Samsung Electronics (005930.KS) is bringing production of its EHS heat pump boilers to South Korea, shifting output it had run in China back home as the government expands tax incentives for eco-friendly products. The company plans to accelerate its push into the heat pump market by also expanding domestic distribution and pilot programs.
Samsung Electronics said on the 24th that it built a 2,132-square-meter EHS heat pump boiler production line at its second campus in Gwangju and began test production on the 19th. After checking production processes and equipment stability and verifying the performance and quality of finished products, the company plans to begin full mass production in late September.
The EHS heat pump boiler is an eco-friendly heating solution that uses ambient air heat and electricity to supply indoor heating and hot water. Under output conditions of 35 degrees Celsius, it has a seasonal coefficient of performance (SCOP) of 4.9, generating heat energy roughly five times the electrical energy it consumes.
Compared with conventional boilers that burn fossil fuels, the system offers higher energy efficiency and lower carbon emissions, the company said. Using renewable energy produced by home solar panels to run the heat pump can also cut energy costs.
This year, the government recognized ambient air heat as renewable energy, subsidizing up to 70% of installation costs and easing the progressive electricity tariff system. This laid the institutional groundwork for a separate investment tax credit to apply to business and manufacturing equipment. In June, the Ministry of Climate, Environment and Energy briefed metropolitan governments and public agencies on air- and water-source heat pump projects, moving to expand adoption in earnest.
Samsung Electronics is the first heat pump maker participating in the government’s heating electrification program to set up a dedicated production line to shift overseas output back to South Korea.
At the Gwangju plant, Samsung Electronics plans to gradually increase not only assembly of finished EHS heat pumps but also the domestic sourcing of key components and manufacturing processes. Through this, the company aims to strengthen shared growth with its suppliers and help revitalize the local economy in Gwangju.
The new production line has an annual capacity of more than 100,000 units. All EHS heat pump boilers produced at the Gwangju plant will be supplied to the domestic market.
The Gwangju plant has been a core manufacturing base for Samsung’s major premium home appliances, including refrigerators, washing machines and air conditioners. Samsung Electronics plans to use the production technology and quality-control capabilities accumulated there to boost the competitiveness of its heat pump products. In particular, it plans to strengthen ties across development, manufacturing and quality control to respond more quickly to domestic consumer demand and market changes.
Alongside building its domestic production system, Samsung Electronics is actively taking part in pilot programs to expand heat pump adoption. It is supplying products to a heating electrification program carried out this year on Jeju Island, and in the second half it plans to join a second rollout covering 1,418 households to increase supply.
The company is also conducting field verification to secure product performance suited to regional climates and housing types. It is currently testing the heating and hot water performance and energy efficiency of its EHS heat pump boilers in actual homes in areas such as Yangpyeong, Chungju and Namhae.
Samsung Electronics employees manufacture products on the “EHS heat pump boiler” production line established at the second campus of the Gwangju plant in Jeonnam-Gwangju Integrated Special City. Samsung Electronics
Samsung Electronics employees pose for a photo in front of the first product made on the “EHS heat pump boiler” production line established at the second campus of the Gwangju plant in Jeonnam-Gwangju Integrated Special City. Samsung Electronics will produce the EHS heat pump boilers domestically, in line with the government’s heating electrification rollout project, shifting production that had been done in China. Samsung Electronics
The “EHS heat pump boiler” production line established at the second campus of the Gwangju plant in Jeonnam-Gwangju Integrated Special City. Samsung Electronics will produce the EHS heat pump boilers domestically, in line with the government’s heating electrification rollout project, shifting production that had been done in China. Samsung Electronics
Samsung Electronics is also expanding cooperation with Samsung C&T (028260.KS). At Samsung C&T’s residential research centers on Jeju Island and in Yongin, Gyeonggi Province, the companies are testing an “EHS All-in-One” solution that provides cooling, heating and hot water in a single system. The trials verify whether the heat pump system can be applied not only to detached houses but also to multi-unit housing such as apartments.
Lim Sung-taek, executive vice president of Samsung Electronics’ Digital Appliances Business, said the company will respond more actively to the shift toward heating electrification and accelerate the expansion of related businesses now that it has established a domestic production base for heat pump products. “By combining the heat pump technology we have built up in the global market with our domestic manufacturing and service competitiveness, we will continue to offer solutions tailored to Korea’s residential environment,” he said.