Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Hot Korean Summer Extends Production of Air Conditioners
Aug 13, 2004
 Printable format
 Email this Article
 Search

The hottest summer in 10 years couldn't come at a better time for South Korean makers of air-conditioners. With private consumption slumping, the heat wave and rising demand for heat-beating devices have come as a manna to them, analysts said.

Stockpiles of air-conditioners have already bottomed out, plants are running at 24-hr full capacity, and they've decided to extend production into this month, a rarity for the industry.

LG Electronics Inc., said to be the world's largest maker of air-conditioners by sales, said it will continue production until the end of this month, due to a backlog of orders. Usually, the company halts production for domestic consumption in June, but continued orders after July made it shift to a 24-hr, three-shift work system this month, company officials said.

The heat spell sent the mercury soaring to 35 degrees Celsius or higher in some parts of the country, with nighttime temperatures remaining higher than 25 degrees Celsius.

Given the present situation, the management and labor union at LG Electronics agreed to postpone summer holidays scheduled for Aug. 1-5 and instead continue production, for the first time in 10 years.

Sales of air-conditioners soared 60-70 percent year-on-year in July, and accumulative sales have jumped more than 30 percent this year, LG Electronics said.

Samsung Electronics Co., considered the country's biggest home appliance maker, also decided to extend production into August, as orders did not relent in July, the usual peak time for demand, according to company officials.

"Since 1994, we have increased production capacity drastically. But this year, we have to produce air conditioners even in August," a Samsung official said. Its sales shot up about 70 percent in July.

Daewoo Electronics Co. said that sales of air-conditioners will rise about 70 percent year-on-year in August, given that sales surged more than 100 percent month-to-month in July.

In addition, the number of air-conditioners imported into the country climbed 21 percent year-on-year in July to U.S. $9.54 million, according to government data, as domestic production is unable to meet demand caused by this summer's sweltering weather.

Power consumption topped a record 50-million-kilowatt peak twice last month as a scorching heat wave forced people to use air-conditioners and other devices to cool off. On July 29, demand for electricity spiked to 51.26 million kilowatts at one point in the day.

Government officials predict this summer's record for electricity consumption will be set around the middle of August, saying power consumption should fall between late July and early August, when most South Koreans take summer holidays. (Yonhap)

Back to Daily News

 

Daily News

...........................................................

Sep 25, 2014: Cub Cadet's new lawn tractor has Bluetooth and its own app

Sep 24, 2014: GE has the highest ranked appliance brand website; h.h. gregg ranked top appliance retailer website

Sep 24, 2014: Haier becomes first refrigerator maker to offer a lifetime compressor warranty

Sep 24, 2014: New condensing dishwasher from Whirlpool's plant in Wroclaw, Poland

Sep 24, 2014: Index points to growth in consumer spending on tech products in remaining months of 2014

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows