Interview with Ma Hanhan, President of Sapa Heat Transfer Division

Heat exchangers are important components for automobile manufacture. Since its establishment in 1996, Shanghai Sapa Heat Transfer Co., Ltd. has always been committed to becoming an excellent supplier of heat exchanger solutions. With its high-performance products and flexible and economical solutions, it has gradually become a leader in the domestic aluminum heat exchanger industry. . A few days ago, regarding the company's development status and its recent business plan, Ma Yuehan, the president of Sapa’s aluminum heat transmission division, received an exclusive interview.

Reporter: As the only company in the world that specializes in the production of heat exchanger aluminum, how does Sapa Heat Transfer (Shanghai) Co., Ltd. sell from January to August this year? At present, what is our market share in the aluminum heat exchanger market in China?

Ma Yuehan: Due to the continuation of the strong growth momentum in the Asian market and the economic recovery in the North American market, Sapa aluminum heat transfer has maintained a good growth trend in Asia and North America since January and August this year.

At present, the proportion of Asian operations in our global business is approximately 21%, and that in North America is approximately 10%. In China's aluminum heat exchanger market, Sapa’s market share is about 25%. Given the strong market demand in the Chinese market, we expect future business in China will continue to maintain a considerable increase. It is estimated that this year's annual sales will reach 2.5 billion, of which 50% of sales will come from China. In the next six years, Sapa is expected to maintain an average annual growth rate of 7%, while the rate of increase in the Chinese market may be slightly higher, is expected to reach 10%, Europe and North America were 2%, 5%.

Reporter: Sapa heat transfer products are widely used in the automotive industry. What are the main products launched by the company for the automotive industry, and what are the products that are important contributions to profit?

Ma Yuehan: Over the years, Sapa has always been committed to providing all kinds of parts and components for heat exchanger suppliers. At present, we mainly have three main types of products, namely rolled aluminum, welded pipe and extruded pipe, among which rolled aluminum has the highest proportion of business and is also our main profit contribution product. The company has nearly 80% of its products. The sales are from rolled aluminum.

Reporter: It is understood that some of the company's products are exported to East Asia and Southeast Asia. How much does the export ratio account for the proportion of the company's total business? Are there any differences in product sales targeting for different markets? Are there differences between products exported to different regions?

Ma Yuehan: The export business accounts for roughly 50% of the heat transmission in Sapa. Among them, 30% of the products are mainly exported to countries in the Asian region, and some are exported to the North American market. As for the sales of exported products, there is no difference between the products actually produced and sold in China, and the export to these countries is also a manifestation of Sapa's business arrangements around the world. We hope to provide quality products for customers in different regions. products and services.

Reporter: What do you think of the current status of the domestic aluminum heat exchanger market? What are the advantages of Sapa heat transfer in this market compared to its competitors?

Ma Yuehan: With the increase in car ownership, the demand for cars from Chinese consumers has also been increasing. At present, many Chinese families still own only one car, which still has enormous growth potential compared to Western countries in Europe and America. It gave us an opportunity for development. In addition, Sapa's products are not only used in the automotive field, but also in the home appliance and new energy fields. Therefore, the market demand for our products is still very large.

Compared with its competitors, Sapa's greatest advantage lies in the fact that we can provide technical support to our customers and help them to increase production efficiency and reduce costs. At present, we have settled in Shanghai as the second global technology center. This is a global R&D center for the Asia-Pacific region. In addition, our advantages are reflected in many other aspects. First of all, the current market for aluminum heat exchangers places stringent requirements on the lightweighting and corrosion resistance of materials. In recent years, Sapa has continuously strived to reduce the weight and corrosion resistance of its products through the constant efforts of its R&D personnel. , has been unanimously approved by customers. Second, we have a global presence and can quickly respond to the needs of customers around the world and provide support for customers around the world. Third, we have strong flexibility, short product development cycles, and successful coverage of low-end, mid-end and high-end markets to meet the needs of different consumers.

It is precisely because of these advantages that we are able to maintain a good and stable cooperation relationship with Delphi, Denso, Valeo, Visteon, Bellow and other globally renowned component suppliers over the years.

Reporter: You just mentioned that Sapa has set up a new technology center in Shanghai. How does this technology center differ from the previous Sapa Heat Transfer China R&D Center in the development of R&D? What are the ongoing projects?

Ma Yuehan: Sapa has two major technology centers in the world, one in Sweden and one in Shanghai. The core of our technical support is mainly in Sweden, but some technical support has begun to transfer to Shanghai. Prior to this, Sapa had established a China R&D center in Shanghai in 2006. The center mainly targets our customer base and provides technical support for the different needs of customers. The new technology center is mainly engaged in mid- and long-term research and development work, more technical research based on the expectations of market development trends, not specific to the needs of customers. What needs to be emphasized is that the newly established technology center is shared with previous R&D centers on certain R&D achievements, and experts from both centers will also regularly discuss new technical issues.

At present, our new technology center is considering the development of heat exchangers for hybrid vehicles and electric vehicles. The new energy automotive business means to us that we will enter a new research and development field, and now we are also working with customers. Committed to the development of new materials suitable for such vehicles, in the hope to meet the needs of customers in the new energy automotive business in the future. In addition, we are also focusing on the development of traditional heat exchange materials, focusing on the development of long-life, high-strength, corrosion-resistant materials.

Reporter: The introduction of the New Energy Vehicle Development Plan has indeed put new demands on auto parts suppliers. In addition to the material development for new energy vehicles that you mentioned just now, did Saab Needle carry out other related work in this field?

Ma Yuehan: New energy technology is a brand-new field for both OEMs and parts suppliers. There are many issues that need to be explored at the technical level. At present, Sapa is also actively researching new energy technologies. In addition to what I just mentioned, Sapa is developing new materials for heat exchangers for new energy vehicles. We also cooperate with some well-known battery suppliers. , jointly develop some products, such as battery cooling system development. In addition, we also cooperate fully with some colleges and universities and well-known institutions, such as the Swedish Institute for Corrosion and Metal Research, Shanghai Jiaotong University, the University of Maryland, and the Norwegian University of Science and Technology, in order to obtain more technical support in cooperation with them. .

Reporter: Sapa has been striving to become the preferred overall solution supplier of brazed heat exchanger aluminum. Therefore, it is particularly important to establish a high degree of recognition in the customer group. What efforts has the company made?

Ma Yuehan: “Customer First” is the concept we have been admiring for many years, and we have also adopted a series of measures to increase customer acceptance. First, we demand that we be able to quickly respond to the needs of our customers and provide them with high quality products. And in the process of cooperation, we constantly introduce new products to provide customers with continuously optimized products. Secondly, Sapa has always stressed that we are not a supplier of raw materials but a solution provider. In the process of cooperation with customers, when our customers encounter problems with our products, our R&D centers and technical centers will go deep into In the course of the work of the customer, helping him to find the problem and propose the best solution, it is precisely such a sincere and responsible attitude that we have won a higher reputation among customers. In addition, Sapa has also taken the initiative to help our customers expand their new business and build a healthy partnership with their customers, which has established a good reputation in the industry.

Reporter: Does the current slowdown in the growth of the auto market affect Sapa's business? What are the company's countermeasures?

Ma Yuehan: The slowdown in the growth of the auto market has a relatively limited impact on Sapa's business. Even if it is a policy that restricts the auto market, such as restrictions on purchase, it also presents opportunities for development. Because after the introduction of the purchase restriction, consumers are often willing to buy high-quality cars, and many of our products are also mainly oriented to the market. In the high-end market, we still have a large room for business growth. In addition, we not only provide complementary products for Tier 1 suppliers, but also our products for the aftermarket. If there is a reduction in supporting services in the future, we can still actively explore the aftermarket, maintain a balance between the two businesses, and ensure the company's business. The stable development.

Reporter: Sapa Heat Transfer (Shanghai) Co., Ltd. carried out phase II and phase III expansions in 2006 and 2010, respectively. The current production capacity reaches 100,000 tons/year. Is there any plan for further expansion in the next few years?

Ma Yuehan: In the short term, we have no plans to further expand production, because our current production capacity is expected to meet the market demand in the next 4-5 years. Due to the investment in new cold rolling mill equipment, our production capacity is expected to be Up to 120,000 tons. However, Sapa is a flexible enterprise. If market demand grows faster in the future, we do not rule out further expansion plans.