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January 31 - Gree Enters Strategic Alliance with Baosteel

Recently, China's biggest AC enterprise, Zhuhai Gree Electric, signed a strategic cooperative agreement with China's biggest iron and steel enterprise, Shanghai Baosteel Group Corporation in Zhuhai, to establish a strategic alliance between them. It is learned that this is another act of Gree to attempt to control upstream resources after it gained control of the companies of the AC core components and compressors.
According to the introduction, the cooperative agreement covers the general framework for the cooperation between them in such aspects as steel supply, technical development, steel processing, enterprise management, etc. Gree Electric explained that?Baosteel was previously the biggest steel supplier to Gree Electric and Gree Electric was an important customer of Baosteel.
Gree's annual production capacity has reached 10 million AC units.

January 29 - HRAI and CIPH Agree to Produce 2006 CMX/CIPHEX Show

Chair John Murphy (J.E. Murphy ClimateCare) of the Heating Refrigeration and Air Conditioning Institute of Canada (HRAI) and Chair Mike Dennis (Moen Inc.) of the Canadian Institute of Plumbing and Heating (CIPH) announced that an agreement has been reached between the two associations to produce a joint CMX/CIPHEX trade show in Toronto in the spring of 2006. Managed by Shield Associates Limited, the show will be held March 23-25, 2006 in the North Building of Metro Toronto Convention Centre (MTCC).
The national trade show and learning forum will feature products and services from the air conditioning, heating (forced-air and hydronic), plumbing, industrial, waterworks, water quality, piping, refrigeration and ventilation industries.
"This agreement will provide a world-class Canadian trade show for the mechanicals industry for both exhibitors and attendees" stated Murphy, "We are pleased to be joining with CIPH in this important industry event."
"Combining our strengths, a joint CMX and CIPHEX Ontario trade show under one roof will provide the exhibitors and the attendees with the opportunity to maximize their tradeshow investment", reported Dennis.
Exhibit sales will commence in early 2005 and the two associations are anticipating that the show will have more than 500 exhibitors reserving over 1000 booths. Trade attendance is forecasted to top 15,000.

January 27 - 2004 Japanese Domestic Shipments

The Japan Refrigeration and Air Conditioning Industry Association (JRAIA) has recently announced domestic shipments in RY 2004 (Oct. 2003 - Sept. 2004).
RACs Remain Level
The domestic shipments of room air conditioners (RACs) in RY 2004 totaled 6,723,072 units, down 0.8% from RY 2003, remaining almost level.
Those of heat pump type units showed a 0.7% drop, almost remaining level with RY 2003, while those of coolingonly type units incurred a 6.2% drop.
In the Japanese market, the heat pump units occupy 98.7% of total RAC shipments, and the number of cooling-only units is practically negligible.
The domestic shipments of packaged air conditioners (PACs) in RY 2004 totaled 731,795 units, up 11% over RY 2003. Heat pump units occupied 92.2% of the total, and coolingonly units account for the remaining 7.8%. In the PAC segment, too, the share of the heat pump type has increased in recent years.
Other Shipments
The domestic shipments of ice thermal storage PACs in RY 2004 numbered 6,915 units, down 11% from RY 2003.
While those of gas engine driven heat pumps (GHPs) accounted for 39,703 units, down 4.4%, their total capacity increased to 1,638,785 kW, up 1.5%.
This means that the system capacity per unit has increased.
The domestic shipments of positive displacement chillers numbered 8,878 units, up 3.2% over RY 2003. Those of water-cooled cooling-only units showed a 6.6% rise, air-cooled cooling-only units a 7.2% rise, while those of air-cooled heat pump units showed an 8.2% drop.
Although chillers in this segment were formerly used much for building air conditioning systems, the share of chillers used for industrial process cooling has increased recently, and shipments of those for air conditioning are decreasing.

January 25 - Midea Acquires Hualing, Guangdong, China

On November 19, Midea Group and Hualing Group jointly announced that Midea Group acquired 42.36% in shares of the Hualing Group whose shares are totally held by the Guangzhou International Group, thus becoming the big controlling shareholder of the Hualing Group.
According to the report of "Nanfang City Daily" on November 22, the Hualing Group proclaimed on the Hong Kong Stock Exchange on November 22 that five persons of Midea Group such as Midea Group's vice president Mr. Fang Hongbo, vice president of Midea Refrigeration Division Mr. Liu Liang, will officially become its executive directors or non-executive directors. It has been learned that this appointment took effect from November 17. Midea expressed to the public that Hualing's orientation in the refrigeration industry will not change, the Hualing brand will maintain its independent operation while continuing its use, and will make full use of the platform and resources of Midea Group so as to realize mutual supplementation of their advantages in the aspect of scale and benefits.
Midea Group is one of the largest production bases for household appliances in China at present. Its products cover many fields such as ACs, electric fans, electric cookers, microwave ovens, electric room heaters, cookware, minia- ture motors, compressors. Midea owns the biggest and most complete industrial chain for ACs in China, its output and sales volume of electric motors for ACs occupy the first place in China and its output of compressors stands ahead in this sector in China.

January 23 - AeroLogic Air Duct Disinfection Systems

Atlantic Ultraviolet Corporation, USA, has released AeroLogic(TM) Air Duct Disinfection Systems.
AeroLogic(TM) Air Duct Disinfection Systems are ultraviolet fixtures utilizing germicidal lamps to protect personnel from potentially harmful airborne contaminates by effectively destroying airborne microbes including bacteria and virus in new or existing forced-air duct systems. Desired bacteria kill rates of 80% for residential installation, 90% for the average commercial installation or 98% kill rates essential for hospitals and pharmaceutical laboratories can be achieved using these type fixtures. Units are constructed of tough, corrosion-resistant 304 Stainless Steel to insure long life.

January 22 - Toshiba Carrier Acquires 20% of Midea AC Division

Toshiba Carrier Corporation (TCCJ) completed the deal to acquire 20 percent of Guangdong Midea Electric Appliances Co., Ltd., Air Conditioning Division ("Midea Air Conditioning").
Midea Air Conditioning has sales of $1.2 billion. It is the second largest air conditioning company in China and is well positioned in both the residential and light commercial markets.
Under the terms of this agreement, Midea Air Conditioning will produce residential and light commercial air conditioners primarily under the Midea and Toshiba brands, as well as air conditioners for original equipment manufacturer (OEM) customers. In addition, it will distribute Midea and OEM branded products.
Production of air conditioners under the Toshiba brand was scheduled to begin December 2004. By 2005, production capacity is planned to reach about 10 million units for both the Midea and Toshiba brands.
Midea Air Conditioning will provide Carrier and TCCJ with a competitive production base to serve markets outside China, including Japan, as well as opportunities to develop competitive sourcing of components.
The partnership between the Midea group and TCCJ dates back to a first joint venture for rotary compressors established in 1999. In April 2004, as reported in JARN, a new joint venture for rotary compressors was established, extending total manufacturing capacity to seven million units.

January 20 - Kyocera Opens For PV Production Facility in Mexico

In December 2004, Kyocera Solar, Inc. held a ribbon-cutting ceremony to officially inaugurate its new solar product assembly operations at the existing Kyocera Mexicana, S.A. de C.V. maquiladora plant in the Tijuana Industrial Park, located at Blvd. Buena Vista Otay No. 2055, Mesa de Otay, Tijuana, B.C. Mexico.
The Kyocera facility manufactures solar photovoltaic ("PV") modules - rectangular, roof-mountable panels that convert sunlight into a clean, silent source of renewable electricity. According to industry research firm Solarbuzz, Kyocera was the world's No. 2 producer of PV modules in 2003. The new Tijuana assembly line is part of a global expansion Kyocera announced in September 2004 that will double its PV module manufacturing capacity, to 240 megawatts per year, during 2005.
Production of PV modules commenced at the Tijuana plant in November, targeting California's fast-growing market for commercial and residential solar PV systems. During 2005, the facility is expected to reach an annual production capacity of 36 megawatts of PV modules -- enough to provide a 3.5-kilowatt PV system for more than 10,000 homes each year.

January 18 - ASHRAE Publishes Refrigeration Safety Standard

ASHRAE, Atlanta, USA, has published its 2004 refrigeration systems safety standard, which establishes procedures for operating equipment and systems to assure the safety of building occupants and system technicians.
ANSI/ASHRAE 15-2004, Safety Standard for Refrigeration Systems, includes clarifications to the application of safety relief valves for pressure vessels as well as the addition of flammable refrigerant restrictions in comfort cooling applications that were omitted from the 2001 standard. In addition, references utilized in the standard were updated.
"Significant changes were made in the area of safety relief venting in the 2001 standard," Doug Reindl, chair of the Standard 15 committee, said. "These changes led to further questions in the area of relief valve applications for larger vessels. The new standard clarifies requirements for the application of safety relief valves on larger vessels in excess of 10 ft3. The new wording on relief valve requirements for larger vessels removes any ambiguity."
The standard includes prohibitions against the use of flammable refrigerants for applications for human comfort. The revision was made to these requirements to correct an omission in the 2001 standard, Reindl said.
Standard 15 was first published in 1919 as Tentative Code for the Regulation of Refrigerating Machines and Refrigerants in recognition of the need for cities and states to enact safety regulations.
The cost of ANSI/ASHRAE Standard 15-2004, Safety Standard for Refrigeration Systems, is $37 ($29, ASHRAE members).

January 16 - LonMark to Host Free Seminars at AHR Expo 2005

LonMark International will host four education sessions at AHR Expo 2005 on Tuesday, February 8 in Room S230F at the Orange County Convention Center. The free education sessions are part of an on-going initiative by LonMark International to help facility professionals make better use of open systems in their careers.
Contractors' Dilemma: Is Systems Integration Right For You?
8:30 am - 10:00 am, Room S230F
Session Overview
This panel discussion will help contractors wade through the issues, risks and rewards associated with systems integration, including how open, standard protocols impact contractors' business options in the construction of today's integrated buildings.
Benefits of Open Systems: End User Panel Discussion
11:00 am - 12:15pm, Room S230F
Session Overview
This panel discussion will include "real life" experiences on open systems and delve into a number of key issues, including key objectives with the decision to go with open systems; the open system selection process; writing the specification; the bidding process; systems integration; and living with the results.
Introduction to Whole Building Automation
1:00 pm - 2:30 pm, Room S230F
Session Overview
This panel of industry experts will address the key issues of whole building automation, including open systems specifications, equipment sourcing, systems integration, and maintenance.
The Value LonMark Open Systems
3:00 pm - 4:30 pm, Room S230F
Session Overview
This session will address the key components of the LonMark open system including the protocol, communication media, devices and controllers, network tools, routers and gateways and management interfaces.

January 14 - Toshiba to Donate 22 Million Yen for Tidal Wave Relief

Toshiba Corporation last month announced that they would express their condolences to the victims of devastating earthquake and tidal waves that hit Indonesia and neighboring countries across South Asia on December 26 with a 22 million yen donation in support of ongoing relief efforts.
Toshiba will donate 10 million yen to the country of Indonesia and 12 million yen in total to the countries of Thailand, Malaysia, India and Sri Lanka through the embassy of respective countries in Japan. In addition to the donation from Toshiba's headquarters office in Tokyo, overseas subsidiaries in the region plan to provide immediate assistance in the form of food, clothing and other goods needed for the emergency relief.

January 12 - Hitachi to Donate 20M yen for Asian Earthquake and Tsunami Relief

Hitachi, Ltd., Tokyo, announced December 29 that the company has decided to donate a total of 20 Million yen in disaster relief in the Disasters Caused by the Large-scale Earthquake off the Coast of Sumatra, Indonesia, and the Tsunami in Neighboring Countries. Details and allocation of the funds will be determined upon confirmation of conditions in the various disaster areas. Additional monetary and product donations are currently being discussed by local Hitachi subsidiaries in the affected regions.

January 11 - Visit AHR Expo 2005

AHR Expo - the HVAC&R Industry Show!
As the world's largest HVAC&R marketplace, AHR Expo is the primary showcase where leading manufacturers as well as new entrepreneurial companies display the latest HVAC&R systems, equipment, components, related products and services.
More new products are launched, new technologies introduced and new corporate initiatives announced at AHR Expo than at any other industry event. And AHR Expo is where more HVAC&R professionals from throughout the world come to buy and sell, network and learn.

January 9 - Matsushita to Build New AC Plant in China

Matsushita will increase production of household air conditioners (ACs) in China. By constructing a new factory on the premises of its joint venture company in Guangzhou City, the company plans to increase the overall production capacity to 3.5 million units/year, up 60% over the current capacity, according to a Japanese trade newspaper. The increased production will be realized at Guangzhou Matsushita Air- Conditioner Co., Ltd., Guangzhou City, Guangdong Prov. The new factory will be put to operaton in May next year. The existing factory will intensively produce small models, while the new factory will produce large models and alsso serve as a warehouse of components/parts. The company intends to expand the production capacity to 3 million units/year in 2006 and eventually prepare a system for producing 3.5 million units.

January 8 - Symposium on Refrigerants and Environment

The Japan Refrigeration and Air Conditioning Association (JRAIA) held an International Symposium on New Refrigerants and Environmental Technology 2004 from November 25 - 26 at the International Conference Center Kobe, Japan.
Mr. Junji Esaka, JRAIA Chairman, delivered an opening address, saying, "It has become clear that, with the ratification of the Kyoto Protocol by Russia, it will be put into effect next year. Since Japan's greenhouse gas emissions are far beyond the level specified in the Protocol, both the refrigeration and air conditioning industry and automobile industry must endeavor even more to reduce greenhouse gas emissions. We expect this symposium to contribute greatly to the sustainable development of our industry while preserving the environment."
Mr. Teturo Kishimoto, President, JRAIA, delivered the keynote address on the JRAIA's measures for environmental issues in the refrigeration and air conditioning industry. Then, Mr. Friedrich P.
Busch, Director General, the European Partnership for Energy and the Environment (EPEE), delivered a speech entitled "The Voice of the European HVACR Industry - its role in European political decision making." Then, the Symposium proceeded to the Technical Session: Natural and New Refrigerants. Other technical sessions were also held under the themes such as environmental issues, automotive air conditioners, lubricant and compressors, energy conservation and rational use of energy, where a total of 42 papers were presented for two days, and discussions were made over these papers.
Technologies for natural working fluids utilization seem to have become a kind of fashion as study themes, and the results of interesting research such as "Development of a CO₂ Cooling System" (Sanyo), "CO₂ Heat Pump Cycle for Water Heater Systems with High Pressure Type Scroll Compressor" (Matsushita), and "Feasibility Study on Secondary Coolant System with Super Critical CO₂" (MHI) were presented.
Presentations on research related to energy savings were also made by engineers of major manufacturers such as Daikin, Hitachi and Mitsubishi Electric Corp. (Melco).

January 7 - ASHRAE Publishes 2004 Residential IAQ Standard

Standard 62.2-2004, which contains the first changes resulting from continuing maintenance proposals from the public, has been published by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).
Additionally, the American National Standards Institute (ANSI) Board of Standards Review recently denied appeal of the standard, thereby upholding its earlier approval.
ANSI/ASHRAE Standard 62.2-2004, Ventilation and Acceptable Indoor Air Quality in Low-Rise Residential Buildings, is the only nationally recognized indoor air quality standard developed solely for residences.
The 2004 standard contains changes made via two addenda, which are the first changes resulting from continuing maintenance proposals from the public. The standard no longer contains combustion appliance backdrafting test requirements. The test included in the 2003 standard was based on the best industry-accepted method found in the National Fuel Gas Code but questions arose about its application to solid-fuel burning appliances, according to David Grimsrud, chair of the committee that wrote the standard.
There also was concern about it not being possible to perform the test until the home is completed, opening the potential for having to perform remedial balancing at a difficult stage of construction and sale, he said.
While the test requirements have been eliminated, the standard sets an upper limit of exhaust flow to 15 cfm/100 square feet when natural-draft combustion appliances are present.
The standard also contains a change in climate zone terminology from "severe cold climate" to "very cold," which is now defined as one that has more than 9,000 65°F degree-days.

January 5 - Home-Use Humidifier Market in Japan

In Japan, humidifiers have become daily necessities in winter when it tends to be dry. Recently, the market has been expanding centering around the hybrid type which realizes energy saving and clean humidification. Already, all makers have finished business talks on new products for winter 2004, and total demand for 2004 is predicted to reach 1.3 million units, up 7.2% over the previous year. Some trade people say the total market is sized at around 1.6 - 1.7 million units when minor brands are added.
Growing hybrid type
Humidifiers are broadly divided into the hybrid type (heating & natural vaporizing system), heatless fan type (natural vaporizing system), and steam fan type. Demand for the ultrasonic type has dwindled considerably.
Recently, demand for the hybrid type has been increasing in particular, as it realizes energy savings and clean humidification.
While demand for the hybrid type sized at about 84,000 units in 1999, the hybrid models with over 500 ml/h type are expected to hold a 58% (535,000 units) market share in 2004.
Hybrid humidifiers combine quick humidification by heating with lowpower consumption and humidification by vaporization. After increasing the humidifying capacity by heating water or air when necessary, it keeps optimum humidity by vaporization so that power consumption can be cut down.
Some makers, seeing that the hybrid models now form the mainstream, have replaced all humidifiers with above 500 ml/h by the hybrid type. Since 1999 when Matsushita launched the hybrid type for the first time in the industry with energy savings as its feature concept, other makers followed suit, thus raising the share of this type. Its share is expected to increase further in the humidifier market.
There are still deep-seated needs for conventional humidifiers which discharge warm steam. So, there are makers who are adding new steam fan models to their lineups.

January 3 - The World's Largest HVAC&R Event Goes To Orlando

AHR Expo - the HVAC&R Industry Show! As the world's largest HVAC&R marketplace, AHR Expo is the primary showcase where leading manufacturers as well as new entrepreneurial companies display the latest HVAC&R systems, equipment, components, related products and services.
More new products are launched, new technologies introduced and new corporate initiatives announced at AHR Expo than at any other industry event. And AHR Expo is where more HVAC&R professionals from throughout the world come to buy and sell, network and learn.
The AHR Expo provides an educational experience vital to company growth and continued professional development: ASHRAE's Winter Meeting and short courses as well as seminars and programs presented by other major industry associations. AHR Expo moves to a different venue each year to capitalize on regional marketing opportunities. In 2005, the Show will be held for the first time in Orlando, Florida, USA.
Location
The 2005 AHR Expo will be held in the North/South Building, South Entrance of the Orange County Convention Center.

January 2 - Trane Announces Price Increases in Response to Rising Metals Costs

Trane Air Conditioning (China)last month announced price increases of 3 percent to 5 percent for its heating, ventilation and air conditioning products lines throughout Asia beginning Jan. 1, 2005. "The price of commodity metals used by our industry - steel, aluminum and copper - have reached unprecedented levels," said Francis Yuen, president, Trane Asia. "In one year, steel prices alone have risen more than 40 percent. Copper prices are up 32 percent and aluminum prices are about 20 percent higher year-over-year. Although we have offset much of the rising materials costs with our continually improving productivity, we regrettably must share some of these cost increases with our customers.
The outlook for metals prices in 2005 remains unchanged, and the business expects commodity prices to continue to rise. "Our materials purchasing and productivity initiatives are improving our operating cost structure and will continue to help mitigate pricing levels," said Yuen.
Trane has manufacturing operations in four Asian countries - China, Malaysia, Taiwan and Thailand. In China alone, Trane has 31 sales offices and seven service centers. In March, the business opened an Asian research and development center in Shanghai. "Our growing investment in Asia reflects our confidence in the economic future of this region," said Yuen.

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