Qingdao Hisense Hitachi Air-Conditioning Systems breaks ground on third factory

New factory will greatly expand production capacity of Johnson Controls-Hitachi Air Conditioning's joint venture with Hisense

TOKYO,Sept. 27,2018 -- Johnson Controls-Hitachi Air Conditioning (Headquartered: Minato Ward,Tokyo; Chief Executive Officer: Franz Cerwinka),a leading global supplier of air conditioning solutions,today announced that Qingdao Hisense Hitachi Air-Conditioning Systems,its joint venture with Hisense,has broken ground on its third factory in the Chinese city of Qingdao.

The new factory,which is scheduled to commence operations in November 2019,will include state-of-the-art production lines for Hitachi,York and Hisense-brand commercial air conditioning systems for use in buildings in the China market and around the world. It will have a potential capacity of 2 million units per year.

The new factory will cover 150,000 square meters of land within the same complex as the company's existing two plants. It will feature advanced automation,including automatic guided vehicle (AGV) auto-feeding of raw materials,auto-stacking of indoor and outdoor units and rail-guided vehicle auto-storage.

The new building will also house a research and development center complete with "customer experience" lab capable of recreating diverse temperature,humidity,sunshine,rain,snow and wind conditions for product testing.

Construction of the new factory is now underway. After commencing operations in November 2019,it is scheduled to be fully operational by Jan. 1,2020.

The increased production made possible by the new factory will enable Qingdao Hisense Hitachi Air-Conditioning Systems to deliver significantly increased output to serve Johnson Controls-Hitachi Air Conditioning's rapidly expanding markets around the world.

Franz Cerwinka,Chief Executive Officer of Johnson Controls-Hitachi Air Conditioning,commented: "Qingdao Hisense Hitachi Air-Conditioning Systems is a crucial part of Johnson Controls-Hitachi Air Conditioning's global strategy for growth. With the establishment of this new factory,we and our partners Hisense are demonstrating our deep commitment to the company and our strong belief in its potential to continue to excel."

About Johnson Controls-Hitachi Air Conditioning

Johnson Controls-Hitachi Air Conditioning is a global air conditioning manufacturer,established in October 2015 as a joint venture of Johnson Controls International plc. and Hitachi Appliances,Inc. Our 16,000 employees create quality products,services and solutions for residential and commercial buildings throughout the world. We exceed customer expectations with the most diverse range of HVAC products in the world- from ductless solutions to chillers to HVAC room air conditioning systems,fueled by our industry-leading technology and innovation. For more information,visit www.jci-hitachi.com.