Bosch's business is heating up

The operations in China of a new joint venture - involving heat technology and hot water products - will help expand the market presence of Robert Bosch GmbH on the mainland, a senior executive of the German group says.

Bosch Thermotechnology, the European manufacturer of energy-efficient heating and hot water solutions, launched production at its joint venture with Guangdong Vanward New Electric Co, a leading manufacturer of gas appliances in China, in Foshan on May 16.

Bosch says the Foshan plant will produce about 4 million water heaters annually.

"Our Chinese partner has strong hot water heating technologies for the Chinese market," says Uwe Glock, global board chairman of Bosch Thermotechnology.

"The partnership will help boost Bosch's market presence and also bring about new growth opportunities for the Chinese home appliance industry," Glock adds.

According to Glock, 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 of Anhui province.

"China is the world's biggest market for water heaters, and this segment will be a cornerstone in Bosch's hot water business going forward," he says.

"The joint venture allows optimal use of both sides' research and development and manufacturing resources, creating the conditions for further growth."

Bosch posted double-digit growth in the Chinese market last year, which meant China remained its second-largest market worldwide, according to company sources.

The German company also invested around 5.4 billion yuan ($782 million; 703.25 million euros; ￡605.30 million) in China in 2016, including the establishment of a research and development facility in Suzhou and another one in Nanjing, Jiangsu province.

qiuquanlin@chinadaily.com.cn

(China Daily European Weekly 05/19/2017 page28)