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Faulty Water Heater Exhaust Pipes: Sakura and Zhuangtoubei Implicated
pine Webmaster of Pineapple
2014/11/06 03:39
508 topics published
Liberty Times, November 6, 2014
Reporters: Wen Yude, Huang Peijun, Li Zhongxian, Qiu Shaowen / Comprehensive Report

The New Taipei City Investigation Office of the Investigation Bureau discovered that "Tong Ling Industrial Company," a major supplier of water heater accessories, had been mixing substandard 202 stainless steel exhaust pipes with the nationally required 304 stainless steel exhaust pipes before shipping them to water heater manufacturers. These inferior pipes are prone to rust and perforation when exposed to heat, increasing the risk of carbon monoxide leaks and endangering public safety. Since 2005, over 670,000 such pipes have been sold, generating illegal profits exceeding NT$200 million.

**Using 202 Stainless Steel Instead of 304—Prone to Rust and Gas Leaks**

Yesterday, the Investigation Bureau conducted raids and seized over 20,000 defective exhaust pipes. The unscrupulous supplier had business dealings with manufacturers of all sizes across the country. It is understood that well-known brands such as "Sakura" and "Chuang Tou Bei" were also affected.

According to the Bureau of Standards, Metrology, and Inspection (BSMI), water heater exhaust pipes must use 304 stainless steel. However, Tong Ling was reported for supplying inferior pipes to manufacturers. The New Taipei City Investigation Office secretly purchased both types of pipes for testing and found that compared to 304 stainless steel, the 202 variant not only had a lower nickel content (4.5% vs. 9%) and 1% less chromium but also contained 6% manganese to reduce costs, thereby earning illegal profits.

The Investigation Office stated that the substandard pipes, containing manganese, appeared darker in color, making it difficult for consumers to distinguish them visually. Since the installation prices were the same, it was hard to detect the inferior products. Over time, these pipes could rust and perforate due to moisture and prolonged heat exposure, increasing the risk of carbon monoxide leaks.

Yesterday morning, the Investigation Office conducted simultaneous raids at the company's headquarters in Tucheng and its production facility in Taichung. General Manager Zhang Jinfa, Manager Zhang Minde (brothers), and their sister Zhang Caiyun, who served as the accountant, were brought in for questioning.

**Tong Ling’s Supply Chain Spans Large and Small Manufacturers**

Investigators found that Tong Ling labeled exhaust pipes shipped to the major water heater manufacturer "Rinnai" with blue tags and yellow stickers on the packaging. In contrast, the substandard pipes supplied to other manufacturers bore red labels and lacked yellow stickers. The company’s clients ranged from large water heater manufacturers to small stove retailers.

Investigators learned that Tong Ling had previously been caught supplying defective pipes to "Rinnai," which independently tested and exposed the issue. Subsequently, Tong Ling began using different labels and packaging to distinguish the products.

**Using Colors to Differentiate Genuine and Substandard Products**

During questioning, the Zhang brothers admitted that while the BSMI had mandated the use of 304 stainless steel for exhaust pipes since 2005, enforcement only became strict after 2012. The company sold the pipes at prices ranging from NT$200 to NT$500 each, totaling over 670,000 units since 2005 and more than 80,000 since 2012, with illegal profits exceeding NT$200 million.

The Investigation Office stated that Tong Ling’s actions violated the "Installation Standards for Gas Water Heaters and Their Piping" under the Fire Services Act, which requires the use of 304 stainless steel for exhaust pipes. The company faces fines ranging from NT$10,000 to NT$50,000, with potential continuous penalties or suspension of operations if corrections are not made. The Zhang brothers were charged with fraud following the investigation.

Reporters attempted to contact Sakura’s Taichung headquarters and Chuang Tou Bei’s Taipei-registered office and customer service lines last night but received no response.Source: https:/ / tw. news. yahoo. com/ % E……8% AD% E6% A7% 8D- 221049990. html
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