CLOSERISSUE 20DEC.2014

TÜV RHEINLAND GREATER CHINA NEWS

TÜV Rheinland is the Only Certification Body in Sino-German Electric Vehicle Charging Program

TÜV RHEINLAND TAIWAN GOT TAF ACCREDITATION FOR NCC CERTIFICATION

BODY OF LP0002

TÜV Rheinland Shanghai Opens Vacuum Cleaner ErP Performance Test Laboratory

FutureAsk the

What are the trends and challenges industries will face

in 2015? What are the roles of the certification business? Join us at TÜV Rheinland and

find the answers!

Contents

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Ask the Future

Marketing: The Relentless Pursuit of Perfection

Softlines: From Remote to Central

Hardlines: Developing Deeper and Broader Services Based on Technology

Electrical: Top 10 Breakthroughs Not to Be Missed, Now and for the Future

Commercial Products and Industrial Services: One-Stop Service for the Industry Chain

Solar/Fuelcell Technology: Extend Service Portfolio to Create Potential Business

Food Services: Turning Crisis into Advantage: Opportunities for Food Inspections

Mobility: Satisfying Local Customers through Localized Services

Rail: A Fruitful Year of Many “Firsts”

Systems: Competitiveness = Impeccable Service Quality × Continual Innovation Value

Training and Consulting: Capture the Industrial Pulse and Follow the Trend

SPOTLIGHT

All-around, Modular Solution for the Effective Promotion of Factory Safety

The Only Certification Body in Sino-German Electric Vehicle Charging Program

TÜV Rheinland Participates in the Founding of the Asia-Pacific International License Developed and Certificated Center

Hong Kong Offers Japan PSE Certification Service

Taiwan got TAF Accreditation for NCC Certification Body of LP0002

TÜV Rheinland Greater China Enters the Wearable Device Market with WeChat

TÜV Rheinland Signs a Framework Agreement on Strategic Cooperation with CSR

Shanghai Opens Vacuum Cleaner ErP Performance Test Laboratory

TÜV Rheinland’s Past and Present – Past

Customer Testimonial: Zhuhai Gree Electric Appliances Inc.

Customer Testimonial: Foton Motor Inc.

Client Gatherings

FEATURED SERVICE

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CONTENTS 3

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53USA TÜV Rheinland Introduces EN 1090 Certification Services

53Germany Joined the Connected Lighting Alliance

53UK OpenSky Expands IT Infrastructure and Cybersecurity Services

53Japan ENERGY STAR Scope of TÜV Rheinland Japan Expanded to Include Data Center Storage

GLOBAL NEWS FLASH

TECHNICAL EXPERTISE

EU Tightens Parabens, CIT and MIT Restrictions under Cosmetic Regulation

EU Amends Cosmetic Regulation to Restrict 5 Preservatives and a Nano-UV FilterSmart Home Communications: TÜV Rheinland Hong Kong Sole Recipient of Several Accreditations from Bluetooth, KNX and ZigBee

Beach Cleaning

Donation to Taiwan Fund for Children and Families

Visiting the Orphanage

Visiting the Disable Children

Supporting Lushan Renjia School

ISSUE 20CLOSERCredit

Chief Editor

Editor

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Ricky Xu +86 400 883 1300 (China mainland)+852 21921022 (Hongkong)+886 2 25287007 (Taiwan)

service-gc@tuv.com

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Clare ZhangMichelle xiaAlly ShenIsaac Yuan

2014.12

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SPOTLIGHT04

SPOTLIGHT 05

As technology advances, concepts about “what is safety” and “how to maintain safety” have also changed. When product safety is challenged by new technology, industries also need to discern the change in the industrial structure to make an immediate response. Realizing that understanding the past and capturing the present are the ways to get ahead of the game, TÜV Rheinland always provides diversified services supported by solid technical capacity to help customers cultivate the global market regardless of how technology advances and how industry evolves.

In the current issue of “CLOSER”, we will review the change in the major trends of different industries in 2014 and share with you TÜV Rheinland’s response and what new services, extra resources and better solutions TÜV Rheinland offers in 2015 as your long-lasting, reliable partner.

Ask the FutureWhat are the trends and challenges

industries will face in 2015? What are the

roles of the certification business? Join us

at TÜV Rheinland and find the answers!

SPOTLIGHT06

Interview with Li TaoVice President, Marketing,TÜV Rheinland Greater China

The Relentless Pursuit Of Perfection

MARKETING

SPOTLIGHT 07

TÜV Rheinland:Rigorous, dependable and sustainable.Every brand has its own position. We are from Germany and our 140-year history is backed by our rigorous, dependable and sustainable technical services. We not only provide advanced technical consulting services but also want to expand our services to more customers. I don't really agree with the view that a certificate is just a certificate no matter who it was issued by. What is a company's long-term development goal? When it comes to buying a certificate through a mid/low-end supplier or going through a mid/high-end supplier to ensure that products will not cause serious harm and damage in future sales, or threaten the survival of the business, every company knows which will cost more.

So, it all comes down to asking ourselves: What lies beyond our service? What makes our quality and expertise unique? Can we offer our customers additional value and support? The market will be the ultimate test for the success of our positioning.

A: We made several major innovations in 2014; first, we became the first service provider to offer complete testing and certification services for smart wearable devices. Second, with the rapid development of electric vehicles, TÜV Rheinland was honored to be a part of the Sino-German Electric Vehicle Charging project and became the only approved testing and certification services provider. Third, a number of industrial safety accidents this year such as the oil pipeline explosion in Qingdao, the gas explosion in Kaohsiung, and the dust explosion in Kunshan

2014Q: What are the major developments and innovations in testing and certification services in 2014?

all highlighted the many safety concerns that exist in the industrial sector. The ATEX and functional safety services that we strongly promoted in 2014 offered solutions for preventing these potential hazards. Fourth, food safety problems happened in many places in 2014. Against this backdrop, we focused our development on two key areas to make TÜV Rheinland the guardian of food safety for the whole society. For basic food testing, we are continuing to expand our presence in each region, actively participating in food-related trade shows, and setting up partnerships with large retailers and producers. At the same time, our food safety traceability solution from the farm to the table ensures the safety and traceability of the entire food supply chain. As food safety requirements become more strict and transparent in the future, increased consumer awareness on food safety will drive a change in the consumption model. Testing and certification services will then naturally grow as well.

Response to Migration of Industries to Central and Western China

We not only have vertical lines of business but also horizontal regional offices. Such a matrix-shaped management structure allows us to make strategic investments in response to customer shifts. For example, with some of the larger IT manufacturers making the move to central and western China, we have followed our customers in setting up new sites in central/western China over the last two years to provide them with more convenient local services.

Continuous Customer Communications

We interact with our customers in multiple ways every year. Greater China alone hosts more than 400 technical meetings in one year. During these interactions, we try to communicate our understanding of the latest testing requirements to our customers. We have always embraced this philosophy; we are not perfect

but we are in the process of pursuing perfection. During this process, we must remain open-minded and try to incorporate the voices of our customers into the company's pursuit of perfection.

Contact with More End Consumers

In the brand image enhancement project that we launched for Greater China, the core requirement was to teach and familiarize both customers and end consumers with the TÜV Rheinland brand, as well as show them how they can make their lives safer. For example, we invited many customers to share their stories with TÜV Rheinland in order to influence other customers and potential customers. In addition, we also carried out more pioneering experiments such as the Early Branding project where we promoted the philosophy of product safety in kindergartens and schools. This let the children know that we are there watching over safety. We have always believed that if we care about our customers' customers, then our customers will always choose our service as well.

2015

Q: What marketing Ideas do you have for 2015?

Providing total solutions with B2C techniques

A: The marketing slogan for 2015 is Solution 2015. We will provide customers with total solutions rather than just a single service or certificate. We will introduce innovative B2C techniques into the B2B sector in order to identify and understand our customers then help customers solve deep-seated or long-term problems. From a marketing perspective, we will help our Sales department and customers to communicate how we can provide total solutions. We will use our latest marketing channels to actively interact with customers and present our solutions to the customer as soon as possible.

SPOTLIGHT08

Interview with Dr. Keith Kwok Vice President, Softlines and Food Services, TÜV Rheinland Greater China

From Remote to Central

SOFTLINES

2015

SPOTLIGHT 09

A: We have launched the following new services in 2014:

• VOCs – vehicle interior air quality

• IAQ – indoor air quality

• Biodegradability

• Cosmetics

• Fireworks

Although these services are not large components in our business at present, they have high growth potential, and we hope to develop them more in 2015. In terms of target markets and customers, VOCs and IAQ are targeted at the local market, while Cosmetics is targeted at both the local and export markets. Biodegradability and Fireworks are targeted at the export market. Our testing/service capabilities include:

VOCs – in-vehicle air quality:

Hong Kong/ Shanghai

IAQ – indoor air quality:

Hong Kong/ Shenzhen/ Shanghai

Biodegradability :

Shanghai

Cosmetics:

Hong Kong, Shenzhen, Shanghai (microbiological testing)

Fireworks:

Changsha, Hungary

2014Q: What have been the key breakthroughs in 2014?

Q: Which business developments have most excited you in 2014?

Q: Why do remote offices have greater business potential?

Q: Which areas do you expect to grow in 2015?

New testing lab to be opened in Qingdao

A: The growth of our service in toys and textiles has been average. However, business growth in remote locations such as Ningbo and Qingdao has been above average. As the business potential in Qingdao is strong, we will open a new chemical lab there in December. Currently, testing for Qingdao is conducted by our Shanghai office. The new lab in Qingdao is vital to better meeting the growing demand and maintaining our turnaround times. We expect the new lab to help us develop local business more efficiently.

Local support brings us closer to customers

A: Our main office support for our remote offices is better than ever, with Ningbo, Qingdao, and Shanghai, for example, working closely together. Previously, clients from Ningbo, where we do not have a lab, contacted the Shanghai office directly with testing enquiries. In 2014, our Shanghai colleagues have worked with local Ningbo sales staff to forge closer relationships with local clients. This has helped us to not only provide the services that clients want, but also to gain a better understanding of our clients’ background and markets, so that we can offer them more services.

The opening of the new lab in Qingdao requires support from local staff, who naturally have a better understanding of local demand, and will provide valuable input for the business development of the lab.

Growth expected in remote offices, toxicological risk assessment, and fireworks

A: Remote offices will be our star performers—we expect their growth to outstrip that of the main offices.

Demand for new services such as toxicological risk assessment (TRA), a service which helps cosmetics clients to prove that their products do not harm human health, is growing. We decided to provide this service ourselves in order to shorten lead times and costs for our clients. We expect our TRA service to meet our cosmetic clients’ needs and provide them with a one-stop solution.

Fireworks is another area with significant growth potential. We currently target the EU market, but in 2015 aim to explore the US market. We are the main testing provider for the EU-export fireworks market.

SPOTLIGHT10

Developing Deeper and Broader Services Based on Technology

HARDLINES

Interview with Steven Xi Vice President, Hardlines,

TÜV Rheinland Greater China

SPOTLIGHT 11

2014Q: What are the highlights of the Hardlines Division in 2014?

2015Q: What are the prospects in 2015?

New testing lab to be opened in Qingdao

A: Furniture: For Forest Stewardship Council (FSC) certifications such as COC, FM and EUTR, we have grown rapidly from issuing around a handful of certifications in early 2014 to nearly 100 today. This is thanks to our creation of a dedicated team, appointment of specialized project managers and strong project support from the German team. We also systematically planned the targeted development of traders and plantations to win a high level of acceptance from our customers.

Machinery: For the machinery field, our safety inspection of site fitness equipment is a very innovative project that is currently concentrated in Taiwan and Hong Kong. This project was developed at the request of local property and housing management authorities. TÜV Rheinland drew on our professional knowledge to eliminate potential safety hazards for sites and fitness equipment in parks, communities, kindergartens and schools. By providing preventive advice and corrective actions for hazardous parts in the equipment, we help ensure the safety and reliability of this equipment during use. This is not just a unique service we offer. It also gives local citizens a direct appreciation of TÜV Rheinland's professionalism and contribution to society.

Household Quality: We are now aggressively introducing our more rigorous Western industry standards into the definition of China's national GB standards. Apart from participating in the standards definition committee to introduce TÜV Rheinland's unique wear-testing standard to China and improve the standard of Chinese products, we are also aggressively moving beyond the German market in household quality and into tier-1 American brands. Our goal is to expand Germany's high quality standards and services into other regions. Excellent progress has been made in this field so far.

Providing passports for global markets for our customers

A: In 2014, we made some progress in regional expansion so, for 2015, we will not only maintain the German market where we have performed well traditionally, but continue to monitor other Western countries with developed markets and emerging markets such as the Middle-East and Brazil for their testing and certification services. This will enhance the global nature and variety of services in the regions we support.

In addition, our services must express the spirit of service, care about customers' interests, solve actual problems and create value for the customer. This is not only true for outside customers but internal ones as well.

Q: What are the industry trends in 2014?Expanding western markets & enhancing customer management

A: The testing and certification services market for Hardlines is holding even at the moment. To make a breakthrough in the very competitive traditional certification markets, we put our focus on the development of several new service projects this year such as roof racks and new regional certification services. Progress has been made in emerging markets such as Brazil, the Middle-East and Australia. In the testing field where we have come under pressure on price and testing cycle time, we not only continued to consolidate our existing German market but also accelerated our development in other Western markets such as France, the U.K., the U.S. and Canada. To us, these markets are all brand new territory with massive business opportunities.

This is, generally speaking, still an industry driven by retail. This is why we strengthened our own sales and key account management work in 2014, in such ways as establishing a collaborative mechanism with the retail industry that will promote more stable and healthy business growth. These efforts will all provide us with a strong foundation for future growth.

We will also continue to integrate existing resources to make our total solutions more attractive to the customer. The goal is to provide a one-stop service from product testing, certification, training, factory inspection and goods inspection to

multinational customs clearance services. These will all ultimately improve our sales flexibility.

The final and most important point is that strong technical support serves as our backup for business development. It is also the prerequisite for growth in sales and key accounts management. We will therefore continue to increase investment in personnel training and equipment inspection in order to achieve the economies of scale and maintain our leadership.

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Smart Wearable Devices

Power Supplies and Displays

SPOTLIGHT12

ELECTRICAL

Top 10 Breakthroughs Not to Be Missed, Now and for the Future

Interview with Uwe Halstenbach Vice President, Electrical,

TÜV Rheinland Greater China

TÜV Rheinland Greater China’s Electrical line, which is its largest, has achieved a number of breakthroughs and been witness to a range of clear market trends in many product sub-lines in 2014. In 2015, we will leverage this knowledge so as to maximize customer satisfaction and further expand our business. Following are the top 10 breakthroughs you must know about:

We have seen the sudden boom in usage of smart wearable devices since the end of 2013. With very quick action a comprehensive wearable device standard, addressing safety, smart function, and wearable function, was developed by TÜV Rheinland and launched as the first of its kind in the industry in July 2014. This service has now been successfully extended to Tencent Wechat Sync. We will soon upgrade the wearable device standard 1.0, bringing out 2.0 in 2015, which we believe will provide additional value for our customers, making their products more distinctive in terms of safety, quality, and function.

Despite the unfavorable situation of the power supply and display environment, we have been able to develop innovative testing purely driven by customers’ real needs, such as the first flicker free and low blue light (LBL) testing and certification service; first curved monitor testing protocol;

With the booming mobile-centric age, battery safety has

been become a major concern for consumers and manufacturers. In 2009 TÜV Rheinland opened our first battery lab in Shenzhen, and recently we opened a new battery lab in Taiwan for BSMI-standard testing. A high

number of projects for the CTIA battery testing of portable-device batteries (certification for the American market) have been received, the number of IECEE CB projects for batteries has grown by 70% and, additionally, we have developed four of our performance standards for batteries in 2014. All these factors will support TÜV Rheinland’s further investments in this area in 2015, such as an EV battery lab for performance testing for batteries up to 400 kg and for R100 homologation, as well as a new lab in Shanghai for portable batteries, to serve our customers better with a more extended service scope and capacity.

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ICT

Internal Efficiency

Energy Efficiency/Energy Saving

Mobility Local Market

MAS

Performance Testing / FFU

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SPOTLIGHT 13

TÜV Rheinland will continue to extend its service scope in the

ICT field. In 2014, TÜV Rheinland has become an NCC certification body for short-range devices, and the first PMA lab in Greater China is about to receive recognition this month.

Demand in the mobile phone 3G/4G, Smart Home (DALI, SP500, and HomePlug), and Smart Grid sectors is quite strong, and the technology involved in each varies greatly. Advancing with this trend,

and testing for large monitors of nearly 100 inches. Down the road, more customized testing will be rolled out for 4K, 6K, and 8K TVs and monitors. On the other hands, thanks to cloud computing, our high-power UPS and 3-phase power supplies for servers and data centers have enjoyed very positive growth in 2014.

Mobility is an exciting new area for us. Our Guangzhou EMC mobility lab is officially recognized by a variety of automotive brands, including Mazda, PSA, Nissan, GZ Mitsubishi, and many local ODMs. We are now in the process to attaining recognition by VW.

Due to the strong demand, we are now operating in 3 shifts. A new EMC mobility lab will also be set up in Shanghai.

TÜV Rheinland not only provides Mobility product testing and certification. We will also be undertaking the first consulting project to help a locomotive company build its own test center. The first stage will include High/Low Voltage component testing, EMC, and quite possibly physical and chemical analysis. This will not be a single case -- more and more local OEMs are setting up component EMC specification and supplier management. Seeing the opportunity in this fast-growing market, one of our focus areas in 2015 will be the provision of more consultancy services on top of traditional testing.

we are involved with more and more alliances: Bluetooth, ZigBee, KNX, OpenADR, Wi-Sun, G3PLC, IP500, Powerline, etc. This will certainly help us to stand at the cutting edge of the ICT field and be able to transfer state-of-the-art know-how to our customers in the coming years.

As a local company with a history of more than 25 years, local business has always been one of our focus areas. We are glad to participate in the regional government’s market-surveillance project for luminaires in Zhabei District, which will be finished by the end of this year. After this good start, we will further expand our positive cooperation with local government, particularly in light of the expectation that the local market will soon be fully open to all TIC companies. Becoming a CCC lab and certification body for major Electrical products will be a key future development for us, and another area of opportunity we are targeting is tailor-made services for eCommerce companies. To sum up, we will be closely watching the local market in 2015, exploiting the historical opportunity wherever opportunity is identified.

Energy saving and efficiency has been a hot topic since 2009, with significant market opportunities. In 2014, we have seen a very healthy increase in Green Mark numbers. To support this trend, we have established an accredited energy efficiency lab for refrigerators in Qingdao, expanded our Energy Efficiency lab for air-conditioners in Guangzhou, and opened a new Vacuum Cleaner ErP lab in Shanghai. To handle other kinds of energy-saving products, such as water heaters and range hoods, our Erp testing service will be extended in both scope and into various regions across Greater China in 2015.

Besides our regular testing and certification services, performance testing, or Fitness for Use (FFU), is another area in which TÜV Rheinland can provide distinctive value for the customer. An additional designated expert team has now been established in Shanghai to test the FFU performance of home appliances and luminaires. I plan a doubling of year-on-year turnover in this business. To cope with the increasing demand in this area, we will further expand our NATC lab and will establish a new lifetime simulation and FFU lab in Shenzhen.

Interesting applications such as Low Blue Light testing for Monitors and TVs have also been rolled out to ease the concerns of end-users regarding the impact of blue light on their eyes.

Our Market Access Service is one of our strongest weapons in acquiring customers. We now can provide the service in over 100 countries, and the overall growth in terms of the number of issued certificates has hit 24% in 2014. Our star service, remote certification in Australia, has grown over 100% this year as a result of its significant reduction in lead time and cost for the customer. In North America, more and more buyers are accepting our cTUVus certification. One specific recent example is our cooperation with Beats by Dr. Dre. We are their service provider for their entire product line. The market for us to explore is still huge, and we will extend our scope into new countries with shorter lead times and competitive pricing.

Customer feedback shows that clients always desire

service to be faster, with less human error. We have therefore improved our internal efficiency by rolling out ATS (Auto Test Solution) in various locations to increase testing efficiency. For energy efficiency for power supplies, we have been able to reduce testing times by 10%, shortening our testing lead times and reducing human error.

SPOTLIGHT14

One-Stop Service for the Industry Chain

COMMERCIAL PRODUCTS AND INDUSTRIAL SERVICES

Interview with Dr. Weikan ChenVice President,Commercial Products and Industrial Services,TÜV Rheinland Greater China

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SPOTLIGHT 15

One-Stop Service for the Industry Chain

2014

2015

What breakthroughs might we make in 2014?

What are our areas of interest in 2015?

What industry trend did we see in 2014?

The Sino-German electric vehicle project established TÜV Rheinland's reputation as the leader of the electric vehicle testing and certification services market.

In terms of what happened in 2014, an important breakthrough made by our Commercial Products division was the Sino-German electric vehicle project. The project established TÜV Rheinland's reputation as the leader of the electric vehicle testing and certification services market. Apart from providing our services to EV whole-vehicle makers, we will introduce a number of services for component makers including quality control and safety testing in order to guide the development of technical safety in this industry chain. During the Sino-German project, we set up cross-department partnerships within TÜV Rheinland to provide customers with a complete suite of technical guides, training and review services. In other words, our EV business has now been developed into one of the total services offered by TÜV Rheinland. This important project therefore not only stimulated the vertical development of our Commercial Products division but also stimulated horizontal development in related departments. It was therefore the highlight of Commercial Products in 2014, because there is no other certification company that can match us in the EV industry to date. Only TÜV Rheinland has achieved this level and standard of service. The project therefore established in one fell swoop the leadership of TÜV Rheinland in the EV market.

TÜV Rheinland is successful in many fields of business, such as Photovoltaic. Our long-term investment in PV established our competitive advantage in the market and eventual leadership. In the same way, we hope that a high-tech project like the Sino-German project will establish our leadership in EV technical services and this has been our longstanding business

The power generation industry chain and function safety are two major focus.

We will focus on several areas next year. One is the entire power generation industry chain where we will connect product-oriented technical services with system-oriented technical services. The power industry chain, including high, mid and low-voltage power transmission, power plant design, transmission/transformer product design and performance evaluation, and electric vehicles will all be connected together and studied as a complete supply chain. We will provide our services for every link. At the same time, we will provide functional safety services to a number of industries to improve quality management capabilities from a system perspective.

Chinese industries have progressed from individual products to industry development as a whole.

We have observed several features in industry changes. Chinese industries have progressed from individual products to industry development as a whole. In the electricity industry chain from generation, transmission, transformation and household use, every link is developing rapidly. The value of exports has continued to grow, especially for power transmission and power plant. The volume of exports to the Middle-East and Africa is growing rapidly making this development trend in the Chinese industry chain as a whole all the more obvious. Companies now want certification companies to provide their services for an industry chain rather than a particular step.

At the same time, we are seeing significant growth in some transportation equipment industries such as subways and railways. These have also spurred the development of construction equipment such as shield borers. The construction machinery industry is showing signs of recovery and there are two main types of construction machinery; the home construction equipment side has not yet completely recovered but engineering components and facilities for railway transportation have now thawed and exports have resumed. This trend in the industry has an effect on our business development as well. For example, the market now needs more of our technical services especially in functional safety and this is an overall market trend.

The value of functional safety is very high and is related to many

development model. At the same time, close collaboration with industry leaders such as BMW, Mercedes-Benz and Daimler led to strong industry recognition of our service capability, making our market leadership even more convincing. This was the most worthwhile event that Commercial Products had to share with everyone in 2014.

industries. Nowadays, any design, including home appliances, involves functional safety issues. Our home washing machines, for example, are now all software controlled. They were once all controlled by hardware but they now run on programs which all involve software analysis for functional safety. Functional safety is therefore a constant theme in the entire industry chain and so this is a key direction of development as well.

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SPOTLIGHT16

Extend Service Portfolio to Create Potential Business

SOLAR/FUELCELL TECHNOLOGY

Interview with Robert Struwe Vice Presiden, Solar/Fuelcell Technology,

TÜV Rheinhland Greater China

SPOTLIGHT 17

2014

2015

Q: What were the key achievements we obtained in 2014?

Q: What is your plan for 2015?

Q: What action do we take to guarantee our service quality in such challenging situation?

Q: What is the breakthrough in 2014?

Q: What is the next big thing?

Maintaining strong market share, and expanding service portfolio

A: This year we were able to rapidly increase our sales for PV Power Plant inspections and also to maintain our strong share in the more and more competitive market for PV module and component qualification. We achieved that by intensifying sales effort, improving service quality and shortening project time. Further we developed several new services (e.g. an energy yield monitoring service), which many customers show great interest in and which will provide us an opportunity for future growth.

Discovering customers’ needs with new services

A: As mentioned before, we will extend our service portfolio to cover new products and address the needs of market players who are not served by us right now. To achieve that, we will need to develop new sales channels, obtain new competences and create new procedures in various fields. Simultaneously we will continuously invest effort into improving our services in the traditional PV business regarding service quality, project time and customer orientation.

A: We are spending much effort into making our processes more efficient and customer oriented while we at the same time maintain the high qualification and motivation of our staff.

A: With PV installations of 14 GW targeted to be set up this year in China, our service portfolio for the PV Power Plant industry meets a huge demand. Compared to last year, we were able to increase our order volume in this field by more than 20 times. This is a huge success and an important step in order to build up our reputation and secure future growth in this relatively young domestic market.

A: The PV industry experienced a big boom till several years ago with a vastly increased demand for product testing and certification. As the supporting policies have changed we will certainly not see

such a “big thing” very soon again. But considering the sheer number of modules exported from China there is enormous potential for providing testing and inspection services specifically tailored to the requirements of large international buyers. Additionally we are extending our service portfolio to cover different PV applications, e.g. PV Energy Storage Systems. Also our PV Power Plant service will be further extended to address the requirements of non-technical parties to assess the involved investment risks.

SPOTLIGHT18

Turning crisis into advantage: Opportunities for food inspections

FOOD SERVICES

Interview with Jundong Chen General Manager, Food Services,

TÜV Rheinland Greater China

SPOTLIGHT 19

2014 2015Q: What were the breakthroughs and achievements in the food service business in 2014?

Q: What are the fields we will continue to cultivate or what are the new strategies for 2015?

Q: What was the trend of the entire business in 2014?

Brilliant Sales Growth

A: From the beginning of 2014 until now, sales of the food service business have grown significantly, higher than the targets, which was a pleasant indicator. Over the past year, we have been devoted to expanding testing capability and certification scope. In terms of testing capability, strategic deployment across the country was achieved with reference to the instructional strategy for food service development made previously. At the beginning of strategic planning, there were less than 100 certification items. Now, the scope of certification has expended to nearly 2,000 items to cover over 95% in the strategic planning made previously to form the effect of quantity change to quality change.

Good Relationship with Retailers

Promotion to retailers of all scales at home and abroad was the second breakthrough. In 2014, we continue to make contact with domestic and international small and medial retailers, such convenience store chains as Rainbow, 7-ELEVEN and Family Mart. Through in-depth contact and with the brand influence of TÜV Rheinland, we have established good cooperation relationships with many small and medial retailers, and the number is increasing. To us, this is a good start and an opportunity to acclimate valuable experiences.

Aggressive Government Cooperation

Government cooperation is the third breakthrough. In 2014, we aggressively tendered for government contracts in different parts of China. Although the chance of winning was not so high, we did achieved the penetration effect for the government to understand that TÜV Rheinland is capable of providing inspection and certification services for the food industry and has potential to excel such services. For example, the

Extending Capability to International Standard and Tendering for Contracts of Large International Retailers

A: Over 2014 our testing capability and certification standard have reached a new milestone, particularly for meeting domestic standard in both quantity and scope terms. In 2015, we will continue to extend our capability to meet international standards, including Germany, the EU, and Japan standards, so as to extend our technical capability from domestic standard to international standard and cultivate business from the domestic market to the international market. In addition, based on the cooperation experience with small and medium retailers in 2014, we are preparing to tender for contracts of international large retailers, such as Metro and China Resource Vanguard, so as to strive for cooperation opportunities. In 2015, we will continue to increase investments and reinforce cooperation with the government. The popularity and necessity of demand are the characteristics of the food inspection business. Aggressive support of local governments and huge financial support of the state are major indicators of food safety and our directions of hard work in the coming year.

From the Demand for Adequate to Eat to the Pursuit of Well to Eat

A: Inspection and certification are the main trends in the entire food industry at the moment. When people in China are getting increasingly wealthy, the increased exposure of food safety problems in Taiwan and across the world has stimulated the demand for food inspections and certifications. Simply, the demand for adequate to eat has evolved into the pursuit of well to eat, covering food quality and food safety. Take the cooking oil issue in Taiwan as an example, the issue will bring negative effect to the food inspection and certification business for the time being. As it is impossible to distinguish gutter oil by inspections, the issue will not increase sales in the inspection business. In addition, after the outbreak of food safety issues, people will buy related products less, and this will reduce the demand for shipping and inspection of small and medium enterprises. For the long run, however, big leap has been seen in overall business growth, particularly for the second-part inspection and third-party approval business.

The food industry is a business contested by inspection service providers, as shown in the movement of competitors. Nearly all inspection service providers have entered this industry, with increasing and ongoing investments. Meanwhile, giants of other industries also entered the food industry, such as Evergrande and Greentown, when these real estate giants entered the agricultural industry, when have invested tens of millions to build their own laboratories. Therefore, the entire market has high expectations on the food industry, or even the agricultural industry. Virtuous investments also promote food industry development, and it is a win-win situation.

construction of the Hainan Laboratory is a typical example of cooperation with the government. In the planning process, we began communication of the cooperation project and won the contract with our efforts and capabilities.

SPOTLIGHT20

Satisfying Local Customers through Localized Services

MOBILITY

Interview with Davis Li Vice President, Mobility, TÜV Rheinland Greater China

SPOTLIGHT 21

Satisfying Local Customers through Localized Services

2014 2015Q: What are the key breakthroughs and accomplishments in 2014?

Q: What are the key tasks and direction in 2015?

Q: What are the new trends that you see in 2014?

Rebuilding organization to provide local services

A: Since I took charge of Mobility in Greater China in March 2014, I've mainly worked to identify new paths during the familiarization process. The biggest change, or perhaps breakthrough, was the rebuilding and adjustments to internal structure. Two months ago, we moved from being product-centric to region-centric. Greater China covers a lot of geographic area and the conditions in each region are very different as well. A regional division for lines of business allowed more effective use of resources to provide local customers with more in-depth services. We are now divided into six regions; Northwest and Qingdao, Northern China, Eastern China, Central and Western China, Southern China and Taiwan.

Some feel that regional divisions will lead to everyone operating independently and impact on cooperation. I believe otherwise; every architecture has its strengths and weaknesses, and the silo mentality is a challenge that managers must solve. Regional division allows for full participation and support by the local management. It also enables an in-depth approach to local business development and customer relations management.

In 2014, we made a breakthrough in team organization for Greater China, which I hope will be maintained for the long-term. I believe that the sales team plays a very critical role within the entire business team. By visiting customers in person, our team gain better access to direct customer feedback and suggestions that we can then respond to and satisfy the customer's requirements. During this process, I also heard many customers asking TÜV

Developing diverse and innovative services

A: Apart from the two points mentioned above, we will make internal changes to the team organization to expand our regional operations. The sales and technical teams will be strengthened as well to win the trust of old and new customers. Regional teams will also use their local access to try and develop and maintain their regional market.

In addition, our team must think about going beyond the conventional homologation concept in aggressively developing ACT, ITS and used-car evaluations. Even as we maintain our solid lead in the traditional fields, we must be willing to be innovative and continue to explore new opportunities for development.

Expanding our services to cover the whole product life cycle

A: In our customer communications, we also found new business models and directions of development. The multiple market access certification service, for example, was an innovation for Mobility on the global level and also faced many challenges. We have won the support of the top management and head office. Greater China will hopefully take the lead in this development by guiding and coordinating the cooperation of other regional subsidiaries in actively making innovation and making a tangible breakthrough. Establishing this channel will greatly benefit the international expansion of auto industries in Greater China.

In addition, right now our role in the entire auto manufacturing and sales cycle consists mainly of testing, reports and as a certification agency. In the future, we can enter other links in this cycle to provide services such as preliminary market research, interpretation of legislative and regulatory amendments, and applying the technical requirements for market access to product design and development. Creating a whole new business model based on the traditional foundation of auto certification will be one of our development trends and what customers are looking for.

Rheinland to provide more localized services. Mobility was one of the first business units in the Greater China line of business to propose "localized services".

SPOTLIGHT22

Interview with Vincent Tan Vice President, Rail, TÜV Rheinland Greater China & Asia Pacific

A Fruitful Year of Many “Firsts”!

RAIL

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SPOTLIGHT 23

2014

2015

Q: What has been the key breakthrough in 2014?

Q: What are the areas we are betting on in 2015?

Q: What has been the key business trend in 2014 in the Greater China region?

Our services over the past few years have been expanded into independent safety assessment of rail signaling products, rail welding and consulting businesses. These services have brought us positive growth over the past number of years, and healthy profit in 2013. But in any business, competition is bound to come when there is money to be made. Therefore, we have to evolve by expanding our service scope, enhancing our competency organically and inorganically, and possessing foresight in predicting the services that will elevate us from the competition.

Now, with more qualified people onboard, our competency has expanded into mega rail project services such as (but not limited to) feasibility studies, project/program management, structural testing, Independent verification & validation (IVV) of entire projects, and operations & maintenance (O&M) staff training-cum-qualification programs through our railway academy. As well, we are offering services that will serve the rail export market, namely certification of high-speed trains.

Hence, in line with the developments mentioned above, we have definitely had a breakthrough in 2014. Here are some of our major achievements in 2014:

Certification of an entire Made-in–China high-speed train in accordance with European Standards. First in China!

IVV of Taiwan’s first Light Rail System

Rolling out of a TÜV Rheinland Rail Academy, with well-known operators/consultants such as SMRT and Keolis Group, amongst others

We are proud to say that we are the only foreign certification body to have been awarded CNAS qualification as an Inspection Body for rail-related signaling systems in China

A: For 2015, we will continue to follow up on the exciting trends mentioned above, with more emphasis on the following:

Enhancing our cooperation with agencies linked to the AIIB, China EXIM Bank, and China Development Bank for mega projects overseas

New tram/metro projects with need for competent O&M staff

Enhancing service quality for our existing key accounts, as competition will be more intense come 2015

A: More metro and tram projects are being approved by the Central Government, which will lead to a spike in demand for qualified O&M staff. This will be addressed by our newly created Rail Academy.

Premier Mr. Li KeQiang has been promoting China rail products whenever he is overseas. And with Chinese companies winning projects in Macedonia, Turkey, Laos, Argentina, and recently Boston USA, it sends a clear message to us. Thankfully, we have been fortunate enough to win China’s first certification contract for a high-speed train meant for export.

With China leading the $50 billion Asian Infrastructure Investment Bank (AIIB), it is imperative that we form an exclusive partnership with relevant agencies in China linked with AIIB for mega projects.

SPOTLIGHT24

Interview with Wei-Min Fang Vice President, Systems, TÜV Rheinland Greater China

Competitiveness = Impeccable Service Quality × Continual Innovation Value

SYSTEMS

SPOTLIGHT 25

2014

2015

Q: What were the breakthroughs in 2014?

Q: What are the new directions for development in 2015?

Q: What were the business trends in 2014 that excited you?

Q: To be specific, what innovative models are worthy of learning?

Q: Compared to competitors, what is the core competitiveness of the Management System Service Department of TÜV Rheinland?

A: In 2014 the supplier audit business of the Systems increased by nearly 10%, which was higher than expected. In addition, strong growth in the customization business was maintained. As a result, both business lines will bring nearly 20% growth to the Systems. In efficiency we captured good service quality. In customer operations and management, the innovative model we adopted enabled us to maintain the existing business framework in Greater China and gradually enhance regional independent operability. This was particularly so in new product development and implementation for the second-party audit and supplier audit business, and the effort to realize the central policy of all regions favored the accomplishment of system quality consistency and efficient service.

A: Maintaining innovation is still the main direction for development in 2015. Although “good wine needs no bush”, we still need more marketing support to spread things far and wide. We also need to understand the market and do more promotion while planning and promoting new products. That is to say, we need to break through self-isolated thinking by teaming up with more business lines. This will benefit us a lot, particularly with regard to competition with competitors. Our laboratory resources and the potential of other business can all provide customers with more comprehensive possibilities for cooperation and total solutions. This way, we can also win the recognition and appreciation of customers.

Of course, in the information era we are facing new challenges. For example, our automobile customers have more than one thousand sales/spare part supply/service/survey (4S) shops. Large-scale audits and the data generated will need immediate analysis and reporting. In addition, there is the CSR business, and many of CSR cases involve multinational cooperation for international projects. To meet these new demands, we will invest in new software implementation systems to further enhance market competitiveness.

A: When we cultivated the supplier audit business for the export “Assessed Supplier” of Alibaba in 2014, we witnessed the sales turnover change brought to big buyers by adjusting business management frameworks and processes. This allowed us to more clearly understand the need for quicker response to the market and strategic adjustment in the second-party audit business. Through good customer communication we captured the opportunity for the management upgrade of customers. In addition, through practical marketing we dug up more e-commerce customers. We believe that these can increase new sales.

Also, winning the trust and new yearly orders for the year from branded customers like Apple and Microsoft by following the tenet of “impeccable” service quality was what made me more proud. For this reason, I have full confidence in our team.

A:We tried an innovative customer management model for different regions in Greater China. In Shanghai, we tried to centralize the resources of nearly one hundred customers distributed in different trades to an appointed major customer manager. By inputting the status information of customers by trade, we facilitated this major customer manager’s control of current resources and customer conditions and formed a single communications window for customers. Besides making more aggressive communication with customers, this model enabled us to discern their in-depth demands. Such improvement thus made internal processes, such as quotation, scheduling, review, and collection smoother and more efficient. In sum, this innovative model has reduced customer communication cost and improved the consistency of service quality control to enhance the satisfaction of key customer and thereby further discover the potential demands of customers.

A: First, it is corporate culture. TÜV Rheinland prides itself on a magnanimous culture, particularly for the Systems. Many employees have rich corporate management experience. By emphasizing cultural identification and value, we have created a self-motivated environment. During management evaluation, besides focusing on figures, we place even more emphasis on employee opinions. In addition to recognizing and respecting their opinions, we maintain a fair reward and punishment system. In practice, we build a steady, solid and sustainable brand spirit through cultural construction.

Second, as the management of the Certification and Accreditation Administration of the People’s Republic of China is increasingly rigorous, we keep sharpening our

requirements of ourselves. Firstly, we don’t wheel and deal, but follow each and every management regulation and standard so that employees fully understand each protocol and control the supervisory risk. Next, by aggressively implementing such a work attitude and method, we enable customers to agree with us by making them understand the need for quality control in addition to a certificate. In fact, more and more enterprises have agreed with our view. This is crucial. We also hope to be the positive promoter of China’s accreditation system optimization.

SPOTLIGHT26

Interview with Sherin Lin Vice President, Training and Consulting, TÜV Rheinland Greater ChinaCapture the

Industrial Pulse and Follow the trend

TRAINING AND CONSULTING

SPOTLIGHT 27

2014

2015

Q:What were the breakthroughs and highlights of our Training and Consulting in 2014?

Q: Looking into 2015, what are the areas you will continue to cultivate and what are the new strategies?

Q: What were the business trends in 2014?

A:In 2014 we observed a few fast-growing industries. Some of these growing industries were at infancy and needed technical support, and some were rather more mature and needed service quality improvement. With many years of experience, we successfully established partnership with rather famous enterprises in these industries. After in-depth discussions with them, we tailored exclusive consultation projects for each of them. Besides providing them with satisfactory results, we made major breakthroughs in our business. Below are some successful cases I would like to share with everybody:

Auto dealers: A number of automakers chose us to service them. The service included after-sales technical service operation consultation for Jaguar Land Rover Public Ltd (JLR), after-sales service integrated management consultation for Audi AG (Audi), and dealer stocktaking consultation for Bayerische Motoren Werke AG (BMW). Take the JLR for example, although sales have grown significantly in China, they wish to further cultivate China’s auto market in the strategic term. In cooperation with JLR, we provided them with detailed operating procedures and standards for the staffing of after-sales personnel, shop equipment and tools, new vehicle management, shop operation, warranty repair and recall, and product survey in terms of three dimensions: quality improvement, efficiency enhancement, and professional image optimization. By combining with the features of JLR products, we provided the management and first-line personnel of JLR dealers with a standard action guide. As a result, we successfully helped JLR to improve quality, enhance efficiency, and optimize professional image. In addition, we raised the brand loyalty of JLR customers.

Electric vehicles: As everyone knows, new energy vehicles (NEV) have become the future trend of

A: As what I have said, based on the breakthroughs made in 2014, the program experience accumulated, communication with customers, and our integrated analysis of business trends, in the forthcoming year, 2015, we will focus on the following areas: auto dealer, electric vehicle, lean production, quality control, energy management, and corporate social responsibility.

A: Like the breakthroughs we made in 2014, the auto industry was still our focus of business growth. In addition, training and consultation service has gradually extended from traditional course training toward practical training and improvement consultation.

Take the EV for example, the NEV has become an inevitable trend when energy supplies are becoming depleted and pollution is getting worse.

vehicle development in the auto industry. Therefore, the need for related high-tech talents is increasing rapidly. Recognizing the resultant technical training heat, we began developing service energy in that area. At present, we are providing battery terminal installation training for BMW and Volkswagen China. Besides receiving official funding from Bundesministerium für Bildung und Forschung (BMBF), we have teamed up with Fraunhofer IFAM and Lucas-Nuelle Training Systems (LN) to build China’s first NEV worker safety and technology training facility at TÜV Rheinland Kunshan Auto Technology Training Center to provide total solutions for auto technology and personnel development.

Energy saving and emission reduction: In addition to a popular topic, it is responsible for the earth and the environment of every enterprise. As the applicant and administrator of the “Switch-Asia” Project: Financing Energy and Environmental Solutions (FEES) co-sponsored by the EU and Xian High-tech Industries Development Zone, we assisted provincial enterprises in overcoming the obstacles they have faced while implementing clean production and energy saving, so as to help Shanxi Province to step on the road to sustainable development. FEES is a four-year project from February 2014 to January 2018. It is estimated that a total of 180,000mt of standard coal and 396,000mt of CO2e will be saved and reduced. We are glad and honored to have the opportunity to be involved in such a meaningful program.

Therefore, the need for EV high-tech talents will continue to increase, and the EV technology training heat will be a natural, foreseeable trend.

In addition, as EV technology continues to advance, the application of high-voltage systems has been applied extensively, such as power cell and power management, electric driving systems, and DC/DC inverters. As these bring higher risks to EV operation, workers will need to receive relevant training to prevent electric shock hazards.

Also, a strong demand was also seen in our traditional strength: lean production training and consultation business. By building a simulated shop for lean production, we extended traditional course training to practical training to provide customers with experiential learning. By combining with the mature lean maturity assessment system, we expanded the scope of consultation service to continuously improve our strengths.

Plants’ Structural Safety

FEATURED SERVICE28

All-around, Modular Solution for the Effective Promotion of Factory Safety

A plant’s structural safety involves multiple factors. Therefore, it is essential to ensure and strictly control the quality through design and planning, administrative approval, geological survey, construction management, material inspection and procurement, construction quality inspection and relevant engineering tests and experiments, etc. Problems arising in any of the abovementioned stages may significantly influence the plant’s structural safety. Therefore, with regard to inspecting plants’ structural safety, it is not only vital to know design, materials, processes and quality control, but also to possess considerable experience in communicating with construction management parties and clients. As a trustworthy third party, we have always considered the pursuit of client satisfaction as our key goal, and thus have consistently offered practical solutions with strong operability based on project progress and practical problems. We help clients solve practical problems so that

they can build plants that satisfy the requirements of relevant regulations, standards and specifications.

Generally, at the plant design stage, clients without associated professional knowledge or technical capabilities may authorise our technical engineers to strictly scrutinise the design drawings, calculations and other technical documents provided by the designer to ensure compliance with relevant building design codes and standards. Our technical engineers then provide corresponding audit reports for the client. Based on the clients’ customised requirements, our technical engineers consider the design conditions and determine whether the design description and documents facilitate the subsequent action. At this stage, we can propose suggestions for design improvement and help the client and the construction party communicate and solve problems. This keeps the problems out of the construction stage and ultimately decreases the risks and costs caused by construction delays.

At the design stage, clients may request customisations such as ground bearing capacity, seismic, anti-typhoon, anti-corrosion, anti-explosion, dust prevention and sound insulation requirements, according to the planned purposes of their plants. In such a case, we assist the designer in systematically considering and addressing such requirements, making use of our technical forces and specialty engineering teams.

Regarding the materials and components (steel, concrete, etc.) selected for plant construction, clients trust us to inspect and verify them as per the construction design and quality standards to ensure that they fully satisfy the requirements of plant safety and standards. Our professional laboratories and testing equipment are used to strictly inspect the materials and components expected to undergo relevant materials, engineering and performance tests. This prevents defective materials and components from being introduced into the construction stage, thwarting

Electrical Safety Inspection

FEATURED SERVICE 29

The continuous occurrence of factory safety accidents such as the Bangladesh building collapse, the Kunshan plant explosion and plant collapses caused by typhoons or earthquakes has made factory safety a hot topic. Plant safety involves multiple factors at the management and technical levels. Thus, it is not enough for management to solve its own plant safety issues by relying on its technology and staff. External technical forces and resources must be introduced to decrease the interference of multiple interest-related factors such as contractors and materials and equipment suppliers. As an impartial third party, TÜV Rheinland’s Industrial Services has taken the lead in the industry by offering creative, systematic, modular factory safety solutions.

The role of electrical safety inspection in reducing electrical accidents cannot be ignored. However, countless personal injuries and property losses still result from ‘acceptable’ electrical construction quality, and they account for a considerable proportion of factory safety accidents. Electrical construction inspection for standardisation and consistency is another important service that we provide.

Another way we serve our clients is by verifying the following: that factory electricity supply and electrical design are consistent with standard requirements and intended applications, that the electrical elements and accessories selected by the clients conform with work load and safe use requirements and that the electrical construction processes are standardised and safe. We also verify that the construction quality of all circuits, electricity supply links and power distribution and supply equipment to ensure that the items traveling from incoming substation lines to power consumption equipment are subjected to electrical safety inspection.

structural safety drawbacks that can be difficult to resolve later in the process.

Regarding quality inspection during the construction process, we can supervise the entire process, or conduct irregular spot checks and set control points as per the quality control and inspection schemes. We perform specific individual inspections and tests at the quality control points that are not reproducible. We address the quality of concrete foundations, the pouring or installation of beams and columns, connection and welding of components, non-destructive testing, bolt connections, etc. by tailoring detailed quality control schemes to each client to ensure reliable project quality.

Compliance with electrical safety inspection can ensure that large-scale blackout and electrical failure do not occur, even when electrical circuits experience partial failures such as accidental grounding, short circuit and overload. In addition, it can also fully and effectively prevent personnel from accidentally contacting the live parts in the factory, guaranteeing equipment and personal safety. Compliance with electrical safety inspection can also ensure that electrical circuits do not negatively affect factory safety, even in the event of unexpected weather conditions such as thunder and lightning, such that production can continue smoothly. By comparing and verifying electrical elements, we can effectively prevent unacceptable elements and those with unmatched specifications from being introduced into the electrical circuits, thus improving the reliability of the operation.

Strict electrical safety inspection is key, as it efficiently identifies faulty elements, making replacement and maintenance efficient and convenient.

Safety in the Construction of Ventilation, Drainage, Gas Supply and Water Supply Pipes

Equipment Safety Inspection

As a factory’s arteries for safe and stable operation and production, ventilation, drainage, gas and water supply pipelines involved in safety-related accidents result in serious economic loss.

Our engineering team uses systematic and comprehensive inspection and detection methods to thoroughly test the construction processes, pipes and valves. For example, our team can perform pressure-tight, ultrasonic, penetration, radiographic, eddy current and magnetic particle testing for raw materials or pipes. In addition, we provide professional inspection and testing reports to avoid construction quality issues. Our timely intervention in the construction process can effectively protect clients against the huge losses inherent in the completion of unacceptable final projects.

Clients must also address whether a plant’s equipment such as hoists, shelving, conveying, transmission and processing machinery, electric tools and electrical equipment are safe. The experience and qualifications we have accumulated on many mechanical and electrical equipment inspection and certification projects based on machinery and low voltage directives have resulted in exceptional technical advantages in solving plant equipment safety problems.

According to the characteristics and risk points for different equipment types, we can systematically perform individual risk identifications, confirmations, assessments and evaluations. Based on our professional analyses of a client’s mechanical, electromechanical and electrical equipment, we can provide corresponding reports and detailed improvement plans. We cover not only the equipment, but also the working environment and equipment management within the plant. Our final objective is to effectively guarantee the safety of

field operation personnel in the plant and completely eradicate industrial accidents.

Our certified product laboratory supports the reliable and accurate testing and verification of equipment to evaluate its safety level and performance.

In addition to the safety of operation personnel in the plant, operation comfort is becoming increasingly important. By analysing field operation ergonomics and procedures, we can effectively

improve the operation comfort of field workers and reduce their fatigue.

As for production line or equipment control systems, we provide functional safety assessment and certification that helps the client improve this aspect to meet functional safety requirements. Regarding functional safety, whether the client’s control system requirements are related to hardware or software, we operate from a wealth of valuable project experience.

FEATURED SERVICE30

Factory Safety Services:

Anti-explosion Safety Inspection Safety-related Training and Consulting Services

The dust explosion in a plant in Kunshan not long ago has heightened the importance of anti-explosion safety. Currently, there are many fields with explosion hazards, including the power, petrochemical, energy, mining, military, metallurgic, food, medical, machining and architectural material industries.

The realisation of anti-explosion safety requires not only the input of resources and funds, but also the support of good technologies and hardware. Our ATEX Group, which focuses on providing the relevant clients with professional anti-explosion solutions, has accumulated valuable project implementation experience during its long-term engineering practices. We can provide consultation, inspection, detection and certification for anti-explosion products, and evaluate and inspect on-site anti-explosion conditions to achieve anti-explosion safety.

Given that plants lack safety management knowledge, and employees’ safety awareness urgently requires improvement, it is our purpose to provide services related to plant safety management, equipment safety, safe equipment operation, anti-explosion safety, electrical safety, operation protection, mechanical safety, etc. The training provided by our engineers, whose rich practical experience can improve the quality and capability of clients’ employees, offers potential benefits and reduces risk costs.

FEATURED SERVICE 31

Industries and clients

Automobile

Printing Building Electricity Energy

Transportation Aerospace ServicesManufacturing industry

Environmental protection

Factory planning

Plant structure

Electric safety

Equipment safety

Factory construction

Before factory being put into

operation

Design documents

Design document

review

Civil engineering

engineerSteel structure

engineerMaterial testing

engineerElectric

engineer

Technical requirements assessment

On-site inspection and

testing

Standard requirements

Regulatory requirements

Technical specification requirements

After factory being put into

operation

Anti-explosion safety

Functional safety

Integral safety assessment

Safety consulting

Safety training

Periodic factory detection

Factory modification

Factory demolition

Resource exploitation

Recreation facilitiesSports facilities

Warehouse logistics

Medical equipment

Electronic products

Stages

Items to be assessed

Scheme bases

Assessment methods

Composition of expert panel

For more information, please contact: leon.kuang@tuv.com

For more information, please contact: weikang.chen@tuv.com

FEATURED SERVICE32

The Sino-German electric vehicle (EV) charging program was kicked off in Beijing in July 2014. The program aims to set up charging facilities in both public and residential areas in China, providing the foundation for the future development of EV industry and the widespread adoption of EVs. TÜV Rheinland is the only certification body in this program.

Dr. Weikang Chen, Vice President of Commercial Products of TÜV Rheinland Greater China, noted, “One of the key points of this program is to establish a universal technical standard. TÜV Rheinland, a world-leading testing and inspection third party with over 140 years’ history, is equipped with a team of professionals and top capabilities in testing and certification of the EV charging station. In the Sino-German

program, we are charged with the task to develop and implement the standardization of charging station installation. This helps to effectively promote technological exchanges between the two countries as well as sustainable development of the EV industry. At the same time, TÜV Rheinland’s certification database can help EV manufacturers locate the information of certified suppliers, installation service providers and charging facilities installation, providing an excellent information platform for the industry players throughout the supply chain.”

As the only professional third party organization in the Asia-Pacific region with the ability to provide testing and certification services for the total production chain of the EV industry, we possess a wealth of

experience in safety testing and offers product lifecycle service to electric vehicle manufacturers and dealers, including testing and certification services for electrical safety and car battery systems in accordance with the latest international standards; third-party certification reports for key EV components; comprehensive and integrated management system certification along with customized audit services (including for supply chain, quality, process capability, and risk assessments for environmental and social responsibility aspects) for the automobile industry in line with international certification standards.

The Only Certification Body in Sino-German Electric Vehicle Charging Program

For more information, please contact: weikang.chen@tuv.com

For more information, please contact: ryan.hsiang@tuv.com

FEATURED SERVICE 33

TÜV Rheinland Participates in the Founding of the Asia-Pacific International License Developed and Certificated Center

The National Kaohsiung University of Applied Sciences (KUAS) partnered with TÜV Rheinland and CEO International Consultant Company to set up the 'Asia-Pacific International License Developed and Certificated Center.'

A contract signing and plaque unveiling ceremony between the three parties was held at the Han Hsien International Hotel on October 3. KUAS President Cheng-hong Yang, TÜV Rheinland Taiwan Chief Operating Officer Bodo Kretzschmar, General Manager Chi-ming Pan and guests cut the ribbons together and hoped that the new center will incubate new talent, help students find good employment and train the people that businesses are looking for.

The "Asia-Pacific International License Developed and Certificated Center" was proposed by the KUAS College of Management in 2013 and is the first certificated center to be set up at KUAS. The center is intended to make up for existing weaknesses in pre-service training and industry linkage. "CEO International Consultant Company" is responsible for planning of professional training and internship evaluation mechanisms. All of the courses at this new center must be verified by "TÜV Rheinland" to ensure that the training management system meets international quality standards. The three-way participation on technical training will reduce differences between workers and employers during training and employment, ensuring the quality of corporate talent.

According to the KUAS, the "Asia-Pacific International License Developed and Certificated Center" will in the future leverage university resources for corporate and on-campus recruitment, increasing the channels for talent recruitment. The seamless connection between professional skills and real-world market requirements will enhance international competitiveness.

For more information, please contact: phoebe.wong@tuv.com

Hong Kong Offers Japan Diamond PSE Certification Service

TÜV Rheinland Hong Kong Limited (TRHK) has been registered as Japan DENAN RCAB by Japanese authority METI on June 18th, 2014. Since then TRHK offers Japan Diamond PSE certification service.

Based on DENAN law Electrical Appliances and Materials (Category A) must obtain Japan Diamond PSE certification. TRHK offers Japan Diamond PSE certification service for the following four product categories:

Single-phase small power transformers and discharge lamp ballasts

Heating Appliances

Electric Motor-operated Appliances

AC Electrical Appliances

Applications of “Authorized Valid Copy” will be accepted, as long as the Japan Diamond PSE certificate is valid.

FEATURED SERVICE34

For more information, please contact: phoebe.wong@tuv.com

For more information, please contact:service-gc@tuv.com

As a result of increasing popularity and technological progress, the usage of wireless devices is growing continuously. Various types of wireless technology are now available, e.g. WiFi, Bluetooth, Zigbee, wireless keyboards, wireless mice, different types of wireless remote controls, etc. To ensure safety in public network and spectrum management and control, different countries have developed relevant norms to ensure the stable operation of devices and reduce mutual interference.

The type approval is a MUST for regulated RF equipment to be sold in Taiwan. Without such approval, the manufacturing, importing, selling, or public display of the equipment is forbidden. As a National

FEATURED SERVICE 35

Taiwan Got TAF Accreditation for NCC Certification Body of P0002

Communications Commission (NCC) certification body for radio and telecommunication equipment, TÜV Rheinland provides one-stop testing and certification services for local Taiwan low-power radio frequency devices, meeting all industry requirements for wireless telecommunications certification.

TÜV Rheinland Taiwan is accredited by the Taiwan Accreditation Foundation (TAF), and is approved by the National Communications Commission (NCC) for certifications in accordance with Low-power Radio-frequency Devices Technical Specifications (LP0002). Therefore, we can provide local testing and certification for low-power frequency device type approvals.

For more information, please contact: Roy.luo@tuv.com

In August, WeChat of Tencent officially announced that it had added new equipment functions to the WeChat public platform to support smart wearable device, and support for other hardware products will also be added. The first batch of products that have successfully passed conformity certification include: the Huawei TalkBand B1smart watch, the Codoon HB-B021 Bluetooth 4.0 smart bracelet 2, and the iHealth AM3 smart wristwatch from iHealth in Silicon Valley. The AM3 has become a hit in Europe and the Americas.

TÜV Rheinland launched the world’s first wearable device certification standard in July to support its rapid development. It is expected that many wearable devices will seamlessly fuse with the daily life of the consumer and TÜV Rheinland certifies the devices from safety, smart, and wearability aspects. By connecting wearables, such as smart watches and health bracelets, to the WeChat platform, users can significantly enhance their sociability. Wearable devices may even replace some functions that have been previously confined to the Smartphone, such as time, weather reports, health and exercise capacity monitoring, and even the smart home control center. Wearable devices can be directly connected to WeChat with Bluetooth and all data will be synced directly without the need for programs of any kind. Wearable devices of all brands can share the same WeChat platform. This platform can also promote healthy and sustainable development of the wearable device industry.

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TÜV Rheinland Greater China Enters the Wearable Device Market with WeChat

TÜV Rheinland, which has preciously launched the world’s first wearable device certification standard, thus became one of WeChat’s first batch of partners in equipment function testing and certification.

For more information, please contact: Roy.luo@tuv.com

For more information, please contact:Hicy.gao@tuv.com

TÜV Rheinland Group held a signing ceremony with CSR Corporation Limited (CSR), for a Strategic Cooperation Framework Agreement during InnoTrans 2014 in Berlin. Dr Thomas Aubel, Vice President of TÜV Rheinland Group, and Mr. Jun Wang, Vice President of CSR, signed the agreement for and on behalf of each party. Prof. h.c. Ralf Wilde, Ph.D., member of the Supervisory Board of TÜV Rheinland Group, and Mr. Chang Hong Zheng, President of CSR, both witnessed the exciting moment. In addition to marking another major breakthrough in the cooperation of both parties started in 2004, this framework agreement, symbolises the will to establish a long-lasting, full-scaled cooperation relationship between TÜV Rheinland, a global leading third party certification institute, and CSR, one of the world’s largest manufacturers of rolling stock. This also symbolizes both parties’ intention to become strategic partners in railway and mass transit at home and abroad.

“We have already provided CSR with a full set of testing, inspection, assessment, certification, training, and consulting services in the past. The framework agreement symbolises the further cooperation in between,” said Dr Thomas Aubel.

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TÜV Rheinland Signs a Framework Agreement on Strategic Cooperation with CSR

Chinese enterprises are concerned more about quality and safety and are making products more reliable than before. TÜV Rheinland is the most reliable partner enabling China to connect with the world.

According to Jun Wang, as a global leading third party certification institute, TÜV Rheinland is committed to the safety and quality of rail systems. In Europe, TÜV Rheinland has over 40 years of experience in rail services and is well acknowledged as an accreditation body for railways in European Union. It is the Notified Body for European Railway Interoperability Directive 2008/57/EC and Common Safety Management Assessment Body according to EC Common Safety Management Regulation 352/2009, Associated Partner of EISENBAHN-CERT (EBC), Expert Organization recognized by the French Ministry of Transport and French Federal Railway Administration, DAkkS accredited third-party inspection and certification body for rail systems. In China, TÜV Rheinland is approved by CNCA as the certification body, by AQSIQ as import & export product inspection body and accredited by CNAS as third-party testing laboratory, inspection body and certification body.

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Shanghai Opens Vacuum Cleaner ErP Performance Test Laboratory

Higher vacuum cleaner requirements from new EU directors

The EU has recently implemented a new regulation on ecodesign for vacuum cleaners to reduce electricity consumption by at least 20% by 2020. This regulation, 2013/666/EU, regarding the ecodesign requirements, adjusted the power indicators of vacuum cleaners and requested member states to convert the regulation into local regulations by 21 December 2015. According to the regulation, vacuum cleaners with power consumption exceeding 1600W are not allowed to import to the EU as from September and power consumption of vacuum cleaners will be reduced to 900W by 2017. Currently, the average power consumption of vacuum cleaners sold in the EU is 1800W. Therefore, the implementation of this new regulation for the ecodesign of vacuum cleaners suggests that many leading brands must pull their

Shanghai, 29 October 2014. TÜV Rheinland Shanghai, held the completion ceremony of its vacuum cleaner ErP performance test laboratory.

This new laboratory is the first in China to equip with turnkey performance test equipment from SLG to provide local customers with the most just-in-time and most accurate test services. Testing methods and procedures are highly consistent with that of EU inspection and testing organisation to ensure products tested to comply with relevant EU requirements can stand the strictest tests of the EU supervisory board, so as to reduce the uncertainty of market sampling check faced by products.

The equipment currently installed in the laboratory can fulfil all stage 1 testing requirements of EU regulations. Dust leak testing equipment will be introduced soon to enhance and optimize localised testing capabilities and inspection services.

vacuum cleaners from the shelf as scheduled by the regulation, given these products will not comply with the new requirements.

In addition, the regulation has set strict requirements for dust pick up on carpet and hard floor, dust re-emission, sound power level, hose durability, and operational motor lifetime.

Since the implementation of the first phase of 2013/666/EU, increasing manufacturers and exporters have faced tremendous pressure. When the second phase to be implemented in 2017, current technical requirements will face higher challenges. The implementation of the 2013/666/EU energy label will push manufacturers and exporters to another competition platform: high energy efficiency at lower cost. Based on own-country requirements, increasing multinational buyers have raised the requirements of performance tests on products exported to their countries.

For more information, please contact:Jianzhong.sang@tuv.com

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Raising localised inspection and testing capability with leading-edge SLG equipment

About EU ErP Test

China is a leading manufacturing and exporting country of vacuum cleaners. Therefore, the implementation of this new EU regulation has significant impact on China’s vacuum cleaner industry. To Chinese vacuum cleaner manufacturers and exporters, the lack of high-end testing equipment specified in the EU regulation is the main problem to vacuum cleaner performance inspection and testing organisations in China. In fact, the testing capability of inspection and testing organisations in China is inconsistent, and the reliability of their testing results cannot provide protection of any kind as they cannot pass the test of high-accuracy and high-reliability testing equipment.

As a leading organisation in vacuum cleaner testing, TÜV Rheinland decided to establish an ErP testing laboratory for vacuum cleaners exported to the EU, so as to provide Chinese customers with the highest class localised testing services.

Currently the most accurate reference cleaner is produced by the SLG which is capacitated to calibrate any reference cleaners and the precision and accuracy of its performance testing equipment make it the ultimate test field of vacuum cleaners.

The completion of this laboratory will bring local customers the world’s most advanced and highest class performance testing services for vacuum cleaners. From now on customers can use the most reliable, most advanced, and most precision localised testing equipment to test their products. Our professional engineering team will also maintain long-term technical exchange and cooperation with SLG experts to ensure the testing results are highly consistent with the EU market testing results, so as to provide the most accurate tests for energy labels.

The ErP test is a test defined by the EU to test the ecodesign requirements of energy-related products (ErP).

On 8 July 2013 the EU announced officially the COMMISSION REGULATION (EU) No 666/2013 implementing Directive 2009/125/EC of the European

Parliament and of the Council with regard to ecodesign requirements for vacuum cleaners. This regulation applies to electric mains-operated vacuum cleaners, including hybrid vacuum cleaners. This regulation does not apply to wet, wet and dry, battery operated, robot, industrial, or central vacuum cleaners, floor polishers, and outdoor vacuums.

According to the regulation, the ecodesign requirements for vacuum cleaners will be implemented in two stages:

From 1 September 2014, vacuum cleaners should comply with the following requirements:

annual energy consumption shall be less than 62.0 kWh/year,

rated input power shall be less than 1600 W,

dust pick up on carpet (dpuc ) shall be greater than or equal to 0.70. This limit shall not apply to hard floor vacuum cleaners,

dust pick up on hard floor (dpuhf ) shall be greater than or equal to 0.95. This limit shall not apply to carpet vacuum cleaners.

These limits shall not apply to water filter vacuum cleaners.

From 1 September 2017, vacuum cleaners should comply with the following requirements:

annual energy consumption shall be less than 43.0 kWh/year,

rated input power shall be less than 900W,

dust pick up on carpet (dpuc) shall be greater than or equal to 0.75. This limit shall not apply to hard floor vacuum cleaners,

dust pick up on hard floor (dpuhf) shall be greater than or equal to 0.98. This limit shall not apply to carpet vacuum cleaners,

dust re-emission shall be no more than 1.00 %,

sound power level shall be less than or equal to 80 dB(A),

the hose, if any, shall be durable so that it is still useable after 40,000 oscillations under strain,

operational motor lifetime shall be greater than or equal to 500 hours.

1872 1918 1919

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Germany raised a wave of second industrial revolution 140 years ago, when heavy industry gained great development and Rhein was surrounded by chimneys, with PM 2.5 estimated to be not lower than Beijing now. To improve boiler safety of steam equipment, Steam Boiler Supervision Association of Elberfeld and Barmen was established in 1872, DÜV ("Dampfkessel-Überwachungs- und Revisions-Vereine"), the past of TÜV, at that time came to existence.

TÜV in its young had already been very professional and rigorous with a strong sense of responsibility. It kept testing equipment strictly with German spirit and therefore

In 1918, DÜV extended its businesses to the fields of mining and energy. And its industrial businesses further expanded toward a higher end direction.

In 1919, DÜV tested carbonated beverage and an aerated water machine in representative of government organizations for the first time.

TÜV Rheinland’s Past and Present – Past

improved equipment safety greatly without involvement of national organizations. In 1897, there were 79 persons died from boiler explosion in Germany. The number was reduced to 35 persons 20 years later, while the number of equipment was more than doubled.

For the excellent performance in preventing accidents of steam equipment, DÜV won trusts and began to offer authentication services in other fields. In 1990, DÜV tested a vehicle and supervised driving license examination for the first time. Since then, the testing and authentication of automobiles and automotive parts have become TÜV Rheinland's major services.

1926 1936 1941 1970

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In 1926, DÜV launched the first chemical laboratory. The product testing service begins to enter a large-scale development era.

In 1970, TÜV Rheinland established her first branch overseas, and started the hard mode of its global journey.

In 1941, Konrad Zuse demonstrated the first computer in Berlin. We are a leading supplier of personal computer and laptop testing service.

In 1936, DÜV was renamed as TÜV (Technische Überwachungsvereine). In the 19th century, there were a total of 43 TÜV agencies distributed all over Germany. From Rheinlandischer DÜV to TÜV Köln, and then to TÜV Rheinland in 1962, Cologne-based TÜV Rheinland finished its gorgeous shift.

The reason TÜV Rheinland can win the trust of government, people and companies is that it is very reliable, and more important, TÜV Rheinland always keeps its "cost-efficient" and "professional" independent absolutely. Like twins who cannot see each other, "cost-efficient" and "professional" are closely bonded, know each other but cannot interfere each other. Clients (individual or company) pay for the testing services provided by TÜV Rheinland, however, the testing results are open but not tradable—like that no matter you are a good or a bad guy, Superman will show up in time and save your life in danger, but then you cannot bargain over whether Superman will send you home or a police station.

German spirit of concentration, persistence and cautiousness, Virgo attitude of being "censorious and captious" and let slip no details, high sense of responsibility and mission, and absolute independence of "cost-efficient" and "professional". It is because of those features that TÜV Rheinland can not only develop from a regional testing association into an international service group in the last 140 years, but grow into a giant in the field of safety authentication.

Zhuhai Gree Electric Appliances Inc.

Zhuhai Gree Electric Appliances Inc. was founded in 1991 and is currently the world’s largest air-conditioning company with R&D, production, and sales and service capabilities. Gree has worked with TÜV Rheinland since its first export order in 1994. The two companies have thus enjoyed 20 years of cooperation.

The Challenge Case 1

Case 2

The Solution

To enhance international recognition of products made in China

To enhance the market’s responsiveness to rising concerns over energy efficiency and environmental issues

ISQM TÜV-SQS International Service Quality Certification

S-Mark Certification

TÜV Rheinland provides comprehensive solutions in the areas of safety, functionality, efficiency, industrial service safety evaluation, product control assessment, and training and consulting, in addition to a wide range of other services. Recently, in response to rising concerns over energy conservation and environmental issues, TÜV Rhteinland has begun offering Chinese companies superior environmentally orientated certification services to ensure that their products enter the international marketplace with a clear competitive edge.

Gree Electric Appliances has over 300 test labs and is the largest and best-equipped company in China’s air-conditioning industry. Since 1992, Gree has invested heavily in the establishment of more than 20 test labs for the testing of central air-conditioning systems, thereby demonstrating its leadership in achieving global standards in this industry. The company’s testing precision exceeds national standards, and in 1999 it obtained national test lab certification. In 2000, it also achieved TÜV Rheinland certification.

Gree’s demonstration production line for its first split-type air-conditioner unit with R290 new refrigerant recently passed an on-site inspection carried out by the Sino-German expert group. This production line also obtained TÜV Rheinland safety certification, the most stringent certification in its class.

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The service provided includes:

Professionalism and service with care are the quintessence of our 20 years of cooperation with TÜV Rheinland.

Case 3

Gree decided many years ago to expand into the Argentine market, and it needed S-Mark certification to do so. After contacting many certification companies that were unable to help, Gree finally contacted TÜV Rheinland for a solution. Upon understanding the customer’s needs, TÜV Rheinland quickly assembled a team of experts and developed a comprehensive support service programme. In addition to providing a certification service and several other localised services, TÜV Rheinland assisted the company’s engineers by providing guidance and technical support in the R&D process. As a result, and also owing to its excellent product quality, Gree was able to penetrate the Argentine market. The provision of comprehensive service packages is one of the many strengths of TÜV Rheinland, and one that few of its competitors can match.

Xiao Biao

Minister of Science and Technology Management Department of Gree Electric Appliances Inc.

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The Solution Case 1

The Challenge

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Foton Motor Inc.FOTON is a large-scale enterprise with the most complete range of commercial vehicle types in China. In 2013, the brand value of FOTON was estimated to be in the region of 50.867 billion yuan, giving the company a No. 4 ranking in the automobile industry as a whole and No. 1 in the commercial vehicle field.

FOTON began cooperating with TÜV Rheinland at the beginning of 2005, and in the years since TÜV Rheinland has completed product certification for more than 100 of its vehicle models. Such certification has been key to FOTON’s success in promoting its products and gaining market share worldwide.

The service provided includes:

FOTON entered the overseas market in 2004, which made product certification a necessity.

To ensure that its products entered target markets on time, vehicle model certification items needed to be completed in timely fashion with limited resources.

Test items in the development of new products needed to be optimised to reduce expenses and time.

European Union ECE certification

Laboratory accreditation

Based on our rich experience of domestic product certification and deep understanding of European standards and regulations, we provided professional support in certification planning and regulation interpretation to FOTON, thereby helping its products to enter overseas markets successfully.

Because ABS braking tests for light trucks exported to Australia are very difficult to carry out, and the number of test sites conforming to testing requirements is limited, our team entered a government test site before dawn to work for 13 hours to ensure that all test items were completed on time.

In association with newly developed products intended for export to Iran, our professionals optimised the test items and adopted test data from vehicle models on the same certification platform to reduce the testing time and cut expenses by more than 90,000 yuan.

In early 2011, FOTON entrusted us to carry out a vehicle model certification test on its light trucks (BJ1079VDJE6-FP) exported to Australia. Because the ABS braking test item is risky, intense, time-consuming and expensive, and would thus determine whether the overall test could be completed on time, we carried out the ABS brake test at the test site of China’s Ministry of Transport in Tong County, now the Tongzhou District of Beijing. Owing to a lack of resources at the test site, our certification engineers and engineers from FOTON began preparing for the test and installing the ABS test equipment at 5:30 am on 10 May. At 6:20, the test site gates opened, and the engineers began carrying out the nerve-wracking test. To make full use of the site’s resources and ensure the test’s progress, the engineers continued working without cessation and did not even take a lunch break, having a simple box lunch on-site instead. After 13 hours of continuous work, they completed all of the test items by 8:00 pm, creating a record for the light trucks tested in a single day. Our engineers’ hard work and dedication reduced the certification testing period, cut costs and impressed the client with their highly responsible attitude and work spirit.

Case 2

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In August 2013, FOTON entrusted us to carry out the wide-body vehicle model certification of K1 products exported to Iran. The basic models of the company’s K1 products were duly certified, with the relevant certificates issued. The K1 wide-body vehicle model belongs to an expanded test item. Our engineers thus optimised the type test plan provided by FOTON to reduce the certification time and reduce the cost by more than 90,000 yuan. The client was greatly impressed with their precise understanding of the relevant technical regulations, rich experience of product certification planning and highly responsible spirit.

Over 140 years of experience, professional certification sincere service with objectivity and fairness. We have been cooperating with TÜV Rheinland for the past 10 years. Our impression of TÜV Rheinland is exactly what its brand culture: ‘Precisely right’.

Juncheng Yuan

Assistant Manager of Regulation and Homologation Department, FOTON

Autumn is harvest season, and also a season of thanksgiving and joy. We have had much to be thankful for this year, with 2014 marking the 25th anniversary of the Shanghai branch, 20th anniversary of the Guangdong branch and 10th anniversary of the Fujian branch. The enjoyable activities held the year have left us with unforgettable memories, and reached a climax with a series of client gatherings in the Greater China region.

Client Gatherings

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TECHNICAL EXPERTISE48

EU Tightens Parabens, CIT and MIT Restrictions under Cosmetic RegulationFurther to the banning of five parabens in cosmetic products earlier this year, the European Commission published Regulations (EU) No 1003/2014 and (EU) No 1004/2014 to lower the maximum concentration allowed for Propylparaben and Butylparaben and prohibit their use in specific products for children. The usage of Methylchloroisothiazolinone (CIT) and Methylisothiazolinone (MIT) from leave on products is further restricted.

These amendments follow the risk assessment by the Scientific Committee on Consumer Safety (SCCS), to limit the concentration of Propylparaben and Butylparaben from the current 0.4% (individual) and 0.8% (mixed with other esters), to a maximum of 0.14% when used individually or in mixture as preservative. The two parabens are also prohibited in leave-on cosmetic products designed for application on the nappy area of children below three years.

This year in April, the EU Cosmetic Regulation (EC) No 1223/2009 has been amended to prohibit the use of Isopropylparaben, Isobutylparaben, Phenylparaben, Benzylparaben and Pentylparaben in cosmetic products.

In addition, the Commission decided to restrict the mixture of Methylchloroisothiazolinone (CIT) and Methylisothiazolinone (MIT) in a ratio of 3:1 to be used in rinse-off products only, under a maximum concentration of 0.0015%.

New cosmetic products place on the market have to comply with this regulation from 16 April 2015. Non-compliant products circulating on the market must be withdrawn from 16 Oct 2015.

Remark: If there is any inconsistency between the English and Chinese version of this information, the English version shall prevail.

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EU amends Cosmetic Regulation to restrict 4 preservatives and a nano-UV filter

[a] Rinse-off hair products: 2.5% *[b] Leave-on hair products: 1.0% *[c] Leave-on face products: 0.5% *

[a] Rinse-off hair products: 5.0% *[b] Leave-on hair products: 3.0% *[c] Leave-on face products: 1.0% *

0.2 %, corresponding to 0.0024 % of silver;Not to be used in oral products and eye products

10 %; Not to be used in spraysOnly nanomaterials having the following characteristics are allowed: Median primary particle size > 80 nm; Purity ≥ 98 %; Uncoated

On 8 August 2014, the European Commission has published Regulation (EU) No 866/2014 amending the EU Cosmetic Regulation (EC) No 1223/2009 to include restrictions on four preservatives and a nano-UV filter.

Cetrimonium chloride, steartrimonium chloride and behentrimonium chloride are listed as preservatives allowed in Annex V. Entries are added in Annex III, which restricts the maximum concentrations of these three substances for use other than as a preservative in particular product types.

Mixture of citric acid (and) silver citrate may only be used up to concentration of 0.2% as preservative. Besides, tris-biphenyl triazine is allowed as UV filter up to 10%, including its nanomaterial form. The amendments will enter into force on 28 August 2014.

Key Summary of Regulation (EU) No 866/2014:

Chemical

Cetrimonium chlorideSteartrimonium chloride

Behentrimonium chloride

Citric acid (and)Silver citrate

Tris-biphenyl triazineTris-biphenyl triazine (nano)

UV filter

Preservative

For use other than as a preservative

For use other than as a preservative

Restriction Maximum concentration in ready for use preparation

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Smart Home Communications: TÜV Rheinland Hong Kong Sole Recipient of Several Accreditations from Bluetooth, KNX and ZigBee

According to IDC market research, the smart home market could reach US$51.7 billion by 2020. Although the concept has existed for a long time, the inclusion of different home appliances in the smart home environment means that a unified standard has yet to be introduced. As such, certification and testing remains a problem, though smart homes currently have some commonly-used communication technologies such as Bluetooth, KNX, ZigBee, etc. TÜV Rheinland Hong Kong is the only professional telecom testing laboratory with multiple accreditations from the major alliances of Bluetooth, KNX and ZigBee and can therefore assist manufacturers to enter the smart home market.

The applications of the smart home mainly include home entertainment, home care, security monitoring and smart home energy. The home automated network environment integrates network communication, sensor and monitoring systems to achieve safe and convenient functions. Different terminal devices such as security, lighting control and home environment monitoring are no longer a stand-alone operating system. Instead, communications can be exchanged and controlled between devices via mobiles or computers. With the continuous upgrading of some communications technology specifications in recent years, software and hardware manufacturers are becoming more active in planning smart home applications and services. Home automation is expected to be the next emerging market after wearable and portable devices.

Bluetooth (Low Energy) technology is also one of the top choices for home automation communications applications because it is supported by all smartphones, is characterized by stability and reliability, has low power consumption (Bluetooth core 4.0 Low Energy) and low cost, is globally recognized and can connect to Bluetooth-supported devices anywhere in the world. Bluetooth devices can serve as hubs for other Bluetooth smart devices

after the Bluetooth 4.1 standard is announced, expanding the range of Bluetooth home applications. With more than 10 years of Bluetooth testing and certification experience, TÜV Rheinland Hong Kong is the most comprehensive Bluetooth laboratory in the Greater China region and the only qualified Bluetooth Qualification Test Facility in Hong Kong able to provide radio frequency and compatibility testing for the newest specifications version 4.1. Bluetooth Quality Experts (BQE) at TÜV Rheinland can also help manufacturers obtain qualifications in the most economical and efficient manner, ranging from preliminary product development to product listing.

Since 2013, TÜV Rheinland signed a partnership agreement with the KNX Association to perform conformity testing on future KNX devices. TÜV Rheinland is not only the Accredited KNX Test Labs that are authorized to carry out the software testing of a KNX device but also the KNX "Associated Partners" which network, educate, share ideas and increase general awareness about the KNX Standard in the field of home and building automation. KNX is the only global standard for home and building control with a single, manufacturer independent design and commissioning tool (ETS). KNX is approved as different standards, include European Standard (CENELEC EN 50090 and CEN EN 13321-1), International Standard (ISO/IEC 14543-3), Chinese Standard (GB/T 20965), US Standard (ANSI/ASHRAE 135).

In terms of home automation application technology, ZigBee is a protocol built on IEEE 802.15.4 with wider application layers. In addition to being used for smart homes, it is also used in smart grids and smart buildings. In order to further expand the domain of the smart home market, ZigBee has announced the latest 1.2 home automation standard, creating an open and interactive wireless home control platform. ZigBee technology provides manufacturers with an optimized and reliable

TECHNICAL EXPERTISE 51

standardized wireless platform with low cost and low power consumption. TÜV Rheinland is the officially-appointed testing laboratory of ZigBee Alliances, involved in formulating all ZigBee’s testing, standards and procedures. TÜV Rheinland Hong Kong and branches in Asia (Korea, Japan, Taiwan and China), North America and Germany can also provide ZigBee Logo testing for products ranging from lower layer IEEE 802.15.4 radio conformance Protocol (ZCP) to the ZigBee application layer Public Profiles.

Each communications technology has its own advantages in the smart home. Each wired and wireless technology specification continues to be upgraded and integrated. Manufacturers must first grasp smart phone application know-how to gain quick access to the market. Selecting professional and experienced certification bodies can be very helpful in lowering R&D costs and gaining market opportunities.

CORPORATE SOCIAL RESPONSIBILITY52

Visiting the Disable Children

Supporting Lushan Renjia School

Visiting the Orphanage

Donation to Taiwan Fund for Children and Families

Beach Cleaning

On August 10th 2014, 57 adults and 21 children joined the beach cleaning activity called by TÜV Rheinland / CCIC (Qingdao) Co., Ltd. Our volunteers removed total 110kg of debris from 1km of coastline. The trash included construction materials, foam plastic box, glass pieces, plastic bottles and package, etc. The recyclable debris have been sorted and centralized treated.

Our colleagues in Chengdu office visited Beidouxing Disabled Children School on July 25th. We donated two special-made wall toys to them and acted as volunteers, companied them and gained basic knowledge from their teachers. Hereafter, we will continuously pay attention and support this school.

We visited an orphanage in Chongqing on Sep. 20th. In addition to donating some clothes and food, our colleagues also spent some time with the kids playing games.

TÜV Rheinland Taiwan initiated a goods donation which helped to connect our colleagues with Taiwan Fund for Children and Families. Overall, we have collected 10 boxes of donation goods and have been delivered to the foundation, which has then distributed to disadvantaged children and low-income families on September 15 and 18.A simple action of donating our excessive household items to nonprofit organizations not only utilizes the goods to those in needs, but also saves the planet in a way through reused items. The nature of such activity is certainly meaningful to the donors while, at the same time, grateful by the receivers.

Colleagues in Chengdu and Chongqing office and KA clients visited Lushan Renjia School on Aug.23rd. We paid visits to school students’ families and donated books and sporting goods to them. Hereafter, we will continuously pay attention and support this school.

GLOBAL NEWS FLASH 53

TÜV Rheinland Joined the Connected Lighting Alliance

TÜV Rheinland Introduces EN 1090 Certification Services to Help North American Market Comply With Construction Products Regulation No. 305/2011

Germany

OpenSky Expands IT Infrastructure and Cybersecurity Services

ENERGY STAR Scope of TÜV Rheinland Japan Expanded to Include Data Center Storage

UK

USA

Japan

TÜV Rheinland has joined The Connected Lighting Alliance as an associate member to promote and stimulate the market adoption of wireless lighting solutions by supporting open standards.

In order to benefit the users and grow the market, TÜV Rheinland strives towards interoperable lighting products. For this reason TÜV Rheinland endorses ZigBee Light Link as open standard for residential wireless lighting solutions and is currently working on requirements for wireless connectivity for indoor professional lighting applications.

TÜV Rheinland is the only international Service Provider offering ZigBee services in different locations all over the world such as Europe, USA, India, Taiwan, Hong Kong, Korea and Japan. TÜV Rheinland can provide a one-stop-shop for certification services as part of its drive to deliver a positive contribution to a fully interoperable wireless lighting future.

TÜV Rheinland has introduced the EN 1090 certification services to the North American construction professionals doing business in the European Union (EU). This is in conjunction with the change in the Construction Products Regulation that, effective July 1, 2014, mandates the CE marking of fabricated steel and aluminum structures in accordance with the EN 1090 standard, titled Execution of Steel Structures and Aluminum Structures Parts 1 and 2.

In addition to assisting the construction professionals with CE marking of products, TÜV Rheinland can now help them achieve the mandatory EN 1090 certification, a pre-requisite for the CE mark.

OpenSky, an IT consulting firm focused on securing information assets and transforming IT infrastructure, has announced the opening of its first regional office in the United Kingdom. A TÜV Rheinland Company, OpenSky provides access to a global network of resources. The new office, located in Leatherhead, England, is part of an international strategy that will enable OpenSky to better serve its clients by providing local experts to solve complex IT challenges.

OpenSky has completed over 750 IT projects to help major enterprises, many on the Fortune 500 list, find solutions for their most pressing challenges. Through a unique, vendor-independent perspective, OpenSky’s team of seasoned professionals focus on delivering solutions that are tailored to the client’s specific maturity and IT environment.

TÜV Rheinland Technology Center in Yokohama is the first accredited laboratory for this category in Japan. With this expansion of scope, TÜV Rheinland Japan can now offer wide range of product testing and certification for ENEGY STAR program, including:

Data Center Storage

Audio/Video Equipment

Battery Charging Systems

Computers

Displays

Enterprise Servers

Imaging Equipment

Small Network Equipment

Telephony