Entry Details

Organization:UMHE Co - Toshiba KSA
Login ID:evangelos.kalentzis@ahi-carrier.com
Category applied for:MANUFACTURER/SUPPLIER OF THE YEAR (VRF SYSTEMS)
Submission date:12-Aug-2024
Submission Entry:
1.) Given that buildings consume 40% of global energy, within which at least 40% is consumed by HVAC systems, how has the goal of 1.5 C additionally impacted your product development strategies? What specific product design elements have you incorporated to support the 1.5 C goal? (150 words) (119)

Answer: Toshiba has adopted several global strategies and incorporated specific design elements into its VRF product line. Toshiba has transitioned to low-GWP refrigerants in VRF systems, also lowering the refrigerant charge.Aiming to reduce global energy consumption and carbon emissions we consider energy efficiency as top priority. This includes evolution of our advanced rotary compressor and high-efficiency heat exchangers, smart controls and optimization features like infinity variable control (0.1hz) and intelligent VRF control enabling the precise management of cooling loads, reducing unnecessary energy use and ensuring the system operates at best efficiency. Moreover, smart heat recovery allow re-use of heat for further energy savings. Toshiba remote monitoring and diagnostic capabilities (like NFC) enable predictive maintenance and easy troubleshooting and minimize energy waste. Finally, we invest in ongoing Research and Development and incorporate sustainable design practices into our systems to meet or exceed local regulations for energy efficiency and environmental impact.


2.) Describe the bigger picture that you see as a manufacturer/supplier of VRF systems. How does the sustainable development (ESG & energy efficiency) movement in Saudi Arabia impact/ influence you as a manufacturer or supplier? (150 words) (120)

Answer: Toshiba collaborates with local authorities, partners, and stakeholders to understand and align with the respective sustainability and energy efficiency goals and vision. We work closely with local entities (SASO, QCC, AHRI, Eurovent, ASHRAE) to ensure our VRF systems meet the specific requirements and standards of each region. We do participate in VRF standard drafting committees to provide input how we can enhance testing methods to utilize best of VRF technology. Moreover, we train our partners and energy professionals to design and maintain sustainable systems (HAP, after sales and best practices training). Toshiba-Carrier invests >700 million USD in R&D for sustainable product development. As a global VRF manufacturer, we acknowledge the importance of sustainable supply chain, ensuring that components and materials used in VRF manufacturing adhere to eco-friendly and ethical standards. We are following and monitoring the F-GAS&PFAS regulation and the impact in all regions we operate.


3.) To what extent do you believe you have the scope to feel concerned about, and to contribute to, the sustainable development of Saudi Arabia? How frequently are you able to precisely meet the specific needs of consultants and of developers/builders (clients)? What proportion of your annual revenues is from a "business as usual" approach to deliver the equipment? What specific actions have you taken to persuade consultants and clients to look beyond business as usual? (150 words) (121)

Answer: Toshiba, as part of Carrier group we are dedicated to empower consultants/developers/clients to create a sustainable and energy-efficient future. Our latest Hourly Analysis Program is the best tool in the global market. HAP simplifies complex calculations and optimizes system designs, it harnesses the latest advancements in AI and data analytics to deliver accurate, real-time insights that enable the creation of HVAC solutions that are not only energy-efficient but also environmentally sustainable. We provide training and guidance to ensure consultants and clients can effectively utilize Toshiba products to match with the energy and sustainability requirements. We offer customizable HVAC solutions to align with specific project requirements and local conditions.
We collaborate with local communities, governments and stakeholders for initiatives that address specific sustainability needs in all regions where Toshiba operates. We provide employment and skills development opportunities that contributes to local economic development and human capital enhancement.


4.) What is your strategy for allocating budget for R&D? (150 words) (122)

Answer: Innovation is the driving force behind everything we do. Our global network of R&D centers stands at the forefront of technology, pioneering solutions that shape the world's future. Toshiba deploys a global innovation network. Global research activities are managed and integrated so as to ensure all the research sites collaborate while at the same time remaining attuned to their local markets (think global, act local). We embrace diversity, fostering an environment where talents from diverse backgrounds unite to tackle complex challenges.
Toshiba R&D premises are strategically located in key innovation hubs around the world: UK, New York, Japan, India (including AI) and China.
Toshiba prioritize R&D initiatives with significant potential for reducing environmental impact and achieving sustainability targets. We focus in green technology, renewable energy, energy-efficient products, low GWP refrigerants and smart controls (AI) and collaborate with research institutions, universities and industry organizations.


5.) As manufacturer/supplier, what specific actions do you take in terms of handholding on installation and training on operation? (150 words) (123)

Answer: We organize regular trainings, webinars and workshops locally or at factory premises to keep customers up to date on the latest developments in VRF/HVAC technology. Our trainings include commissioning, maintenance training, installation guidelines, best practices and most important safety guidelines to ensure safe and efficient installation. All above are accommodated by analytic manuals and documentation. Our VRF software tools generate piping and wiring diagrams to help technicians on site. We certify technicians and installers creating experts in the field and building confidence among customers. We emphasize environmental responsibility in handling refrigerants and waste materials and encourage customers to follow sustainable practices during installation and maintenance.
Moreover, Toshiba developed industry first NFC powered commissioning and troubleshooting allowing diagnosing and making adjustments without spending too much time on site. This technology minimizes the need for on-site visits, saving time and resources and contributing to a sustainable environment.


6.) What transformation in performance of equipment can you speak of, in terms of energy efficiency? Can your equipment offer outcomes beyond what is expected? [Note: The transformation could be in technology, business process, product development, R&D, human resources (keeping them motivated and inspired, as the basis for innovation).] (150 words) (124)

Answer: We believe that fundamental elements on HVAC equipment will continue to improve. Innovations in compressor design, heat exchangers but most important is the commitment to sustainability. Toshiba will continue to prioritize the use of low-GWP refrigerants and eco-friendly materials contributing to reduced environmental impact. We expect heat recovery technology to gain ground and big contribution on smart controls with usage of AI technology and IoT.
Toshiba serves the global decarbonization and smart electrification by optimizing heat pump products. We apply the KAIZEN (Continuous improvement in Japanese) by motivating and training our people. Keeping employees motivated and inspired is the basis for innovation as motivated employees are more likely to develop ground-breaking solutions. Toshiba uses strategically located regional warehouses to minimize time and resources, reduce CO2 footprint and serve clients better. Our business transformation include corporate use of electric cars by 40% (target is 100% by 2025 in key regions)


7.) What are you doing to speed up the product development cycle to comply with fast-evolving MEPS requirements? (150 words) (125)

Answer: Toshiba holds open communication channels with regulatory authorities in all regions we operate. We gain insight and participate in drafting the standards. We maintain cross-functional teams (energy engineers, environmental engineers, R&D, compliance, marketing) to monitor regulatory changes and keep up with tendencies in the market to stay ahead of upcoming regulations. We stopped non-inverter products in all regions. Toshiba invests in training and development for employees, keeping them informed about latest regulations, technologies, and industry best practices. We allocate significant resources to R&D investing in technologies that enhance energy efficiency, reduce environmental impact, and align with latest regulations. We conduct compliance and strict in-house testing early in the development cycle to identify and address potential issues before the final product design is completed. We implement advanced modeling/simulation tools to predict the performance of VRF systems under different operating conditions (pioneers in simulating partial load conditions)


8.) To what extent are you incorporating synergistic AI, IoT to bring about improvement in how your equipment are used? How much are you as an organisation adopting/utilising AI and IoT to contribute to a qualitative change in performance, such as improving energy efficiency? (150 words) (126)

Answer: Toshiba has integrated AI and IoT technologies to optimize the operation of HVAC systems specifically in the areas of energy efficiency and optimization, predictive maintenance and remote monitoring. TCCR-NET, the Toshiba Carrier Comfortable Remote access NETwork system is a cloud-based IoT service that delivers remote maintenance service for air-conditioning systems. Features include round the clock remote monitoring for abnormalities, refrigerant leak inspection report, air conditioning demand forecast, energy saving diagnosis and more. With this advanced service we aim to meet customer needs and contribute to reduced management costs and higher added value. Toshiba already used AI for HVAC building solutions including ZEB in Japan. AI contributed to precise air conditioning control, virtual calculation of radiant temperature, balancing comfort and energy saving.
Toshiba uses advanced wifi controllers and cloud services with AC failure prediction and IFTTT functions.
Finally, Cortix platform can diagnose equipment issues and determine corrective actions.


9.) In the past one year, how many of the projects you have served secured a Green Building certification? And under which rating systems and at what level of certification? (100 words) (127)

Answer: Since the beginning of the new millennium Toshiba equipped green buildings with its innovative and sustainable HVAC solutions.
The first BREEAM building in Bulgaria (Building 15 Trade Center in Sofia) used Toshiba VRF technology (BREEAM Very Good)
In Dubai for project "Kazna data center" (LEED Gold) we secured >3000 kW of cooling with Toshiba VRF (2023)
In KSA, TARSHID upgraded to inverter systems using Toshiba HVAC solutions, following LEED certification.
In Jeddah, Toshiba secured BAGHLAF compound (2000 kW) aiming at LEED gold.


10.) What pricing policy do you follow as a manufacturer or supplier of VRF systems? What are you doing to attract customers - lowering cost of goods and aftermarket services, offering attractive warranty terms, other unique value propositions, etc.? (150 words) (128)

Answer: We follow an honest and transparent pricing model. A competitive base pricing (market research and alignment) combined with customized packages based on customer needs and different discounts for small/medium/large/strategic projects. Our offers are transparent with analysis of cost of equipment, installation, any additional services and no hidden fees and charges. Our warranty terms are >= than market standards reflecting the confidence in our VRF quality (5 to 7 years warranty and free startup & commissioning in most regions).
We apply rebate schemes for larger orders. Our sophisticated software calculates the consumption of installed HVAC equipment and we will soon implement efficiency certificates (guarantee the efficiency of our equipment or provide compensation). We continuously seek customer feedback to improve our pricing strategy and increase our competitiveness. We execute regional replacement actions (fixed speed vs inverter, old vs new refrigerant) with subsidized prices according to the age of old equipment


11.) What management strategies and guidelines have you established to counter payment delays and other such instances, which are affecting your cashflow as a manufacturer or supplier, and are preventing an ideal building construction eco-system (involving all stakeholders) from forming? What creative strategies are you utilising to circumvent/overcome cash flow challenges? (150 words) (129)

Answer: We provide incentives for early payments and ensure that contracts have clear payment terms and deadlines. We diversify customer base and avoid over-reliance on few customers or projects to reduce risk of payment delays. We offer early payment discounts to encourage clients to settle their invoices promptly.
We make partial deliveries to the site allowing for partial invoicing and quicker payments. We embrace digital payment solutions and invoicing platforms to expedite payments and reduce administrative burdens. We conclude our B2B platform (Microsoft 365) for online ordering/ payments with all B2B customers.
We negotiate with our factories on extended payment terms. We engage with project stakeholders early in the planning phase to understand their financial constraints and potentially align payment terms accordingly. We formed a strategic supply-chain eco system in 4 continents (Europe, Africa, Oceania, Asia) ensuring availability for clients.


12.) What do you envisage the future of HVAC to be? What futuristic scenario are you working towards in product development? What are you doing that makes your equipment reliable; affordable; minimises harm to the environment (air, sea, water... during production, operation and disposal after the equipment has ended its lifecycle); makes the equipment easy to install; makes it possible to overcome systemic faults in design, construction and installation disciplines? (250 words) (130)

Answer: HVAC business will adopt a circular economy approach by designing equipment that is easy to upgrade, refurbish, and recycle at the end of its life (re-claim and re-use of refrigerants). Emphasis will be placed on Indoor Air Quality (IAQ) by incorporating air purification technologies and filtration systems to address health concerns and adapt to changing environmental conditions. Toshiba has already a comprehensive range of in-build and optional filtration solutions for any type of application (residential, commercial, industrial) and continuously develops HVAC products that adhere to the rigorous ASHRAE 241 standard (Control of Infectious Aerosols) ensuring healthier and more comfortable indoor environments.
Toshiba prioritizes the use of recycling and eco-friendly materials in its HVAC products, promoting sustainability and environmental responsibility.
Manufacturers will focus on low-GWP refrigerants, advanced heat recovery, and renewable energy integration to reduce environmental impact.
Toshiba already introduced R32 VRF heat recovery and is gradually introducing heat pump lineup with natural refrigerants (R-290 for air-to-water heat pumps) Manufacturers will develop systems that are easier to install and maintain, reducing labor and time. Toshiba already uses AI and preventive maintenance tools to minimize human interaction (Cortix AI & NFC powered VRF systems)
Toshiba's commitment to quality shines through its unique rotary compressors, in stark contrast to the industry tendency of cost-cutting and outsourcing scroll compressors in China, ensuring that every component is engineered to the highest standards of performance and reliability.
The revolutionary triple-rotary compressor by Toshiba has won multiple awards in several countries around the globe.


13.) Anything else you wish to say, which you feel would bolster your case? (150 words) (131)

Answer: Toshiba made history by introducing the world's first inverter air conditioning system in 1981, a ground-breaking innovation that revolutionized the industry. This marked the beginning of Toshiba's legacy in providing energy-efficient and environmentally responsible HVAC solutions. Toshiba HVAC products are known for their quality and performance. Our VRF systems are highly regarded for their energy efficiency, quiet operation and reliability.
Toshiba is the only company with 20 years of expertise employing full inverter compressors in VRF systems to deliver energy-efficient and precise climate control.
Toshiba launched in 2022 the world's first hybrid VRF with low GWP refrigerant R32 which can operate as heat pump and heat recovery.
Toshiba's corporate values emphasize ethics, social responsibility and sustainability. AHI Carrier/UMHE extensive experience is underpinned by decades of delivering innovative HVAC solutions, designed to meet the unique needs of diverse climates and environments across Middle East, Europe, Africa, Oceania and Asia


Supporting documents:
References:CCAKSA24-MSYVRF || evangelos.kalentzis@ahi-carrier.com

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