Sanhua celebrates jubilee: 30 years of market success

The company history of Sanhua, HVAC (Heating, Ventilation and Air conditioning) components and controls manufacturer, is characterised by major milestones. Two hundred employees have become 12,000, half a million US dollars in revenue grew to 2 billion and what started as a small assortment has expanded to a wide range of tested products. Today, Sanhua has operated for exactly 30 years and can look back on constant growth. From its beginnings as a small manufacturing site for refrigeration engineering components, the company has developed into a competitive global player. Sanhua is close to reaching its goal: to be represented in all European markets. Both consolidation and further cooperative ventures are planned – particularly in Germany.

Exactly three decades ago, Sanhua was still a tiny production site. Today, it is a publicly traded company represented around the world. The manufacturer, based in Xinchang (China), has every reason to celebrate this milestone. But what is the secret of its success? “First and foremost, we orient our work towards the needs of the customers,” says German Cifuentes, Marketing Manager of Sanhua Europe. “That is the only way we can provide the best possible service, guarantee our reliability and develop innovations that are really needed.”

The company has invested in many things, notably its workforce – which has grown over the years from 200 to more than 12,000 employees. At the same time, the company has improved the production, which was initially manual. Currently, it is for the most part fully automated. The quality control measures are also strict. Research and development are also key elements of Sanhua’s business. “We are putting almost 4% of our revenue into our own research and development centre,” comments German Cifuentes. “Two hundred engineers and experts work on projects, improve the efficiency of products and conduct quality checks. We hire the best and brightest in the field, from local universities, for internship experiences in order to ensure a smooth succession. All this makes Sanhua fit for the future”.
 
Not only that, the company's acquisitions. In 2007, for example, Sanhua acquired the valve production division of Ranco (now Invensys Controls), securing a leading role for itself in switching valves market. In 2011, it purchased the valve business of the German company Aweco. The full takeover – with the exception of one business line in Mexico – came about two years after. All investments are aligned with specific values: product development, environmental protection, “glocality” (maintaining a global + local presence) and reliability.

Sanhua’s controls and components are used in residential, business and industrial HVAC equipment – from refrigerators to cars. Sanhua Aweco provides parts and supplies for household appliances, such as coffeemakers and washing machines, giving rise to many cooperations. Sanhua’s customer list is studded with most renowned brands in various areas of application – among them Carrier, Gree, Bosch, Siemens, Mitsubishi, Honda and GM.

Major developments over the last 30 years include the four-way switching valve, the electronic expansion valve and the micro-channel heat exchanger. The main function of the four-way switching valve, a compact, self-contained, high-capacity unit, is to switch between the heating and cooling modes of heat pump systems. Concerning the electronic expansion valve, electric cars can be equipped with high-performance air conditioning units. One extremely popular product is the micro-channel heat exchanger, thanks to which it is possible to develop high-efficiency, lightweight and compact systems requiring only very small amounts of refrigerant.

For the next 30 years, the company aims for more “glocality” in its representation and service. In the future, the company is planning to develop innovative and highly efficient products and to offer them across the globe. Looking forward, the company’s purpose is to maintain its position as one of the industry’s most important players. Product families will be standardised and improved. In Europe, Sanhua will be seeking more partners for sales and production. Sanhua Aweco is expected to provide a good basis for stability and growth in Germany.

From 14 to 16 October 2014, Sanhua will have its own trade fair stand (Hall 4A/4A-516) at Chillventa. Representatives look forward to familiarising customers and specialist partners with the company’s products.

Caption:

“It all began with a small manufacturing site”, says European Marketing Manager German Cifuentes of the company’s 30-year success story. “Today, Sanhua is amongst the 500 top industrial companies in China and counts as one of China’s 100 most valuable brands. The fact that two out of three air conditioning units worldwide use Sanhua switching valves today gives you an idea of our success”.

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