Chongqing times, December 14, 2009

Our news (reporter Liu Yi) the volumetric gas water heater made in Chongqing has recently passed the Aga certification of Australia, the highest international standard, and obtained the pass to enter the global high-end water heater market. The reporter learned from our city Sanwen Electric Appliance Co., Ltd. that as the only enterprise in China that has passed this certification, Sanwen's goal is a global market with sales of up to 10 billion US dollars.

Turn to high-end products under the financial crisis

"The financial crisis is fierce, and we have been greatly affected." Luo Xia, vice chairman of Sanwen, admitted that the brand began to export water heaters in 2007. After September last year, the business of the main export places Philippines and Australia was seriously blocked, and the export volume decreased by more than 60%.

After the crisis, Sanwen captured important information from the Canton Fair. The demand for volumetric water heaters in Australia is still strong, so the company's R & D direction is gradually adjusted to differentiated products that competitors can't imitate. It has developed the first domestic condensing volumetric gas-fired water heater and passed the certification in Australia.

With the continuous follow-up of high-end R & D, the state's stimulus policies have also helped three warms. The reporter learned that thanks to the national policy of expanding domestic demand, some export orders have been digested in China. This year's sales revenue will increase by more than 20% over last year, and 200 new employees have been recruited without layoffs.

Target: 10% of Australian market

"New products are already talking about joint ventures with businesses in Australia." Luo Xia told reporters that volumetric gas water heaters are more popular in developed countries. For example, the Australian government subsidizes 50% of the cost of such products and vigorously promotes them. Such attention is due to its environmental protection characteristics. At the same time, the exhaust emission of a fast gas water heater (that is, an ordinary water heater in citizens' homes) is equivalent to 50 volumetric water heaters.

The annual demand of volumetric water heaters in Australia is 650000 units. Sanwen has received the first order of 1000 units. If the cooperation with local businesses in Australia is negotiated, it will strive to occupy 10% of the Australian market in the future.

It is reported that in order to cater to the Australian market, Sanwen is developing a new solar water heater and will enter Australia as a government subsidized environmental protection product in 2010. The annual sales volume of such high-end water heaters in the global market is as high as 10 billion US dollars.

Grow under the pressure of competitors

Volumetric water heater was originally a high-end product that only foreign manufacturers would make, so we became a troublemaker in the market. Luo Xia said that when the company entered this market five years ago, the slogan of its competitors was to kill it. There are only two foreign manufacturers selling condensing volumetric gas water heaters in China. After the technical monopoly was broken, they came up with the method of price war.

Luo Xia said that in Chengdu, which is very close to Chongqing, the price of this water heater is much more expensive, but the price is cheaper in Chongqing because of the existence of three warmth. However, after five years, the warmth has not been defeated by the price war, but has entered the global market. It is reported that Sanwen is currently building a new plant, and the production capacity will increase from the current annual output of 50000 units to 100000 units.