BusinessWeek: “Kevin Chang, general manager of Concord Ceramics, is a member of a younger generation of factory bosses in China trying to survive leaner times. That quest led him to examine the power use at his factories. He didn’t like what he found.
For decades after China started trading with the U.S. in 1979, most factory managers didn’t focus on electricity prices. Demand from abroad was expanding, labor was cheap, and the exchange rate favored China’s exporters. But conditions have changed since demand softened in the wake of the 2008 financial crisis. Chang says his labor costs have doubled, and the exchange rate is less favorable. Increasing energy efficiency is one way to shore up the bottom line.
The work at Concord requires constant air conditioning, and in the summer electricity has accounted for as much as 15 percent of operating costs. Chang, who was already leaving the hallway lights off, installed a high-volume air-conditioning system to cut expenses. Yet once the system was up and running, his electricity bill went up. Chang hired an engineer from the China Academy of Building Research, a government think tank, in Guangzhou. The engineer figured out the cooling system was more powerful than the factory needed, so the air conditioning constantly cycled between maximum cooling and powering down, wasting energy. The solution, conceived a few weeks ago, was to run just half of the unit. Now the air remains at a steady temperature, and Chang says he should save about 40 percent on electricity bills: “A lot of things can be made more efficient.”
via China’s Factory Owners Hunt for Energy Savings – Businessweek.
See also: https://chindia-alert.org/economic-factors/chinas-manufacturing/
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