Gree energizes R&D efforts

Gree Electric Appliances Inc, a major home appliances maker based in Zhuhai, Guangdong province, has established two academician working stations to facilitate its core technology research and development.

Led by Rao Fangquan and Jiang Yi, two academicians of the Chinese Academy of Engineering, the stations will focus on researching core technologies in electrical machinery and building energy conservation, respectively, according to the company.

"Gree's future development relies on core technologies. Establishing the stations will help us to enhance our capabilities in technology R&D, which is driven by consumer demand," said Dong Mingzhu, president of Gree Electric Appliances Inc.

Air conditioners have long been a major backbone for Gree, which specializes in household and central air conditioners, as well as air source water heaters, smartphones, refrigerators and other home appliances.

"But our business will move beyond the air conditioning industry, with varieties of smart products to be unveiled in the market," said Dong.

Gree topped the global household air conditioning market with an international market share of 21.9 percent in 2017, according to Nikkei's 2017 market share survey for major global goods and services.

"Establishing the two stations will help us to develop more products and diversify our business," said Dong.

Rao, also a professor of Shanghai Jiao Tong University, said Gree should lead the industry not only in the air conditioning segment but also in emerging sectors.

"Gree's future development should rely more on cutting-edge technologies in the artificial intelligence and robotics sectors, which will be a trend in the global manufacturing industry," said Rao.

Jiang, a professor of Tsinghua University, said air conditioners will have greater market opportunities in the near future.

"We are not only cooling the air in cities during the warmer summers, but also heating the air in places with low temperatures in winter," said Jiang.

By replacing traditional heating sources, heating functionality in air conditioners will help to reduce energy consumption, according to Jiang.

Gree targets sales volume of 200 billion yuan ($29.4 billion) in 2018. Last year, its sales grew by 36.92 percent year-on-year to 148.29 billion yuan.