21st Century Business Herald reporter takes great care to report from Shanghai
Johnson Controls has been in the Chinese market for nearly 30 years, and it can be said that we have grown together with the Chinese market, "Anu Rathninde, President of Johnson Controls Asia Pacific, said in an interview with 21st Century Business Herald.
"Since entering the Chinese market nearly 30 years ago, Johnson Controls has been actively responding to China's high-quality and sustainable development strategy, fulfilling its long-term commitment to the Chinese market, adhering to local innovation, local manufacturing, local cooperation, and serving the local and global based on the local," said Long Zhiwen.
Lang Zhiwen also emphasized that "the process of localization is not a copy and paste process, it needs to meet the actual needs of the Chinese market
Localization tailored to local conditions
Driven by the dual goals of "dual carbon" and the development of new quality productivity, the Chinese industrial refrigeration and industrial heat pump market is flourishing, and market demand is constantly expanding. Energy conservation and emission reduction are also becoming the focus of attention in the refrigeration and heating industries.
In terms of industry, industrial heat consumption accounts for over 60% of China's total heat consumption, making it the main area of heat consumption in the country. As clearly stated in documents such as the "14th Five Year Plan for Building Energy Efficiency and Green Building Development", it is necessary to "actively promote the application of energy-saving technologies such as heat pumps". This is because heat pumps can recover waste heat from industrial processes and reuse it, greatly reducing energy consumption and carbon dioxide emissions.
As an efficient energy conversion device, heat pumps can replace traditional boilers and meet the clean heating and cooling needs of various fields. The International Energy Agency predicts that by 2030, the capacity of heat pumps in buildings worldwide will increase from 1000GW in 2021 to 2600GW, accounting for 20% of all building heating demand and reducing global building carbon emissions by 500 million tons.
Johnson Controls is committed to achieving sustainable development through clean heating products and technological solutions. In terms of heat pump technology, it has a diverse range of high-temperature heat pump product lines.
Industrial refrigeration also faces environmental protection and emission reduction requirements. At the international level, the Montreal Protocol on Substances that Deplete the Ozone Layer requires the use of natural carbon hydrocarbon refrigerants.
Currently, there is a new round of innovation in global cold and hot technology, and compressor technology is a key link in the development of cold and hot technology.
On August 15th this year, Johnson Controls unveiled its York M multi-stage centrifugal compressor global manufacturing center in Wuxi. The factory produces "high-temperature high displacement multi-stage centrifugal heat pump compressors" and "M-series multi-stage centrifugal low-temperature refrigeration units", which have significant technological innovation and improved efficiency compared to the previous generation of products.
It is worth mentioning that the establishment of this factory means that Johnson Controls will transfer its global manufacturing center for M multi-stage centrifugal compressors to China. As most of the core components of the centrifugal compressor have been procured and produced locally in China, the product has basically achieved localization in manufacturing.
It is reported that currently, 100% of Johnson Controls' HVAC and refrigeration products sold in China are locally produced, and over 96% of its engineering research and development capabilities are achieved locally in China.
In the process of achieving localization at the manufacturing level, we have conducted a lot of technical communication and certification work, which has not only driven our growth, significantly reduced our costs and supply cycles, but also promoted our local partners to deepen cooperation with us. This cooperative relationship has promoted the development of the entire industry chain, "said Lang Zhiwen.
Explore the market space of existing construction stock
It is worth mentioning that Johnson Controls is continuously involved in the construction of smart and green cities in China, as well as local sustainable development. Among the top ten high-rise buildings in China, Johnson Controls provided building solutions for 9 of them.
Lang Zhiwen told 21st Century Business Herald reporters that the carbon emissions in the construction industry account for about 40% of the total global carbon emissions, and reducing building emissions is one of the important ways to achieve global climate goals. And China has the world's largest construction market, making buildings smarter, healthier, and more sustainable is crucial for achieving low-carbon growth in China.
He admitted that although the current Chinese market is indeed facing the challenge of slowing down demand in the real estate market, it also brings a turning point for the development of Chinese cities and the construction industry to update and upgrade.
Starting from this year, the Chinese government has clarified innovative methods and approaches for central finance, supporting some cities to carry out urban renewal demonstration work. The transition from "urban-rural construction" to "urban renewal" reflects the shift from incremental construction to stock management, and urban development has entered a critical period of stock renewal.
According to Lang Zhiwen, Johnson Controls closely follows this trend and practices the concept of "organic renewal of buildings" to make buildings more energy-efficient and intelligent. By combining high-efficiency unit equipment, intelligent control systems, and digital intelligent management platforms, we can provide customers with comprehensive energy efficiency improvement solutions centered on energy-saving transformation and intelligent operation and maintenance.
For example, Johnson Controls collaborated on the Shanghai Bund No. 3 comprehensive energy-saving renovation project using a contract energy management model that shares energy-saving benefits, helping the building complete the renovation and upgrading of existing building software and hardware.
In addition to the existing market, Johnson Controls is also exploring the incremental market. Lang Zhiwen told reporters that Johnson Controls will further invest in urban digital transformation, data center solutions, digital intelligence integration services, and energy transformation in the future.