.5 million units and the export volume is 1.5 million units.

November 6 - York Int'l Opens R&D Center in Wuxi, China

York International Corporation launched its first research and development center in Asia Pacific, based in Wuxi, China. Wuxi is approximately 128 kilometers from Shanghai and a hub for various industries. The York Asia Pacific Research and Development Center will focus on developing leading edge technologies for solutions targeted at the key market segments - large tonnage chillers, residential, light commercial, and industrial refrigeration - in China, Asia Pacific, and the rest of the world.
"We're very excited about the commitment we are making," said Mr. Dave Myers, CEO of York International. "China is a very important market for York, and integral for our growth going forward. By establishing our first Asia Pacific-based R&D center here in Wuxi, we will be well positioned to lead in the development of emerging technologies for Asia Pacific and global markets, for several reasons. First, this center will work directly with its counterpart at our US headquarters, ensuring alignment in R&D strategy on a global basis. Second, we can leverage the established knowledge and experience of our existing China manufacturing facilities - which are the manufacturers of compressors, large tonnage chillers, airside products and commercial air conditioning equipment in China"

November 4 - Russia Ratifies Kyoto Protocol

According to major Japanese newspapers, Russia's government approved the Kyoto Protocol on global warming.
Russia's support of the protocol means it would be put into effect worldwide. It must be ratified by no fewer than 55 countries that accounted for at least 55 percent of global emissions in 1990, and Russia's participation would tip the scale.
The United States, China and some other big industrial nations have rejected the treaty. It seeks to reduce emissions of carbon dioxide and other greenhouse gases, which are widely seen as a key factor behind global warming.
As reported by Itar-Tass September 30, the Russian government approved the Kyoto Protocol at a meeting on Thursday and sent it to the State Duma lower house of the Russian parliament for ratification.
Some lawmakers are likely to continue the discussion over whether or not it is expedient for the country to ratify the document, Prime Minister Mikhail Fradkov said. Russian Deputy Foreign Minister Yuri Fedotov thinks that the refusal to ratify Kyoto would result in "both political and economic expenses" for Russia.
Some observers have speculated that Russia is jockeying for more favorable terms when rules are worked out for a mechanism under which countries that come in with emissions levels below the targets can sell pollution credits.
If Russia ratifies it, the Kyoto Protocol is likely to go into effect without the United States ratifying it. Seven years have passed since the protocol was adopted. Russia's move is indeed a big step forward after a series of twists and turns.

November 2 - Carrier Expands Manufacturing Capacity in China

Carrier Corporation, the world's largest manufacturer and distributor of air conditioning and commercial refrigeration solutions, has expanded its manufacturing presence in China with the opening of its new commercial compressor center in Shanghai. Carrier, at nearly a half a billion dollars (US) of revenue in China, is the market leader in commercial air conditioning and refrigeration. Today Carrier has 11 operations (including seven factories; three sales, service and import companies; and one management company), nearly 40 sales and service offices and more than 2,000 employees throughout China to service the growing HVAC and refrigeration needs. "With this expansion of manufacturing, Carrier continues its strong investment in the dynamic China market which we began in the mid-1980's with our first joint venture partnership. This US$15 million investment brings Carrier's total investment in China to date to approximately US$100 million," said Carrier Corporation President Geraud Darnis. "The China market demands the most advanced technology and the highest quality products and Carrier is committed to meeting and exceeding those demands." "The increased investment at Shanghai Yileng Carrier Air Conditioning Co., Ltd (YLC) allows Carrier to expand its production of large commercial compressors to meet growing domestic market and international customer requirements, especially in the Asia Pacific region," said Allan Jones, president, Carrier China at a ribbon-cutting ceremony today.
Located in Carrier's largest joint venture, the compressor center will increase current annual production capacity for large commercial compressors (reciprocating, screw and centrifugal) by 15 fold. These are for use in the commercial and refrigeration applications.
This new production facility, like all Carrier facilities in China and around the world, is specially designed to meet the company's exacting safety and environmental health standards. The new compressor center is environmentally sound, with our company's standards surpassing both US and China requirements regulating emission of manufacturing exhausts.

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