Move Towards a One-Stop Solution for High-Efficiency, Low-Emission Gas Heating Industry
WUHAN, China, June 12, 2024 /PRNewswire/ — Recently, Cubic Sensor and Instrument Co.,Ltd. (hereinafter referred to as “Cubic”) announced its strategic investment in Zhongshan LOPE Thermal Technology Ltd. (hereinafter referred to as “LOPE”), and Guangzhou Jingding Electric Technology Co., Ltd. (hereinafter referred to as “Jingding Electric”) at the signing ceremony at Cubic R&D center. Cubic will acquire a 57.14% equity stake in LOPE and a 51% stake in Jingding Electric through a combination of capital transfer and capital increase. This strategic move marks a significant expansion in Cubic’s portfolio and deepened cooperation within the industry.
Mr. Qi Wang, director of the Utilization Committee and Gas Heating Committee of China Gas Society of China Civil Engineering Society, states,
“Currently, in the wall-mounted gas boiler industry, the trend of leveraging sensor technology for intelligent upgrades and applying full premixed condensing technology to improve thermal efficiency and reduce pollutant emissions is becoming increasingly evident. Cubic will fully utilize its advantages in gas sensor technology to rapidly expand its business landscape in the full premixed condensing wall-mounted gas boiler industry. It is worth looking forward to its collaboration with LOPE and Jingding Electric, which will contribute significantly to the development of the industry.”
According to the data released at the annual Chinese gas heating industry conference, it reveals that China’s market inventory for wall-mounted gas boilers exceeds 34 million units. Notably, over 10 million of these units are more than eight years old, and around 5 million are aged between 10 and 15 years, highlighting a substantial potential market for replacements. Currently, the majority of these boilers are direct gas-fired types, which are notably inefficient in terms of combustion and produce high emissions. Meanwhile, condensing wall-mounted gas boilers, which are more efficient and environmentally friendly, make up only about 2.3 million units, or 7% of the total inventory. This situation underscores a critical need for China to shift towards developing smart premixed condensing wall-mounted gas boilers.
Leveraging its gas sensor technology platform and the technical and industrial accumulation of its core management team in the field of combustion science and technology, Cubic has established a strong R&D team in 2022 and initiated the development of low-carbon gas combustion technologies, aiming to build an industrial ecosystem for residential, commercial, and industrial gas fired boilers with sensors, actuators, and controllers as the core supply chain. Currently, Cubic has made breakthroughs in the R&D of gas sensors for new types of full premixed condensing wall-mounted gas boilers, as well as in brushless direct current (BLDC) fans and intelligent gas combustion controllers, earning recognition from experts within the industry. Simultaneously, experimental facilities have been established for key components, including gas proportional valves, gas burners, and heat exchangers for full premixed condensing wall-mounted gas boilers, and Cubic has initiated business negotiations for cooperation with Chinese core component supply enterprises.
Through the strategic investment, Cubic aims to integrate resources related to stainless steel heat exchangers, burners, gas proportional valves, variable frequency BLDC fans, gas sensors, intelligent gas combustion controllers, and other components involved in full premixed condensing wall-mounted gas boilers, establishing a “sensor-actuator-controller” one-stop supply chain solution in this field.
Dr. Youhui Xiong, Chairman of Cubic, has high expectations for this strategic investment in LOPE and Jingding Electric. He thinks that LOPE has become one of the few enterprises globally capable of mass-production of stainless-steel condensing heat exchangers after seven years of innovation, leveraging international scientific and technological resources. Jingding Electric, with nearly two decades of experience in the gas proportional valve field, is an important standard drafting or participating member in the China gas appliance industry. Cubic possesses significant technological and industrial advantages in gas sensors, gas metering, and intelligent gas controllers. By leveraging the significant industrial opportunities and the expansive, cohesive domestic market fostered by the ‘low-carbon’ goals, their tripartite collaboration and deep cooperation are set to powerfully…
Read More: Cubic Invests in LOPE and Jingding Electric to Create a Comprehensive Supply