China Situation: 2. AC compressors
Published Feb 2006
(1) Rotary Compressors
Almost all the leading AC compressor players in China did well in the first half of the 2005 refrigeration year. The export growth of room air conditioners (RACs) resulted in a good production conditions for compressors makers. Most successfully completed their production plans. However, because there was a sharp decrease in exports to the overseas market and no obvious sales increase in domestic RAC market, the production of rotary compressors for RACs dropped to some extent in the second half of the 2005 refrigeration year. About 50 million AC compressors were sold in the whole refrigeration year. Shanghai Highly took the lion鈥檚 share with sales of more than 10 million units. Meizhi, LG, and Matsushita also took considerable market shares. Rechi, Mitsubishi Electric Corp. (Melco), Sanyo were busy with their market developments. The price growth of raw materials increased the production cost of compressors and the longlasting price decline of air conditioners definitely had negative effects on the profit margin of the compressors. The revaluation of the RMB in the second half of the 2005 calendar year will encourage more foreign compressor makers to sell their products in mainland China.
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