This summer, as Europeans sought refuge from the heat indoors, Chinese air conditioners became a hot commodity in the region. According to customs data, China's exports of such air-cooling units to the European Union reached $3.76 billion in the first half, up 43.2 percent year-on-year. But behind this surge lies a little-known success story from a small county in Shandong province's Tai'an.

Inside the workshop of Tai'an Yongrui Intelligent Equipment Co Ltd in Dongping county, a fully automated production line for gas-liquid separators runs at full speed. Robotic arms weld and inspect parts every few dozen seconds. The gas-liquid separator is a core component of any air conditioning system — essential for stable cooling. For years, the production equipment for this component relied heavily on imports, leaving a weak link in China's home appliance supply chain.

Instead of chasing scale, Yongrui focused on this niche.

"We studied leading companies like Gree and Midea and identified automation in mass production as a common challenge," said Tian Ximing, deputy general manager of the company.

Their self-developed production line was recognized as one of Shandong's "first sets" of major technical equipment in 2025.

Five years ago, the company was operating out of a small 800-square-meter workshop with just a few old machines. Founder Liu Yong's simple question — "What's your biggest headache?" — led him to recruit Dongping-born engineers from Qingdao and Suzhou, offering salaries comparable to those in first-tier cities. Over the space of five years, the team secured 48 patents and significantly lowered its equipment costs.

Today, Yongrui supplies Gree and Midea, with separators shipped to Europe in finished units. Revenue surged from 7 million yuan ($1.03 million) in 2022 to over 50 million yuan last year, and is expected to keep growing.

Yongrui's story shows how deep specialization in a small county can help strengthen a vital part of the global supply chain.

A fully automated production line for gas-liquid separators runs at full speed at Yongrui Intelligent Equipment in Dongping, Tai'an. [Photo/Tai'an Daily]