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2009 - October

Panasonic AC Tops Again in China among Overseas-funded Brands

Recently, China's Commerce Department announced the July 2009 sales data for the 'Home Appliance Subsidy Program in Rural Areas.' The sales volume showed a growth rate of 333% over the previous month. Panasonic Air-conditioner was cited first again among foreign brands, with sales of 25,940 units, which led to a growth of 462% over the previous month. Being in the top-five list of brands in the subsidy program, Panasonic Air-conditioners has made itself one of the most outstanding air conditioner brands in China.
Yang Jun, vice president of Panasonic Home Appliances Air-conditioning Co., Ltd (PHAAG), stated that the achievement was the result of long term concentration on product R&D, channel building and after-sale service. In allusion to the particularity of the rural market, PHAAG specially founded a rural-oriented team since the formal announcement of the air conditioners being on the subsidy list.
In order to expand domestic demand and carry out national policy for energy-efficiency and carbon emission reduction, the Chinese government issued policies the subsidy program, the 'Energy-Saving and People-benefit Project' (ESPP) and the 'Implementation Measures on Replacement of Household Electrical Appliances Program' to accelerate the development of the Chinese home appliances industry. Yang indicated that as a top international brand, Panasonic has a long experience with high-efficiency fixed speed and inverter air conditioners. Centering on improving consumers' standard of living, PHAAG developed different products to suit different consumers' needs. Faced with the different policies issued this year, PHAAG insisted on parallel work for both channel- and product-development. For channels, products were sold in both urban and rural areas, while for products, equal attention was paid to high-efficiency fixed-speed and inverter air conditioners. In the future, PHAAG would continue to take advantage of its international brand reputation and bring more joys to consumers throughout China.

Ebara Grabs Lion's Share of Iranian Absorption Market

Ebara Refrigeration Equipment & Systems initially expanded exports by tapping into the Chinese market, but from the 1990s the company has turned its attention to the Middle Eastern market and Iran in particular, where it has found success in marketing its absorption chiller/ heaters. Demand in Japan for gas-fired absorption chiller/ heaters has been shrinking in recent years and shifting to centrifugal chillers and large heat pump chillers. Therefore, Ebara has focused on overseas exports for its absorption units. Iran is home to large reserves of natural gas and urban areas have a developed gas supply infrastructure. Electrical infrastructure, on the other hand, continues to lag behind urban development. Convinced that gas -fired absorption units would be readily accepted, Ebara has concentrated on penetrating this market.
An example of a high-rise apartment building in Tehran where several Ebara absorption units are installed
"Among the Japanese manufacturers of gas-fired absorption chillers, we have the highest share of exports, at more than 50%. Our main market is Iran," Masakazu Fujimoto, board director, Overseas Business Division, told JARN. "Most of our deliveries are for condominiums and apartment buildings. In other words, for air conditioning buildings, some are also for industrial plant applications, but the overwhelming number of our deliveries is for luxury apartment buildings in Tehran. Up to now, we have delivered over 1,000 units to Iran and have about a 70% share of the market. The high quality of our products is recognized by customers and is the reason our products are often adopted despite the high cost," said Fujimoto.

Hitachi Beefs Up Production Capacity in BRICs

Japanese companies' overseas expansion, production and localization have reached full-scale proportions as we move into the 21st century.
Even in the face of the current global economic re- cession, Hitachi Appliances has maintained its mid-term policy of business expansion in BRICs markets, namely India, Brazil, and China. The company locally designs products to meet the needs of the respective market and reinforces operations in regions with latent growth potential. Among the BRICs, in India and Brazil annual growth of more than 10% is forecast for the mid-term. Taking advantage of its local production facilities in both of these markets, Hitachi is attempting to strengthen and expand its residential and commercial air conditioning business.
Hitachi Appliances has constructed a new factory next to its existing factory in Gujarat Province. A dedication ceremony was held on August 28, 2009, and the factory started operating at partial capacity. Full-scale operation is scheduled to begin in October.

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