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www.midea.com Midea Advances Newsletter, November, 2012
1
VOL 2, #8, November 2012, No. 23
China’s Olympic Swimming Champions Arrive At Midea Headquarters To
Celebrate And Reaffirm Their Partnership With China’s Industrial Giant
Everything Going Swimmingly
www.midea.com Midea Advances Newsletter, November, 2012
2
Midea
Advances Newsletter
Contents
NEWSLINE Grand Opening of the Carrier
Midea India Manufacturing
Facility PAGE 13-15
FEATURE
Midea/ACW Dealer Confer-
ence in Egypt PAGE 10
ASEAN Country Meeting by
TID PAGE 4
GMCC Co-sponsored China
Household Electrical Appli-
ances Technology Confer-
ence PAGE 6
Midea Advances Newsletter is published monthly
by the International Strategy Department of
Midea Group. We welcome all comments, sug-
gestions and contribution of articles, as well as
subscribing our newsletter. You can reach us at:
Midea Group
Add.: Midea HQ Building, No.6 Midea Ave, Bei-
jiao, Shunde, Foshan, Guangdong P.R.C. 528311
Tel: +86-757-2360 4714
Fax: 86-757-2660 5455
Web: www.midea.com
Publisher: International Strategy Dept.
Managing Editor:
Matthew Smith
Mandy Wang
Correspondents:
Min Chen
Shine Li
Amber Liu
Crystal Lun
Tony Miao
Sue Ou
Sandra Sun
James Yu
Peck Zhao
Daniel Zhang
PEOPLE
TECH SPOTLIGHT
The 17th Annual Midea Sci-
ence & Technology Awards
Ceremony PAGE 3
Midea Carrier JV Wins Itaú
Unibanco Contract in Brazil PAGE 4
Chinese Swimming Associa-
tion Surfaces at Midea HQ PAGE 11-12
The Miraco JV Dealers’ In-
centive Trip to China PAGE 9
Nónio Visits Midea PAGE 6
Midea Floor-Standing KF Se-
ries Wins Best Originality De-
sign Award PAGE 16
On To Greener Pastures PAGE 17-19
MIDEA IN THE COMMUNITY
Midea CAC Wins Contract for
27th South East Asian Games
Stadiums PAGE 5
Midea Dealers from Greece
Visit Midea Headquarters PAGE 5
Midea Full-DC Inverter Wins
Chinese Science Technolo-
gy Progress Award PAGE 7
Electric Heaters See Increase
in Sales in the United States PAGE 10
Midea Carrier Brazil Praised
for FAT in the 6th SHARE HR
conference in Manaus PAGE 20
www.midea.com Midea Advances Newsletter, November, 2012
3
NEWSLINE
The 17th Annual Midea Science & Technology
Awards Ceremony
By Crystal Lun
T his year’s Midea Science & Technology Awards Cere-
mony was held in Shunde on October 26th. Midea Group Chair-
man Paul Hongbo Fang, managerial staff, and top sales execu-
tives, totaling over 1100 participants, attended the conference.
This event now grants over 20 million RMB each year to
the company’s most innovative projects, spread across 17 differ-
ent awards. The ceremony has been running now for 17 years,
since 1996, and has awarded over 100 million RMB during this
time. Research and development is an important part of Midea’s
foundation, and thus for the past five years, Midea group has
invested over 10 billion RMB into research, and Midea maintains
a policy whereby 3% of annual turnover is invested in R&D.
www.midea.com Midea Advances Newsletter, November, 2012
4
NEWSLINE
ASEAN Country Meeting by TID
Coobie Zhang, General Manager of TID, gives a speech to subsidiary executives.
By Sandra Sun
S ince shifting its strategy from pursuing scale devel-
opment, Midea has begun focusing on profit growth, its de-
velopment strategy and company structure have all adapted
to facilitate this transformation. In order to carry out this
policy, TID recently held an ASEAN Conference and invited
high level company executives from China, Indonesia, Malay-
sia, Vietnam and other ASEAN countries. The conference
was organized to review marketing and product policies be-
tween each market, to discuss development strategy for each
product line and the potential synergies between marketing
resources, and to analyze Midea brand positioning and devel-
opment direction in following three years.
During the meeting, managers from each product line
presented pricing strategies in contrast to their local market
competitors, in addition to speaking about channel con-
struction in these markets. The conference also included
discussion about finances and resource consolidation, with
the aim of avoiding financial risk in an international business
environment.
On the last day of the meeting, attendees visited the
rice cooker factory, water heater showroom and air-
conditioner warehouse to gain better familiarity with HQ’s
production management.
Executives on a factory visit to gain better familiarity with head-quarters' production management.
Midea Carrier JV Wins Itaú Unibanco
Contract in Brazil
M idea-Carrier in Brazil recently won the contract
to provide air conditioning for Itaú Unibanco’s datacenter in
the Mogi Mirim prefecture outside of Sao Paulo.
By James Yu
The datacenter was already using 18 chillers, totaling
6,915 tons of refrigerant (TR) installed, and will replace
those with 16 Midea chillers to reach 19,000 TR after in-
stallation is completed around April 2013.
www.midea.com Midea Advances Newsletter, November, 2012
5
NEWSLINE
Midea CAC Wins Contract for 27th South East
Asian Games Stadiums By Amber Liu
A fter serious competition, the bidding for the
27th South East Asian (SEA) Games Stadium refrigeration
projects was finalized, and the winner announced: Midea
CAC will provide the
40,000m2 stadium with heat
recovery water-cooled screw
chillers, with a HVAC pro-
ject value of around
USD $1.5 million. Winning
this project has demonstrated
Midea CAC’s strong and
increasing influence in the HVAC industry in Myanmar.
The SEA Games is one of the most popular sports
competitions in the entire Southeast-Asian region, and are
held every two years, starting from 1959. Myanmar has
already hosted the SEA Games twice before, in 1961 and
1969. In 2013, the Games will return, across the three cities
Yangon, Mandalay and Nay Pyi Taw.
The application of Midea heat
recovery water-cooled screw
chillers creates a comfortable
environment for athletes and
audiences, and supplies ade-
quate hot water for athletes to
take showers as well. This
product can utilize at least 30%
condensing heat capacity to produce hot water, which is an
energy saving solution for any structure needing air condi-
tioning and hot water simultaneously.
By Min Chen
F rom 7th to 8th November, a group of 50 guests from Greece, mostly Midea
brand dealers and a journalist from Athens Daily, visited Midea Headquarters, by invita-
tion from Midea RAC overseas sales. This event was aimed at supporting marketing activi-
ties in the Greece market, and enhancing dealers’ trust and confidence in the Midea brand.
To boost sales, Midea RAC overseas marketing has worked in close cooperation with
dealers in Greece, who have developed a high level of brand recognition for Midea, and
gained great experience in promoting Midea products. During the peak season of this
year, Greece dealers carried out various promotional activities through outdoor, TV, Ra-
dio, and Internet advertising which resulted in a significant increase of purchase volume
within months - an especially remarkable feat considering the state of the economy in
Greece right now.
While they were here, the group managed to visit Midea’s modern-styled product
gallery, the X-Pro Centre, as well as Midea’s Historical Museum, the iconic Midea R&D
Centre, and followed by tours around various factories. The night was topped with a wel-
come dinner party, and the presentation of a “Strategic Partner” award to the group.
After only two days here, the group, including many first-time Midea dealers
from Greece, showed and even remarked on their greatly-heightened confidence in the Midea brand and their desire to build
even closer cooperation with Midea to capture the Greece market.
An award being presented at the ceremony for Excellence in
Dealership
Midea Dealers from Greece Visit Midea
Headquarters
www.midea.com Midea Advances Newsletter, November, 2012
6
NEWSLINE
GMCC at the China Household Electrical
Appliances Technology Conference
By Crystal Lun
Remark: The China Household Electrical Appliances As-
sociation (CHEAA) was established in December 1988.
CHEAA is registered by the Chinese manufacturer of
household appliances industry, business, spare parts and
raw materials, auxiliary enterprises, research institutions
and other voluntary agencies. CHEAA is a self-composed,
not-for-profit social and economic non-government or-
ganization. You can read more by its website: http://
en.cheaa.org/
O n the last day of October, the China Household
Electrical Appliances Technology Conference was held in
the city of Nanjing, in Jiangsu province. This conference
was hosted by China Household Electrical Appliances As-
sociation (CHEAA), and co-sponsored by GMCC, and is
the most authoritative technical exchange event of its kind
in the home appliance industry.
The Chinese government is determined to decrease
greenhouse emissions by 40-50% in 2020, over 2005 levels.
GMCC has dedicated itself in this environmental endeavor
by developing high-tech compressor with different features.
In the area of environmentally-friendly refrigerant de-
velopment, GMCC has grown to become a pioneer,
launching efficient compressors, starting with the R407
compressor in 2000, then three years later introducing the
upgraded R410a in 2003. It started R&D for CO2 and
R290 environmental compressors in 2007, and in 2012 the
first R32 compressor was launched.
In regards to inverter technology, GMCC launched
the R10a full-DC inverter compressor in 2003, making it
one of the first companies to release such a compressor in
the market, and as of July 2012, its production volume has
surpassed 30 million units.
GMCC compressors also improved in efficiency by
10% compared to units from 10 years ago. With the annual
sales volume of GMCC, over 2.5 million tons of carbon
dioxide emissions are eliminated per year.
Jiang Feng, Chairman of CHEAA, and Fu Yongjun, Vice-president of GMCC, each gave speeches.
O n November 6th, a delegation from the Nónio Group visited
Midea. Nónio, beginning in the Portuguese market in 1967, promotes, dis-
tributes and provides assistance to a diverse range of leading brands of
Nónio Visits Midea By Sue Ou
www.midea.com Midea Advances Newsletter, November, 2012
7
NEWSLINE
Nónio Visits Midea (cont.)
By Sue Ou
Welcome speech by John Wei, Marketing Director of Midea CAC
T his year’s China Household Electrical Appliances Technology Conference was
held in Jiangsu, Nanjing on October 31st, hosted by the China Household Electrical Ap-
pliances Association. The theme of the conference was “Energy Efficiency, Environmen-
tal Friendliness, Creativity, and Development”. During the conference, Midea’s full-DC
inverter won the Chinese Science Technology Progress Award, by merit of its new heat
exchanger technology.
The new Heat Exchanger is a technological keystone developed and applied by
Midea, which enhances air conditioner energy efficiency. The application of micro chan-
nel heat exchangers was impossible because of technical barriers in the past; but now,
Midea’s micro channel heat exchangers are made completely out of aluminum and per-
form brilliantly in enhancing energy efficiency, reducing copper and refrigerant require-
ments. Without a doubt, this is the reason why Midea won the Chinese Science Technolo-
gy Progress Award.
So far, Midea has established a completely self-developed and patented inverter tech-
nology chain including the inverter control chip, DC inverter compressor, inverter control
algorithm, DC brushless motor, manufacturing technique, and quality management of
inverter air conditioners.
Midea’s Chinese Science Tech-nology Progress Award
Midea Full-DC Inverter Wins Chinese
Science Technology Progress Award
By Crystal Lun
HVAC equipment and systems.
To start their visit to Midea, they first attended a
presentation introducing Midea CAC its products portfolio.
Nónio then presented CAC product details and domestic
market information which provide direct feedback to Midea
on the products and overall response from the domestic
market.
After the presentations, Nónio accompanied CAC’s
Marketing Manager, Peck Zhao, for tours of the factory and
laboratory. Zhao fully explained the manufacturing process
to them, demonstrating the basis of Midea’s high product
quality.
www.midea.com Midea Advances Newsletter, November, 2012
8
NEWSLINE
Midea RAC Supplier Conference 2012
Groups of Asia-Pacific Customer Visited
Midea CAC
By Crystal Lun
A conference for core RAC suppliers was held by
Midea’s Residential Air Conditioning Division on the 25th of Octo-
ber, attracting nearly 400 representatives from 291 core suppliers.
The event was a great opportunity for many from both Midea RAC
and suppliers to finally meet and put faces to names, and strengthen
working relationships. During the conference, Midea RAC President
Wu Wenxin, and Vice-Presidents Li Guolin and Ma Jun gave speech-
es on division perspective, supply chain development strategy, and
quality management. Wu expressed confidence that Midea and its
suppliers would sustain and grow their cooperative, efficient and val-
ue-added supply chain with mutual effort. Wu Wenxin, President of Midea RAC
By Amber Liu
R ecently, many distributors from the Asia-Pacific
region have invited their customers and consultants to visit
Midea CAC in person to see what new technological
achievements have been made and the new products CAC
will bring to the market.
Through visits to the product showroom, factory, and
R&D center,
local reference
projects, and
key product
presentations,
customers can
gain a deep un-
derstanding
about the
strengths of
Midea Group
and CAC, build-
ing their confidence in the Midea brand. It’s likely not a coin-
cidence that orders typically increase after such customer
visits to Midea.
In 2011, total sales revenue of Midea CAC was
USD$12.5 billion, with 20% coming from overseas markets,
thanks to our distributors throughout the world. The truth is,
visiting Midea
CAC is one of
the most efficient
methods to pro-
mote the Midea
brand and build a
feeling of com-
fort with custom-
ers. Therefore,
Midea CAC wel-
comes each and
every guest to
visit at any time. IACS From Australia (left), and Sitem from Thailand (right)
www.midea.com Midea Advances Newsletter, November, 2012
9
NEWSLINE
The Miraco JV Dealers’ Incentive
Trip to China By Daniel Zhang
T his year, Miraco JV announced its annual Dealers’
Incentive Trip to China, an opportunity for residential air-
conditioning dealers and local working staff to experience
China firsthand. A specific purpose of this trip is also to
change the prejudice towards the “Made in China” stamp, as
it is often equated with low quality products. In addition,
this trip also aims to strengthen dealer and staff knowledge
about Midea Group and build their confidence in Midea’s
development of household appliances products for the
Egypt market.
The entire visit lasted from November 2nd to No-
vember 10th, and was carefully planned and organized by a
local tourist agency. A total of 96 visitors from Egypt visited
four cities in China including Beijing, Guangzhou, Shunde,
and Hong Kong, all cities which contain rich, regional cul-
tures and economic features.
In Shunde, where Midea HQ is located, visitors took a
tour of the Midea product showroom, as well as the Shunde
factories and the microwave oven exhibition room. Every-
one was astonished at the high quality of Midea’s household
product portfolio and world-class production line. After the
showroom, the visitors also took a walk through Midea’s
expansive historical museum (only matched by the product
showroom’s equally massive scale), to learn more about the
company’s rich past: over the previous 40 years, Midea has
grown from a
small workshop to
a multinational
company, which
proves the out-
standing abilities
of the company
management dur-
ing those years. In
light of what eve-
ryone had seen of
Midea’s past and
present during
their time in Chi-
na, the guests
from Egypt felt
more confident
than ever, that
with Midea’s
strength and knowledge, they could compete against anyone
in Egypt’s white household appliances market.
To cap off their visit with what will likely be a lasting
memory for them, the dealers from Egypt joined together in
a football match with the staff from Miraco and TID, paving
the way for their future business together.
The Egyptian guests with their Midea hosts, after some fun.
www.midea.com Midea Advances Newsletter, November, 2012
10
NEWSLINE
Midea-ACW Dealer Conference in Egypt
By Tony Miao
O n November 18th, Midea CAC and Air Condi-
tioner World (ACW), a Midea distributor in Ukraine, orga-
nized a dealer conference in Sharm El Sheihk in Egypt. In
total, 25 dealers from the ACW side attended the conference,
core dealers from all around Ukraine who are engaging in the
Midea commercial air conditioning business. In addition, an
ACW group involved in Midea residential air conditioning, 40
dealers in total, visited Midea Headquarters on the same day.
Air Conditioner World (ACW) is one of the biggest air
conditioner distributors in Ukraine, with wide channels in the
business range of air conditioner and ventilation products.
ACW and Midea have had long history of cooperation since
2000, as the first Ukrainian company to have collaborated
with Midea for all kinds of air conditioner products.
At the beginning of the conference, Kid Yany, a sales
manager from Midea CAC, gave a warm welcome speech to
all attendees. Tony Miao, a marketing manager also from
Midea CAC, helped to explain the technical information and
Midea’s market support policy. Afterwards, Segey Kirieive
from ACW gave a presentation about the Midea CAC prod-
uct lineup. All attendees were very pleased with Midea’s
product quality and the support service from Midea and
ACW. The products discussed included Midea’s DC inverter
VRF, the air cooled modular chiller, and the 4th generation
network control manager, also known as the Intelligent Man-
ager of Midea (IMM).
Electric Heater Sales See An Increase
in the United States By Min Chen
2 012 has seen a general slowdown in small domestic
appliance (SDA) sales, but one SDA category that has been
the exception this year is electric heaters. To date, Midea’s
export of heaters to the US market totaled USD$324 mil-
lion, an impressive year-on-year growth of 21.3%.
Electric heaters have traditionally been one of the
most important exporting product categories. Exports to the
European Union countries have been in decline since the
onset of the so-called “Euro Crisis”, but this increase in the
US market is a comforting sign.
Analysis from industry specialists have indicated that the in-
creased sales of electric heaters in the US market were, on
one hand, due to the notable improvement of the product
quality, and also thanks to upgraded product features which
made these products more attractive to customers. This in-
crease may only be temporary, as it has been pointed out that
international trade barriers would likely increase in the near
future. This has already has been seen in the rise of trade
protectionism in the US, which endangers the current in-
crease in electric heater exports to the region.
www.midea.com Midea Advances Newsletter, November, 2012
11
FEATURE
Chinese Swimming Association Surfaces at
Midea HQ (cont.) By Mandy Wang
E arly in the morning on No-
vember 5th, a small group of Midea
staff traveled to the airport to receive a
group of visitors, and shuttle them to
the Midea headquarters for a rare kind
of visit. It was an occasion that most
everyone in Midea knew of in advance,
and the collective anticipation around
the building made the atmosphere pos-
itively electric.
To the absolute delight of every-
one here, a group of 19 from the Chi-
nese Swimming Association (CSA),
including Olympic stars Hua Li, Sun
Yang, Wu Minxia, Ye Shiwen, and
Chen Ruolin, arrived at Midea’s head-
quarters that day, primarily to partici-
pate in a special and significant signing
ceremony. Paul Hongbo Fang, Chairman of Midea Group,
met with the team and had a friendly talk with Hua Li about
future cooperation between Midea and the CSA. This was
Chairman Fang, having an enjoyable discussion with the head of the CSA.
Dozens of Midea employees are seen here, visibly excited about
their chance to see the swimming champions up close during the
signing ceremony. The CSA team members, visiting Midea’s Product Showroom.
www.midea.com Midea Advances Newsletter, November, 2012
12
followed by a tour of the product showroom, for the team to
learn more about Midea’s latest products.
Midea and the CSA have been partners since 2007, and
over the past six years, they have been enjoying smooth and
easy cooperation together. There is no doubt that Midea and
the CSA will continue this partnership for a long time to
come, as well as its sponsorship with Fédération Internatio-
nale de Natation (FINA), the administering body for interna-
tional swimming competition.
In the coming month, the 11th FINA World Swimming
Championship will be held in Istanbul, Turkey, and as one of
the sponsors for this FINA event, Midea’s logo will be
prominent throughout the arena, and on display
for the world to see.
To read previous news about cooperation between
Midea and FINA, you can check out the AD-
VANCES July-August 2011 issue on the Global
Midea website, at http://global.midea.com.
FEATURE
Chinese Swimming Association Surfaces at
Midea HQ (cont.) By Mandy Wang
The CSA team, posing with Chairman Fang and the executive management team of Midea.
www.midea.com Midea Advances Newsletter, November, 2012
13
Grand Opening of the Carrier Midea India
Manufacturing Facility By Shine Li
T he Carrier Midea India (CMI) manufacturing
facility was officially opened by Mr. Xiangjian He, Founder
of Midea, and Mr.
Geraud Darnis,
President of UTC
CCS, on 31 Octo-
ber, 2012. The
new manufactur-
ing facility is situ-
ated at Bawal,
Haryana, about
60km from CMI’s
headquarter in
Gurgaon. Span-
ning approximate-
ly 150,000 sq. ft.,
the plant is one of
India’s largest
manufacturing
facilities for air
conditioners, with
an initial annual
flat volume production capacity of 700,000, which will
soon be expanded to 1,000,000 units. With an investment
of 5 billion Rupees over a five to six year period, CMI will
further strengthen its position in the residential air condi-
tioning and white
goods market in
India.
The ribbon-
cutting ceremony
was followed by
the unveiling of a
plaque by He
and Darnis, to
commemorate
the occasion.
Also present
from Midea were
Paul Hongbo
Fang, Chairman
of Midea Group,
Andy Gu, Vice
President of
Midea Group,
and Coobie
Zhang, General Manager of Midea’s International Division
(TID). The Carrier side was represented by Mr. Ross B.
Xiangjian He, Founder of Midea Group, and Geraud Darnis, President and CEO of UTC CCS, cutting the ceremonial ribbon together.
He and Darnis, together after the ribbon cutting ceremony. Darnis and Fang, taking time to share some thoughts.
FEATURE
www.midea.com Midea Advances Newsletter, November, 2012
14
Grand Opening of the Carrier Midea India
Manufacturing Facility (cont.) By Shine Li
Shuster, Mr. Mark George, Mr. Rick Sanfrey,
Ms. Elke Kulas, Ms Catherine Yang, Mr.
Zubin Irani, and Mr. Gaurang Pandya. The
Executive Committee from CMI was also
present, headed by Krishan Sachdev, Man-
aging Director of CMI. The guests took a
tour of the factory and remarked on the sig-
nificant progress at the facility: the factory
was commissioned in a short span of only
eight months.
CMI will manufacture, distribute
and service Carrier brand residential air con-
ditioners, Midea brand residential & light
commercial air conditioners, as well as
Midea brand home appliances. Both brands
will be available through a strong nationwide
channel network.
The new facility is comprised of 2
CDU AC assembly lines with R22/R410a capability, a Win-
dow AC line, a Hi-wall IDU line and a Cassette IDU line.
The factory will also have 2 coil lines including a new high
capacity coil line. CMI will have adequate in-house capacity
for coil requirements.
This plant is a significant milestone for CMI. Since
beginning construction in February 2012, the plant has al-
ready become fully operational in a short timeframe of just
CMI and Midea executives waiting to answer questions at the press conference.
Krishan Sachdev, Managing Director of CMI, giving a presentation.
Local media posing questions during the press conference.
FEATURE
www.midea.com Midea Advances Newsletter, November, 2012
15
Grand Opening of the Carrier Midea India
Manufacturing Facility (cont.) By Shine Li
eight months. With state-of-the-art technology, it targets
increased localization of world-class technology for the
Indian consumer. The facility also aims to provide an em-
ployee-focused working environment for more than the
1,000 people that the factory will employ once it reaches
full capacity.
“The Carrier Midea facility marks a new beginning
that will help us expand our footprint in the country. With
two brands - Carrier and Midea – [CMI] will be a strong
player in the consumer durable market and also delight our
Coobie Zhang, General Manager of Midea TID, is giving a presentation.
Andy Gu, Vice President of Midea Group, is presenting at the press conference.
FEATURE
customers with best-in-class products and services. We are
very excited to introduce Midea in India,” remarked
Sachdev.
CMI values sustainable business operations. The
Carrier Midea factory is an environmentally responsible
facility; it uses 100% recycled water, rain water harvesting,
evaporative air-cooling in production areas, and maximum
use of natural lighting on the shop floor to save energy.
During the manufacturing processes, the focus will be on
improving efficiencies in energy, waste, water, and carbon
emissions. In addition to implementing energy-saving prac-
tices in the facility, efforts will also focus on minimizing
resource consumption throughout the entire supply chain,
including procurements and logistics.
www.midea.com Midea Advances Newsletter, November, 2012
16
Midea Floor-Standing KF Series Wins Best
Originality Design Award
TECH SPOTLIGHT
By Crystal Lun
R ecently, the State Intellectual Property Office of
China (SIPO) released the results of The 7th China Patent
Appearance Design Contest: Midea’s floor-standing KF se-
ries air conditioner, standing out from over six hundred oth-
er submissions, won the Best Originality Design, the only air
conditioner to win this award.
The KF series floor-standing AC is the first ever to
apply a dual “cross fan” design, linear air inlet and outlet
mode, which results in a very low operating noise level. The
KF series uses a V-LED concealed display and touch con-
trol, which creates an exceptionally modern and convenient
experience. The front face adopts a concealed design when
the unit is in standby, with the two front panels coming to-
gether to conceal all controls and outlets; when active, the
panels gracefully slide apart for access to controls and allow-
ing airflow.
(To read more about the State Intellectual Property Office of Chi-
na (SIPO), visit their website at: http://english.sipo.gov.cn)
3D Airflow technology
Intelligent front panels au-tomatically part for users
Precise temperature control by simple touching
High-efficiency design
www.midea.com Midea Advances Newsletter, November, 2012
17
PEOPLE
On To Greener Pastures
By Matthew Smith & Mandy Wang
B ack in the May 2011 issue of ADVANCES, our publication
sat down for an interview (“Enjoy Every Reward”) with a unique
Midea employee, Michael Roycraft. Up until just recently, Mike had
been the head language instructor for the company headquarters, which
perhaps made him one of the most well-known people in the company.
A year and a half later, we are having another interview with Mike,
as the circumstances of his employment in the company have changed
just recently…
ADVANCES: Thank for taking the time to sit down with
us again! So… we’ve heard a bit about the big change
through the grapevine here, but I think we need to get the
official story from you.
Mike: Haha, yeah, it’s hard to keep a secret around here,
isn’t it? Well, you heard right: as of last month, I am no
longer involved in language instruction at Midea; I am now
working in the TID (International Division) Sales depart-
ment for the North America market.
ADV: Wow - that’s quite different from your old role here.
How did this change come to pass?
Mike: Well, I enjoyed guiding people in their language stud-
ies, and the social aspect of my previous work here was re-
warding too, but I had pretty much exhausted the challenge
involved with that job and there’s just a tremendous amount of opportunity to grow and learn new things at Midea,
simply because of its size and scale. Working in sales is
already presenting plenty of new challenges for me, and yet
as a Canadian, I have familiarity with the North American
market, which provides me with an advantage in this role,
too.
ADV: Do you miss anything about your old job?
Mike: Well, I definitely didn’t have as much pressure in my
old job, and I also had more free time before, but being
busier is not necessarily a bad thing when you’re really en-
gaged in your work.
ADV: What’s the most challenging aspect of your new job?
www.midea.com Midea Advances Newsletter, November, 2012
18
PEOPLE
Mike: Ah… haha, that would have to be communicating
with our production people. I can usually get away with
speaking English with most people here in the headquarters,
but when I have to pick up the phone and start talking with
someone from our production facilities, it’s pretty much all
in Chinese. My ability in this respect has improved a lot over
the past few years, but this job constantly reminds me that I
still have a lot to learn, especially in this respect!
ADV: How about the most enjoyable part of working in
sales?
Mike: Oh, that would probably be hosting visits from our
customers in North America. I enjoy showing them a good
time around here, especially if it’s their first time to China,
and introducing the culture to them. They’re always amazed
by what they’re seeing here, and with our common cultural
background, it’s easier to explain everything to them.
ADV: What’s your feeling about Midea’s constant push to
become a more global company? Do you have any sugges-
tions?
Mike: Well, I’ve become pretty good friends with a guy here
in the Finance Dept. here, Alex, who’s on exchange from
our Brazil office for the year. My impression from my previ-
ous role, my short time in my new role, and from what I can
see with Alex in his department, I would say that Midea
might try to bring in more foreigners, even just on an ex-
change program from its overseas offices. For a company
with such a broad, global scope in business like Midea does,
I feel that the people in the headquarters don’t get enough
exposure to the world outside of China which we regularly
do business with. I think it makes a difference for our Chi-
nese colleagues to have that daily, face-to-face exposure with
foreigners, in terms of practicing language, and being more
aware of cultural differences.
ADV: That sounds like a really good point, and I’m sure
there are probably plenty of foreign employees in our over-
On To Greener Pastures (cont.)
By Matthew Smith & Mandy Wang
www.midea.com Midea Advances Newsletter, November, 2012
19
PEOPLE
seas offices who would likewise be interested in learning
more about the Chinese culture and language of the parent
company.
Mike: Yeah, that’s right; I think it would benefit Midea just as
much to help its foreign employees understand more about
the company culture and the style of business here, too. The
process for this company to become more global really will
involve a two-way flow of information and understanding.
ADV: Thanks so much for your time, once again… and
when you make your next professional move here, promise to
sit down and talk with us again – deal?
Mike: Haha, well… we’ll see…
As a bonus section to this issue’s interview, we talked to a few employees
who used to study under Mike, and asked them for their thoughts about
Mike’s move to Sales…
Samantha Liu: Mike is nice and fun. His stories always make
me laugh to tears. We had a really good time studying with
Mike. Hope he will enjoy the new position and have a great
future!
Andy Zhu: Mike was my teacher and is still my good friend.
He is always passionate about his work. He could always get
everyone involved so that we had good interaction. In his
class, he encouraged us to express our opinions freely, which
improved our oral English greatly. In addition, Mike was
always well-prepared to help us. Even though Mike will not
be our instructor anymore, I feel glad for him for switching
to sales. He is contributing to Midea’s overseas business. I
believe he will carry his passion in this new job. Wish him
the best!
Zhiqiang Xia: Mike is very nice. He always looks happy and
passionate about his work and his life. As an instructor, he
had his unique way of educating and becoming friends with
us! If I would have a few words to describe him, I would
say: passionate, goal-oriented and optimistic!
On To Greener Pastures (cont.)
Samantha Liu, Department of Information Technology
Andy Zhu, Department of Strategy & Planning
Zhiqiang Xia, Department of Administration & Human Resources
By Matthew Smith & Mandy Wang
www.midea.com Midea Advances Newsletter, November, 2012
20
M idea Carrier Brazil was invited by ABRH-AM, a
human resources organization, to present a success story in a
special field: “Fund for Workers” (otherwise known as
“FAT”) is an unemployment insurance scheme which has
been developed for retaining and developing human re-
sources more effectively. This fund was the feature topic dur-
ing the 6th SHARE HR conference, an event oriented to-
wards human resources professionals in Manaus, Brazil. The
case was presented by the
HR Manager of Manaus
plant of Midea Carrier
Brazil JV, Flávio Zimmer-
mann.
The case illustrated
Midea’s concern for its
employees, describing
how in early 2012, adver-
sity in the HVAC market
created severe uncertainty
for manufacturers in the
industry. Rather than
merely cutting its work-
force, Midea Carrier Bra-
zil took a novel approach
by sending 156 employees to the FAT program instead of
dismissing them outright. In detail, unemployment insurance
funds were used to pay part of the salaries of the employees,
and for their part, the company contributed the remaining
salary and provided subsidized vocational training courses for
employees whose employment contracts were suspended.
The Board of ABRH praised the initiative of Midea
Carrier JV, saying that they saw this program as a tremen-
dous success; FAT was designed to create a win-win situa-
tion for the working people and the company, as an attrac-
tive alternative to merely reducing costs through layoffs.
ABRH stated that Midea Carrier Brazil JV had set a sterling
example of engaging in best practices for industry in Ma-
naus.
In the final analysis, this
initiative looks to have
achieved its goal: 60% of
employees who would nor-
mally be laid off but were
instead entered into the
FAT program later re-
turned to normal status in
positions of greater respon-
sibility and filled 40% of
new job openings with the
inauguration of the new
factory. “With the FAT
program, the Midea Carrier
also promotes professional
development through training, further improving the rate of
retention for employees who have already gained valuable
knowledge of company culture, values and familiarity with
the company's strategic goals,” remarked Zimmermann.
MIDEA in the COMMUNITY
Midea Carrier Brazil Praised for FAT in the 6th
SHARE HR conference in Manaus By James Yu
HR specialists at the 6th annual SHARE conference