Page 14 - Climate Control Magazine September 2018
P. 14

World News
Trade tensions lead to HVACR price increases
ONGOING TRADE TENSIONS BETWEEN THE UNITED STATES AND CHINA HAVE BEEN LABELLED “DISRUPTIVE” AND DETRIMENTAL TO THE GLOBAL HVACR INDUSTRY.
PLANS BY THE United States Government to introduce another 10 per cent import tariff on 6,000 Chinese items, including HVACR prod- ucts, during the month of September has raised concerns by members of the Air Conditioning, Heating and Refrigeration Institute (AHRI). The organisation’s vice president of public af- fairs, Francis J. Dietz, said the ongoing trade war is creating price increases.
“Our position remains the same – the tit-for- tat tariff situation is disruptive to the business cycles of our members, to the global supply chain, and also to negotiations on treaties like NAFTA,” Dietz told Ammonia21. “Many of these tariffs have forced our members to raise prices to cover the increased cost of raw materi- als, which is unfortunate.” Dietz said the longer the situation continues the worse it will be for industry. The 6,000 products which are worth more than $200 billion, covers Chinese exports of air conditioners, heat pumps, refrigerators, components, HCFCs and two types of ammo- nia. AHRI members are monitoring the situa- tion closely by analysing the list and engaging on a weekly basis.
The 6,000 products were announced only days after a previous round of tariffs by the US and China on each other’s products.
China’s state-run newspaper has accused the Trump administration of behaving like a gang of hoodlums.
US President, Donald Trump
Trade tensions first emerged in February when the US Government announced import duties on steel and aluminium, a move that was immediately opposed by AHRI.
“As major users of steel and aluminium, we have been proactive in explaining to the admin- istration that the HVACR and water heating in- dustry would be negatively impacted by an in- crease in tariffs, as would the consumers that rely on the products we manufacture,” AHRI President and CEO Stephen Yurek said in a state- ment in February.
US President, Donald Trump, said the tariffs aim to protect US jobs and are not just directed at China. Trump has also placed tariffs on goods from the European Union (EU) and Canada. Chi- na responded with a statement published in its state-run newspaper, the China Daily, which said: “The Trump administration is behaving likeagangofhoodlums.” ✺
- with Ammonia21
ebm-papst builds new plant in China
EBM-PAPST IS INVESTING $AU47.2 million in the construction of a new plant in China to provide products to the Asian region.
The 27,000 square metre plant is part of the company's internationalization strategy "Structure 2020" which includes strengthening its presence in Asia.
Chair of the managing board of the ebm-papst group, Stefan Brandl, said de- mand for the company's products is growing in the region driving the need to increase production.
in Shanghai and its new facility will be based in Xi'an, the Chinese capital of the Shaanxi province. Construction will be completed mid-2019.
President and CEO of ebm-papst in China, Thomas Nürnberger, said there are plans for the facility to also supply countries such as Indonesia, the Philip- pines and Thailand.
ebm-papst has been represented in China since 1996 and currently employs around 1,800 staff at the Chinese sites. ✺
He said ebm-papst already has a plant
ebm-papst production facilities.
CLIMATECONTROLNEWS.COM.AU
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