OREANDA-NEWS. April 01, 2015. Bosch Thermotechnology, Germany, and Midea Commercial Air-Conditioner Division (Midea CAC), China, plan to establish a joint venture that will manufacture variable refrigerant flow (VRF) systems in China for the global HVAC (heating, ventilation, air-conditioning) market. VRF appliances use a refrigerant to cool and heat commercial buildings. The joint venture is to be headquartered at an already existing Midea production site in Hefei, Anhui province, and will employ some 100 associates in its first year. Production is scheduled to start in January 2016. The transaction will be subject to regulatory approvals. The financial terms of the agreement will not be publicly disclosed.

The joint venture will integrate Midea CAC’s technologies and Bosch Thermotechnology`s system expertise to manufacture diverse VRF systems. Research and development is a common task in the joint venture. The activities will focus on adapting the products to the differing demands of various regional markets. The VRF systems will be primarily offered under the Bosch brand by Bosch Thermotechnology worldwide.

Eric Tian, general manager of Midea CAC, has great expectations for the future joint venture: “With excellent VRF systems from this joint venture, Midea CAC will further expand its HVAC business and share of the global market.”

Uwe Glock, president of the Bosch Thermotechnology division, is equally optimistic: “With this joint venture, Bosch Thermotechnology will further expand its technology portfolio. Moreover, Bosch’s market position as a systems provider for the commercial HVAC business field will be strengthened. And finally, we believe the joint venture will offer Bosch promising growth prospects in the global HVAC market.”