Whirlpool (600983) announced on the evening of the 22nd that it plans to terminate the implementation of the "annual production of 4 million energy-saving and environmentally-friendly high-end refrigerator expansion projects", the project has invested a total of 366 million yuan, and still need to pay upfront costs of 61.67 million yuan. The balance raised 182 million yuan, which will be used for “the second phase of the annual production of 5 million washing machines intelligent and frequency conversion technology”. It is expected to be put into production in 2019 and generate revenue. Whirlpool said that the existing refrigerator production capacity has met the market demand. In 2018, the company's refrigerator products mainly promote Jupiter high-end series products (external sales), and the termination of the project will not affect the overall performance.

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At present, the washing machine industry is gradually popularized with the concept of energy conservation and environmental protection, and the market share of frequency conversion products with better energy saving effects is increasing year by year. With the upgrading of consumer demand, intelligence has become a key consideration for consumers to purchase washing machines. It is precisely seeing the increasing frequency and intelligent penetration rate of the washing machine, and Whirlpool will add more strength to these two “knifes”.

In the announcement, Whirlpool (600983) analyzed that in recent years, due to the development trend of the demand market, the demand for inverter drum washing machines has further increased, and the production capacity of the original inverter drum washing machine has not been able to meet the market development needs. The company plans to implement the project. At the same time, the company will enhance the competitiveness of enterprises, further adjust the product structure, and increase the production capacity of variable-frequency drum washing machines. At the same time, the current washing machine production line is stamped, injection-molded and assembled with robots. Renovate, optimize storage, logistics and other facilities, and build a smart factory for washing machines.

As the world's largest manufacturer of large household appliances, the share of Whirlpool washing machines in the Chinese market continues to be compressed with the rise of brands such as Haier and Little Swan. Zhongyikang data shows that in the domestic market, Whirlpool washing machine's cumulative market share in 2017 was 1.90% share, lower than the same period last year.

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Obviously, Whirlpool's washing machine business in the Chinese market is "not warm", which is not consistent with the "identity" of the world's old home appliance manufacturing and sales companies. Whirlpool may want to use this intelligent, frequency-changing transformation to enhance the competitiveness of its washing machine in the Chinese market, and then divide the high-end washing machine market triggered by consumption upgrades and industrial upgrading. (Yin Limei)

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