Air-conditioner manufacturers: Returning Chinese production to Japan
-Hitachi, Daikin and Panasonic move away from China-
-Supply network disruptions due to the corona crisis in China-
We will deliver a summary from the articles posted on JBpress.
Returning Air Conditioner Production to Japan:
Hot weather is expected to continue in the future.
The company is making progress in returning air conditioner production to Japan and strengthening its domestic base.
Moving away from China in air conditioner production:
An unprecedented heat wave continues. The shift away from China in the production of air conditioners has progressed.
China’s response to the corona crisis:
Japanese manufacturers have experienced supply chain disruptions in China due to the corona crisis.
The perception changed to that “stable supply” is more important than “cheapness”.
Disaster and geopolitical risks:
The production ratio in Japan is expected to rise across the board.
Air conditioner shipments in Japan:
In 2006, domestic shipments of home air conditioners in Japan amounted to 7.52 million units.
In 2022, shipments will grow to 9.06 million units.
Demand is expected to grow in the Japanese domestic market in the future.
Hitachi leaves China:
Hitachi-Johnson Controls Air Conditioning Company produces air conditioners.
This spring, we transferred the high-end models from China to our Tochigi plant in Japan.
Other models will also be returned to Japan.
The Japanese production ratio will rise from 30% to 50% in FY2024.
Reason for transfer to Japan:
If it is made in Japan, the procurement period can be shortened to one-fifth.
However, for risk diversification, the entire amount will not be returned to Japan.
Continue “bridge production” between Japan and China.
Daikin also leaves China:
On August 2, the company established a production base for air conditioners in Ibaraki Prefecture.
This is the first time to set up an air conditioner production base in the Kanto region.
From 2027, the company will start producing air conditioners for home use.
daikin air conditioner
Daikin has the top market share for home air conditioners.
Production bases are located in Sakai City, Osaka Prefecture and Kusatsu City, Shiga Prefecture.
Panasonic also leaves China:
It is currently produced at the Guangzhou plant in China.
Production of high-end and middle-end models will be transferred to the Kusatsu plant.
On June 22, the company announced that it will produce high-end residential air conditioners in Japan.
Corona disaster in China:
The corona crisis in China lasted for three years.
Japanese companies were unable to procure parts in China.
The lockdown in Shanghai, in particular, has done a great deal of damage to Japanese manufacturers.
Lessons from Covid-19:
Low production costs alone are not the source of competitiveness.
It is also important to accurately grasp customer needs and shorten delivery times.