The Cooling Shift: How Chinese AC Brands Swept the European Market This Summer
Europe has been sweltering. Record-shattering heatwaves across France, Germany, Denmark, and the Czech Republic have completely caught the continent off guard. Historically, residential air conditioning has been relatively rare in European homes due to milder climates and strict local building regulations. However, this summer’s extreme weather transformed cooling from a luxury into an absolute necessity—triggering an unprecedented run on air conditioning units.
With supply chains scrambling, Chinese major appliance brands like Midea, Haier, Gree, Hisense, and TCL stepped up to fill the void, effectively taking home the “MVP” title for Europe’s summer cooling season.
The Massive Surge in Demand
According to recent data, the scale of this cooling boom is staggering. Customs data reveals that exports of air conditioning units from China to the EU reached a record high of $3.76 billion in the first half of 2026 alone—a massive 43.2% year-on-year increase. Notably, Chinese brands now command a 41% share of the European AC market, up from 27% just three years ago.
The brand-specific numbers reflect a true inventory sell-out:
* Gree: Wall-mounted units completely sold out in France, pushing installation wait times all the way into late August.
* Midea: Its flagship PortaSplit (a portable split-system unit designed for easy setups) saw sales double compared to last year, shipping over 200,000 units and helping the brand anchor itself deeply in the competitive German market.
* Haier: European AC sales grew 30% year-on-year, with the company utilizing its global manufacturing bases at full capacity to keep up with restocking.
* Hisense: Sales doubled in France and grew by over 20% across Western Europe, with portable units becoming nearly impossible to find in Italy and Spain.
* TCL: Total European orders grew by 68% in the first half of the year, driven by a 90% surge in demand for portable and inverter split-system units.
Why Did These Brands Win the Summer?
The success of these brands wasn’t just luck; it came down to a mix of clever product design and sheer supply chain muscle.
* Solving the Installation Bottleneck: European building codes and historic architecture make drilling holes for traditional split-system AC installations incredibly difficult and legally complicated. Chinese manufacturers anticipated this by flooding the market with no-installation portable units and innovative “plug-and-play” portable split systems. These units solved the consumer’s immediate pain point without requiring a professional installer or landlord permission.
* Supply Chain Agility: Backed by mature, end-to-end component ecosystems domestically, these brands displayed unmatched manufacturing flexibility, allowing them to ramp up production and ship units faster than regional competitors.
* Established Local Footprints: Brands like Haier and Midea have spent years acquiring local European heating, ventilation, and air conditioning (HVAC) firms. This established network of local warehouses and distribution channels allowed them to react instantly when the French government unexpectedly placed an emergency order for 30,000 AC units to be delivered within days.
The Long-Term Outlook: Risks and Opportunities
Despite the record profits, the industry faces an looming question: What happens when the weather cools down?
Much of this summer’s volume consisted of portable, low-margin units. This is a highly competitive, commoditized segment of the market. If European temperatures dip next summer, manufacturers could face a severe overcapacity problem. Furthermore, Europe’s aging electrical grids, surging energy prices, and tightening environmental regulations mean future products will have to meet incredibly strict efficiency standards.
However, the broader consensus is clear: Europe’s relationship with air conditioning has permanently shifted. The International Energy Agency (IEA) projects that the number of AC units in the EU will more than double from 110 million in 2019 to 275 million by 2050.
For brands like Midea, Haier, and Hisense, this summer wasn’t just a short-term cash injection. It was a massive footprint expansion. The true test moving forward will be whether they can convert this sudden surge in market share into long-term brand loyalty and successfully transition European consumers toward their premium, high-efficiency smart home systems.
Category Archives: Manufacturing
Haier Europe Showcases Manufacturing Excellence at Eskişehir Industrial Hub
Haier Europe Showcases Manufacturing Excellence at Eskişehir Industrial HubHaier Europe has welcomed distributor partners to its industrial hub in Eskişehir, Turkey, offering an immersive look inside the advanced manufacturing operations that underpin the company’s growth across the region.Partners toured Haier’s dishwasher, dryer, and cooking factories, gaining firsthand insight into the technologies, quality systems, and production capabilities that support the brand’s expanding product portfolio. The visit highlighted Haier’s engineering depth, its disciplined approach to manufacturing, and the operational scale driving reliability and performance across categories.Operating under Haier’s global manufacturing standards — with continuous improvement embedded throughout — the Eskişehir hub plays a central role in delivering long‑term value for customers, consumers, and partners. The experience reinforced Haier Europe’s commitment to innovation, industrial excellence, and sustained market leadership.WhiteGoodsNow.com will continue tracking Haier’s manufacturing developments as the company strengthens its position across the European appliance sector
Whirlpool factory to close
Whirlpool announced a restructuring plan to close its Supsa manufacturing facility in Apodaca, Mexico by the second quarter of 2027, shifting production to its Ramos Arizpe plant and other sites in its network
C.A.E.M Marks Sixty Years of Innovation in Component Engineering
C.A.E.M is celebrating sixty years in the appliance components sector — a milestone that highlights its long-standing commitment to precision engineering, product reliability and forward‑looking innovation. Founded in 1966, the company has grown from a small specialist manufacturer into a trusted global supplier for major appliance brands.
Over six decades, C.A.E.M has expanded its portfolio across motors, switches, sensors and customised electromechanical solutions, supporting the evolution of modern white goods from early mechanical designs to today’s connected, energy‑efficient appliances. The anniversary also marks a renewed focus on R&D investment, sustainability and next‑generation component platforms designed for future manufacturing needs.
As the industry continues to shift toward smarter, quieter and more efficient appliances, C.A.E.M’s sixty‑year legacy positions it as a stable, innovation‑driven partner for OEMs worldwide.
Strix Group
Strix Group has appointed Andy Rainforth as CEO from 13 July 2026. With over 30 years’ international leadership across manufacturing, hardware, and SaaS, his arrival signals a fresh phase of technology‑driven growth for the global SDA component specialist
BSH Opens New 73,000 m² Small Appliance Factory in Rzeszów
BSH has officially opened its new small appliance factory in Rzeszów, marking a major expansion of its manufacturing footprint in Poland. The 73,000 m² site brings together a production hall, logistics centre and office space, creating a consolidated hub designed to support the company’s long‑term growth in the small appliance category.The move sees BSH transfer its existing Polish small appliance operations into the larger, modern facility, where the company will scale production of Bosch Unlimited cordless vacuum cleaners, bagless and laundry models, and capsule coffee machines. The Rzeszów site will also host the launch of a new platform of pressure coffee machines, strengthening BSH’s position in the fast‑growing premium coffee segment.The opening ceremony brought together local authorities, media, senior leaders from BSH Poland and the Small Appliances division, employees from the Rzeszów site, and representatives from Panattoni Poland, the developer behind the investment.BSH thanked the project teams across #TeamBSH for delivering the factory on schedule and ensuring a smooth transition into the new facility — a milestone that reinforces the company’s commitment to manufacturing in Poland
Beko Highlights Real Sustainability Gains for World Environment Day
Beko is marking World Environment Day by showcasing how its latest technologies are cutting water and energy use across both homes and factories. The brand says its PowerIntense dishwashing now delivers full cleaning performance using just 5.9 litres per cycle, while EnergySpin washing machines reduce energy consumption by up to 35%.
On the manufacturing side, Beko reports major efficiency wins: its Manisa washing machine plant has reduced water use per product by around 79%, and its Singer site has cut plastic waste by over 90%. The company is also targeting a 42% reduction in Scope 1 and 2 emissions by 2030.
CEO Can Dinçer describes the approach as “practical sustainability” — pairing efficient appliances with cleaner, lower‑impact production. With several factories recognised by the World Economic Forum’s Global Lighthouse Network, Beko continues to position itself as a sector leader in sustainable manufacturing.
Whirlpool Layoffs in Iowa Deepen as Demand Slumps to 2008 Levels
Whirlpool Layoffs in Iowa Deepen as Demand Slumps to 2008 LevelsWhirlpool’s manufacturing footprint in the US is under renewed scrutiny after the company confirmed another 288 layoffs at its Middle Amana, Iowa refrigerator plant — pushing total job losses at the site to 879 since mid‑2025.The latest cuts, filed under Iowa’s WARN system and effective 5 July, extend a turbulent period for one of the region’s largest employers. The Amana facility, which once supported around 3,000 workers and produces refrigerators for the Whirlpool, Amana, Maytag and KitchenAid brands, has long been a pillar of the local economy.Local Pressure Mounts as Reductions AccelerateThe scale of the job losses has triggered concern among Iowa officials and labour representatives.
US Representative Mariannette Miller‑Meeks recently warned CEO Marc Bitzer that continued reductions could weaken a manufacturing base built over generations.Whirlpool maintains that the cuts reflect historic demand weakness, not a retreat from US production. Bitzer highlighted more than $150 million invested in the Amana site in recent years and reiterated that 80% of Whirlpool appliances sold in the US are made in US plants — a larger domestic footprint than many competitors.Union Disputes Company’s ExplanationThe International Association of Machinists and Aerospace Workers continues to challenge Whirlpool’s rationale, arguing that the company is shifting production to Mexico.Union leaders point to Whirlpool’s recent investments in Ramos Arizpe and Celaya, and claim that Mexico has become the sole production base for the company’s French Door refrigerator line. Whirlpool rejects this, insisting the Amana layoffs stem from a multi‑year modernisation programme, not offshoring.The company says Amana will continue producing bottom‑mount and French door refrigerators, with further investment planned to upgrade product capability.Industry Backdrop: Demand Hits Crisis‑Era LowsThe dispute comes as the North American appliance market faces its toughest conditions since the 2008 financial crisis.
During Whirlpool’s May earnings call, Bitzer said demand for major appliances — particularly big‑ticket categories like refrigerators and dishwashers — has fallen to its weakest point in nearly two decades.Investors have felt the strain. Whirlpool’s share price, which peaked at $110.59 in July 2025, was trading near $40 at the end of last week.With neither Whirlpool nor the union offering further comment, uncertainty remains over whether the Amana plant has reached the bottom — or whether more restructuring lies ahead.
Welbilt UK Uses Pricing Strategy to Offset Tariff Pressures
Welbilt UK (Merrychef’s owner)has successfully protected its profit margins through strategic pricing actions and operational efficiencies as uncertainty around US tariffs continues to affect global manufacturers.
The commercial kitchen equipment manufacturer reported strong financial results, supported by robust export sales, manufacturing improvements and targeted price adjustments. With international markets accounting for a significant share of revenue, the company has been closely monitoring potential tariff impacts and implementing measures to mitigate additional costs.
Welbilt said a combination of pricing initiatives, productivity gains and supply chain management helped maintain profitability despite ongoing geopolitical and trade challenges.
The results highlight how manufacturers are increasingly relying on pricing discipline and operational excellence to navigate an uncertain global trading environment.
Homa Accelerates AI‑Driven OEM Manufacturing
Homa is pushing ahead with a major digital transformation, integrating AI, robotics and full‑process digitalisation across its operations. The company’s No. 9 factory — focused on premium no‑frost refrigeration — now acts as a model for intelligent OEM production, combining automation, AI vision, AGVs and digital‑twin systems to boost efficiency, quality and manufacturing stability.
CEO Michael Yao says industrial intelligence is now central to Homa’s global competitiveness, while Homa Europe GM Federico Rebaudo highlights the growing need for OEM partners who can deliver cost‑effective, high‑quality, digitally enabled production at scale.
Homa’s continued investment in smart manufacturing strengthens its position as a leading global OEM for next‑generation refrigeration.
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