Development and production of Domestic Hot Water solutions
Two manufacturing facilities in Foshan and Hefei, China, with about 1,000 associates
Product distribution under Vanward and Bosch brands to be carried out in global markets from beginning 2017.
Peking/Wetzlar – Guandong Vanward New Electric Co., Ltd. (Vanward), headquartered in Foshan/China, and Bosch’s Thermotechnology division, headquartered in Wetzlar/Germany, have agreed to establish a joint venture that will develop and manufacture hot water products. The joint venture will be owned in equal shares by Vanward and Bosch. The transaction is subject to regulatory approvals. The financial terms of the agreement will not be publicly disclosed.
Vanward, a leading manufacturer of hot water heaters in China and a leading supplier of kitchen and bathroom appliances, and Bosch Thermotechnology, a leading European manufacturer of energy-efficient heating and hot water solutions, will contribute their comprehensive technology in the DHW segment. Bosch will transfer manufacturing lines for electric hot water storage tanks, heat pump water heaters as well as solar thermal collectors from different Bosch sites in China to two existing Vanward facilities in Foshan and Hefei, where they will be used for the joint venture.
At the end of 2016, about 1,000 former Vanward associates will start manufacturing a comprehensive DHW portfolio focusing on electric hot water storage tanks. Product distribution is scheduled to start beginning of 2017 under the Vanward and Bosch brands.
“Bosch Thermotechnology is a leading supplier of energy-efficient heating products and hot water solutions in Europe, while Vanward owns a strong position in China in terms of research and development and professional manufacturing of water heaters and heating systems. The joint venture is a win-win cooperation, and I truly believe it will drive further development of hot water products in China and global markets,” said Ye Yuanzhang, President of Guandong Vanward New Electric Co., Ltd.
“China is the world’s biggest market for water heaters, and this segment will be a cornerstone in our hot water business going forward. The joint venture of the two experienced and renowned partners Vanward and Bosch allows optimal use of R&D and manufacturing resources and creates the conditions for further growth,” said Uwe Glock, President of the Board of Management of the Thermotechnology Division.
Vanward, is the largest manufacturer of hot water heaters in China and a leading supplier of kitchen and bathroom appliance. Vanward owns seven manufacturing bases in China which accounts for an area of over one million square meters with the annual production capacity of 15 million pieces. The company has 28 industry-leading core technologies and gained more than 1,000 patens. Vanward holds the largest market share for continuous 12 years in gas water heater, and is one of the two brands in China ranking for “Global Top Ten Brands for Hot Water Heater”. Vanward has a strong network for sales with over 14,000 outlets and distributors in China, supporting customers in 57 countries and areas on six continents.
Bosch Thermotechnology is a leading European manufacturer of energy-efficient heating products and hot water solutions. In fiscal 2015, the company generated sales of about 3.3 billion euros (68 percent outside Germany) and employed approx. 13 400 people. Bosch Thermotechnology has strong international and regional brands and manufactures a diversified product range in Europe, America and Asia.
Sales revenues increase to EUR 3.3 billion in 2015
Growing market share in many European core markets for residential buildings
More than 150,000 products sold make Bosch Thermotechnology the leader in the smart heating market
Position as system supplier for commercial and industrial systems strengthened by joint venture with Midea
Wetzlar – Bosch Thermotechnology grew strongly in the financial year 2015. Sales revenues were up by roughly 7 percent (roughly 4.5 percent in exchange rate adjusted terms) on the previous year to EUR 3.3 billion. “Our business showed an excellent trend in 2015. We were able to win market share in Western and Southern Europe, especially in our core markets Germany, the Netherlands, the UK, Spain and Austria,” said Uwe Glock, Chairman of the Bosch Thermotechnology Division. The growth is primarily attributable to the good trend for wall-hung boilers, water heaters and floor-standing boilers. “We launched an entirely new generation of devices in 2015. They are web-enabled, intuitive and easy to operate by touchscreen and up to 30 percent quicker to install. These devices strengthen our position as the world market leader in heating systems for residential buildings and set new standards for our line of industry,” Glock said.
Leading supplier of smart heating solutions More than 150,000 networkable products sold make Bosch Thermotechnology the leading supplier of smart heating solutions for greatly increased comfort, energy efficiency, operational safety and service quality. The new “HomeCom” portal, for instance, provides installers with detailed information on their customers’ networked systems including disruptions and their potential causes. The end customer receives well-arranged information on his heating system, consumption data and individualized energy saving tips. On its way towards continued growth, Bosch Thermotechnology relies on three business segments: heating systems for residential buildings, domestic water heaters and commercial and industrial heating and air-conditioning systems. “We are making good progress in all three segments and want to outgrow the market. We will continue to pursue this course in 2016,” Glock said.
New, future-oriented generation of devices to be expanded Bosch Thermotechnology’s new generation of devices is characterised by future-oriented design and technology. Their innovative, modular structure and the well thought-out layout of the components give installers excellent access to the individual components inside the heat generator. This makes maintenance of the devices much easier and quicker. And the black or white glass fronts make for a striking design. In 2015, Bosch Thermotechnology launched different products of the new generation under the Junkers Bosch and Buderus brands in Germany, Austria, Luxembourg, Italy, Spain, Belgium, Turkey, the Baltic states and Russia, among others. Other European countries will follow in 2016. The first wall-hung Bosch branded boiler of the new generation is already available in China, too. The first heat pumps, storage tanks and stoves of the new generation will be presented at the SHK fair in Essen starting March 9, 2016. In addition, the company will launch gas heat pumps for single and two-family homes as well as energy centers with fuel cell technology in 2016.
Large-scale business: Progress on the way towards a systems supplier Bosch Thermotechnology is making good progress in the field of commercial and industrial HVAC (Heating, Ventilation, Air-Conditioning) applications. The company made a great step forward on its way towards becoming an international systems supplier: In March 2015, Bosch Thermotechnology and Midea CAC, China, agreed to establish a joint venture for VRF (Variable Refrigerant Flow) systems for the heating and air-conditioning of commercial buildings. Production in Hefei, China, is scheduled to start in late March 2016. “The joint venture will expand the technology portfolio of Bosch Thermotechnology for large-scale systems. This will open up promising growth opportunities for us in the international HVAC market,” Glock said.
Domestic hot water market: Expansion of the international presence A new production facility in Mexico will expand Bosch Thermotechnology’s international presence in keeping with the regionalization strategy. In August 2015, a plant for instantaneous gas water heaters for the Mexican and Latin American market was opened in Tepotzotlan, some 50 kilometers north of Mexico City. “Mexico is gaining importance as a place for business. The new production facility thus represents an important step for our growth strategy in the North American market and to expand our leading position in the international domestic hot water market as a whole,” Glock said. “Thanks to our local production facility, we are closer to our customers and know their regional requirements better. This allows us to adapt our products even more effectively to the market. A regional base therefore forms the foundation for continued growth.”