Kyungdong Navien Challenges Global Heating and Cooling Market at Seotan Factory
Annual Production Expanded from 2 Million to 4.3 Million Units
Transforming into a Global Production Hub by Completing a Smart Factory
Kyungdong Navien is intensifying its efforts to penetrate the global heating, ventilation, and air conditioning (HVAC) market. Starting with North America this year, the company will introduce new products that comprehensively manage heating, hot water, indoor air quality control, and cooling. To this end, it will also expand its global production base at the Seotan plant and advance its systems.
Kyungdong Navien announced on the 27th that it plans to expand production capacity and extend the Seotan plant to meet the increasing global demand and align with upcoming new business projects starting this year. It will also transition to a smart factory in response to the Fourth Industrial Revolution. The Seotan plant is a boiler and water heater production facility spanning 40,000 pyeong. When it began operations in 2014, its annual production capacity was 1.2 million units. With the expansion of the global market, production lines have been continuously increased, and the current annual capacity has reached 2 million units. This is 1.5 times the size of South Korea’s annual boiler market of 1.3 million units.
Kyungdong Navien plans to expand the production scale of the Seotan plant to approximately 4.3 million units annually by 2026. This includes not only its existing main products, boilers and water heaters, but also new products such as the 'Condensing Hydro Furnace,' targeting the main heating market in North America. Production lines for new cooling-related products will also be established, expanding the facility to 100,000 pyeong. Through digital transformation of the entire production process?including manufacturing, inspection, and logistics?the company will introduce integrated production management tailored to customer demand and enhance quality control capabilities.
By expanding its production base, Kyungdong Navien is embarking on full-scale preparations for the future. Starting with North America, it plans to enter the HVAC market and, based on this success, launch home environment appliances tailored to domestic conditions. HVAC is a concept encompassing heating, cooling, ventilation, and indoor air quality management closely related to living environments. The global HVAC market size reaches 320 trillion KRW. Kyungdong Navien aims to lead change in this market with eco-friendly and high-efficiency products. First, it will launch the 'Condensing Hydro Furnace' in the North American market this year. This system supplies warmed air indoors through heat exchange between water and air. Its advantages include comfortable air quality and stable heating. The integration of condensing technology enhances energy efficiency and significantly reduces nitrogen oxide emissions, strengthening its eco-friendly features.
Kyungdong Navien will also enter the North American cooling market. Unlike South Korea, North America does not use separate split-type air conditioners but implements cooling and heating through air conditioning systems. Kyungdong Navien plans to release a new 'heat pump' equipped with the latest inverter compressor within the year, providing both heating and cooling in conjunction with the Condensing Hydro Furnace. It will also continuously introduce new products domestically that comprehensively manage indoor air quality. The 'Condensing Air Conditioner Hybrid,' which offers more efficient cooling through condensing technology, achieves the desired temperature by removing humidity from outside air and using evaporative cooling, where the evaporation of water lowers the surrounding air temperature. It can reduce electricity bills by about 38% compared to conventional air conditioners and simultaneously provides air purification and ventilation.
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Kim Yong-beom, Chief Sales and Marketing Officer at Kyungdong Navien, said, "Kyungdong Navien has led the global energy market with Asia’s first developed condensing boiler and eco-friendly condensing water heaters that pioneered trends in the North American market. Based on our successful experience in North America, we will create a new wave in the global HVAC market with differentiated technology and secure future growth engines."
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