SWEP BPHEs Generate Strong Business in Asia
JARN (J): First of all, could you briefly introduce SWEP’s heat exchanger business?
SWEP (S): SWEP is a world-leading supplier of brazed plate heat exchangers (BPHEs) for heating, ventilation, and air conditioning (HVAC) and industrial applications. Designed to make the most efficient use of energy, materials, and space, the technology is quickly gaining ground around the world, with SWEP at the forefront of developments.
SWEP is known for providing market-leading technology within our core markets. This is the result of more than 30 years of close collaboration with customers around the world. They have played an essential part in driving our development and efficiency, and in building up the application expertise that has allowed us to achieve leadership.
J: Could you please tell us the result for SWEP’s Position in Asia including China, India, Japan, and South Korea in 2017?
S: SWEP is in the leading position in these markets and some recent surveys verify such a leading position in China. In 2017, SWEP had growth in line with or above the market and industries it serves, such as in the HVAC sector’s air conditioning and heat pump markets in China. Both Japan and South Korea were showing double -digit growth in 2017 and especially in South Korea the results were outstanding among our major global accounts.
SWEP representatives at its booth during HVAC&R JAPAN 2018
J: How do you see market growth in Asia in 2018?
S: Asia is expecting moderately slower growth than in 2017 from the softening demand in China driven by Coalto-Electricity and air conditioning products. However, India is expected to grow faster after 2017, a year negatively impacted by demonetization and new Goods and Services Tax. Japan and South Korea are expected to grow at the same or at a faster pace than in 2017 thanks to the continuing positive general development in their economies. Above all, our export-driven accounts will lead the growth path.
J: SWEP has operations around the world. What percentage of your business does Asia account for?
S: Over a quarter of our total business is located in Asia, in which the biggest markets are in China followed by Japan, South Korea, and India.
J: What shares of your business in Asia do refrigeration and air conditioning account for?
S: Over 50% of SWEP’s Asia business is dedicated to these two segments.
J: BPHEs are a key part of your business. Northern European manufacturers are very strong in the heat exchanger industry. Are there any special reasons?
S: It is difficult to mention any particular reason. However, it could be fair to note that Nordic countries are focused on energy efficiency since they have strong demand for heating residences in long winters combined with increased costs of energy. This forms the basis of developing ever more efficient systems, of which heat exchangers are an integral part of.