Combined Heat and Power in China Booming Amid Lower GDP Growth – Margin Squeeze Hurting Smaller Producers

Beijing, China, December 30, 2011 --(PR.com)-- GCiS China Strategic Research has published a report on the China market for combine heat and power (CHP) equipment. The study finds that China’s demand for affordable energy, coupled with targets from the government’s 12th five year plan, which contains specific needs for cogeneration, will sustain double digit growth despite an expected softening in other areas of the economy.

The report focuses mainly on the market for the six main types of equipment found to serve cogeneration in China, these comprise of power station boilers, steam turbines, gas turbines, generators, heat recovery steam generators and reciprocating engines.

The bulk of CHP purchases are made by utility power plants. These state-owned entities operate under a fixed electricity price but floating coal prices. For them, increasing efficiencies through CHP will attenuate mounting financial losses.

Also reported in the study, the role that rising raw material prices are playing in the changing structure of the market’s supply side. According to GCiS analyst Jessie Jiang, “CHP parts pricing is increasing the pressure on low-end domestic producers, who traditionally operate under wafer thin margins. Current trends point to some form of consolidation in 2012 and beyond.”

###

About the GCIS China CHP Equipment Study
This GCiS market study draws on a three month, in-depth primary survey of 80 of the market’s supply side and channel players, also including interviews with industry experts. It is essential reading for any professional needing accurate and detailed strategic information of this market. Major areas covered include: market size and shares, five-year projections, market structure, pricing trends, distribution, consumption, an assessment of key suppliers and more.

About GCiS China Strategic Research
GCiS (www.GCiS.com.cn) is a China-based market research and advisory firm focused on business to business markets. Since 1997, GCiS has been working with leading multinationals such as Siemens and GE in sectors ranging from technology to industrial markets, medical, chemicals, resources, and a few others.