Burners are electromechanical devices that provide controlled flames for combustion applications such as boilers and furnaces. Between 1990-1995, oil combustion boilers started replacing coal combustion boilers in the domestic Chinese market. Between 1995-1998, the Chinese burner market saw increased diversification and competition as well as 20% annual growth in demand for industrial burners. The document also discusses Gino's in-house production capabilities, established distribution network, and international exposure in burner markets as well as two of its distributors in China.
48. FEIMA was a leading boiler factory in
north china.
It approached Gino for OEM(Original
Equipment Manufacturer) treatment
for more discount on burners. In
return, it promised Gino of buying 50%
and 100% of its commercial (and
industrial) and domestic burners
respectively from Gino .
52. Zhou took out the distribution channel
between Gino and its distributors
and made it clear that Gino had
the right to develop OEM business in a distributors
territory without its consent.