TREE NEWS update: Gree Electric Chairwoman Dong Mingzhu said rising copper prices are pressuring operations, with copper now costing five to six times as much as aluminum. She said Gree will keep using copper in its products and accept a profit hit of several billion yuan rather than switch materials to cut costs, citing aluminum’s uncertain stability, reliability and durability. Protecting product quality matters more than short-term gains, she said.
Gree’s Dong Mingzhu says copper costs to cut profit by billions
Dong Mingzhu's willingness to absorb a multi-billion-yuan profit hit rather than substitute aluminum is a notable signal on input-cost pressure in China's appliance supply chain, and it frames the copper-aluminum spread as a quality trade-off rather than a pure cost decision. The stance affects Gree's margin outlook and, indirectly, copper demand from a major consumer. Whether other manufacturers match that commitment to copper or quietly shift toward aluminum is the open question, and it matters for how the metal's industrial demand holds up as prices stay elevated.
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