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Sales are in full swing
“Since the beginning of 2007, we haven’t had a rest day and we have been working overtime every day. Even so, there are still many orders that we can’t meet, and we are afraid we can’t guarantee the delivery time. At present, we can only guarantee strategic cooperation. 80% of the demand.†A small state-owned refrigeration compressor company sales veterans describe the sales of refrigerator compressors in 2007.
According to statistics, in 2007, the sales of various refrigerator compressor companies have increased in different ranges. According to related personnel of Huangshi Dongbei Refrigerator Compressor Co., Ltd., the sales growth of Huangshi Dongbei Compressor reached 61% compared to the first three quarters of 2006. The relevant person in charge of the Garciabella Compressor Company also stated that the sales growth of the company in the first half of 2007 was also more than 20%, while relevant personnel of Xi'an Kelon Refrigeration Co., Ltd. and Qianjiang Refrigeration Compressor Co., Ltd. stated that it was 2007. Year-on-year sales of refrigerator compressors increased by as much as 200%.
It is understood that the sales volume of Beijing Embraco Snowflake Compressor Co., Ltd., Huayi Compressor, and Guangzhou Refrigerator reached 5 million units in 2007, a significant increase from 2006. People in the industry believe that the overall demand is strong, especially the increase in demand for low-end refrigerators in the rural market, which provides a good opportunity for many refrigerator compressor companies with relatively backward technology.
According to expert analysis, the reason why demand for refrigerator compressors has grown so dramatically is mainly due to five reasons. First, due to special factors, the indirect export volume of compressors increased. “This special factor refers to the export orders of Cuba’s 3 million refrigerators. Haier’s and other enterprises’ refrigerator production soared in 2007.†Second, the acceleration of new rural construction has increased the demand for refrigerators in the rural market. It is understood that there is a workshop refrigerator factory in Zhejiang. In 2006, the output was only tens of thousands of units. In 2007, there were actually 300,000 units, which were all sold to the rural market. This shows that the rural market demand is very large, and some mainstream refrigerator companies are also developing such tertiary and tertiary markets. Third, the increase in the use of products has also led to the diversification of compressor supplies. Compressor products have started to be used on a large scale in drinking fountains and ice cream machines. With only one drinking fountain, China currently needs 3 million to 4 million compressors. This market was previously absent or in small quantities. This undoubtedly expands the development space for refrigerator compressor companies, and the market for drinking fountains and other products is also increasing year by year. Fourth, due to China's cost advantage, international procurement of spare parts for refrigerators is also shifting to China. Electrolux and other European companies have purchased parts directly in China, and some Japanese companies even plan to transfer their refrigerator production lines to China. Fifth, the increase in supermarkets has opened up sales of commercial refrigerators and other products, and the corresponding demand for refrigeration compressors has also increased.
Domestic companies busy expanding production
The strong market demand has forced many compressor manufacturers to share larger market cakes in ways that increase production capacity.
Midea Electric apparently will not miss this market opportunity. The company recently issued an announcement saying that they have started preliminary planning for the refrigerator compressor industry. The investment site was initially scheduled to be located in Hefei, Anhui Province. However, the announcement also pointed out that the negotiations and projects of the investment partners involved in the project have not yet been completed. Feasibility analysis and demonstration work. The person concerned of the United States and electrical appliances said that Midea Electric will sign a land transfer agreement with the Hefei High-tech Zone Management Committee for the establishment of a refrigerator compressor factory.
Huang Shidongbei related personnel said that by the end of 2007, Dongbei plans to increase production capacity of 1.5 million units in the factory, and Wuhu plant will increase production capacity by 1.5 million units, and plans to add 3 million units of annual production capacity. After the expansion, the total annual production capacity of Huangshi Dongbei will reach 8 million to 9 million units.
The person in charge of Guangzhou Cold Machine said that in order to increase the competitiveness of the company, Guangzhou Cold Machine will also fully deploy the expansion plan. They added 2 million new production capacity in Hefei, Anhui Province, and started production at the end of 2007. At the same time, 1.5 million to 2 million new production lines in Qingdao, Shandong Province will be put into production at the end of 2007. In this way, by the end of 2007, there will be at least 8 million units of annual capacity in Guangzhou.
Strong demand for market sales of small compressors
As the refrigerator industry is “flying red†across the board, the sales of the small refrigeration compressor industry in 2007 also followed. According to statistics, as of November 2007, sales in the refrigerator industry continued to increase, and total sales increased by nearly 10% from the previous year. Statistics from the General Administration of Customs show that refrigerator exports increased by 23% year-on-year in the first three quarters of 2007. Information from various refrigerator manufacturers also shows that most companies have been producing at full capacity.