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On the 3rd, a reporter learned from the Shunde Quality Supervision Department that the alliance standards developed by two heat pump companies in Shunde—Changling and Midea—may lead to a new wave of restructuring among domestic heat pump manufacturers. According to reports, Changling, Midea, and four other Chinese companies have recently introduced the "Air Source Heat Pump Water Heater" Shunde Alliance Standard. These standards are expected to serve as reference materials for future national industry standards.
**No Standard, No Industry Success**
The heat pump water heater industry is a relatively new sector that began to take shape in China around the year 2000. By the end of 2003, both sales and manufacturing companies started experiencing rapid growth. According to the technical director of the South China Institute of Electric Appliances, the domestic heat pump water heater market has maintained an annual growth rate of 30-400% in recent years. In 2008, the market is expected to reach a total output value of 10 billion yuan (3.5 million units), primarily serving households, schools, and hospitals.
The booming market has attracted numerous players. In 2006 alone, nearly 200 companies in Shunde expressed interest in entering the industry. Currently, there are about 10 companies in Shunde producing heat pump water heaters. After a surge in 2004, the market continued to grow in 2007. Industry insiders report that in 2006, the total sales of the heat pump water heater industry reached approximately 600 million yuan. In 2007, sales are expected to rise to between 700 million and 1 billion yuan, with an annual growth rate of around 10%.
However, the market expansion has not been without challenges. Cai Lingming, general manager of Changling, told reporters that many “screw factories†exist in the industry. These small-scale operations can assemble products using just a screwdriver, leading to poor product quality and performance. This has eroded consumer confidence in the entire heat pump industry. A representative from the South China Institute of Electrical Appliances stated that the root cause lies in the lack of standards. To date, there are no written regulations or market access systems in place, allowing low-quality producers to flood the market.
**A New Era of Production Standards**
Shunde has long been a key region for heat pump water heater manufacturers, and it has taken the lead in standardization efforts. Since 2006, six companies, including Midea and Changling, have participated in developing the Shunde Alliance Standard. Recently, they launched the "Air Source Heat Pump Water Heater" Shunde Alliance Standard, which has drawn attention nationwide. The National Standards Committee has also begun related research, and the two companies have become deputy leaders in the national standard drafting working group.
According to sources, the two Shunde-based heat pump companies recognize the importance of standard competitiveness and have developed a standardization strategy. They aim to use these standards to guide the direction of industry development, shifting competition from price-based to quality-based. Cai Yuming believes that the introduction of standards will raise industry barriers, promote standardization, and encourage the exit of small manufacturers without core technology.
It is reported that the national standard for household and similar-use heat pump water heaters is currently in the final revision stage. Once issued, the industry will enter a new era of standardization, promoting healthier and more sustainable growth.