Thomas Koniordos, president of Danfoss China, says Chinese philosopher Xun Zi's thoughts give him inspiration in running the company. [Provided to China Daily]

President of energy-efficient solutions provider looks to ancient Chinese philosopher for guidance

Thomas Koniordos is embracing the thoughts of ancient Chinese philosopher Xun Zi - tapping new sources of supply and reducing consumption - to nurture Danfoss China, a unit of the Denmark-based Danfoss Group.

"As a leader of an industrial group providing energy-efficient solutions, I am deeply affected by this thought and it has new connotations for me, that is developing renewable resources as well as making the best use of existing energy-efficient technologies and solutions," says Koniordos, president of Danfoss China.

The multinational company is on target to make its Chinese business the largest revenue driver for the group by 2015.

The philosophy he learned when he came to China in 2009 can be seen down to the nuts and bolts of Danfoss China, which develops and produces energy-efficient components for heaters, air conditioners, renewable energy and other various products.

The same ideas are also reflected in China's 12th Five-Year Plan (2011-2015), which addresses the importance of energy-saving measures.

"China has attached great importance to building up an energy-saving and environmentally friendly society, which will encourage enterprises to focus on energy conservation and emission reduction. Thus, the market of energy efficiency is endowed with great potential here," Koniordos says.

He forecasts Danfoss China's revenue to increase to 5 billion yuan ($790 million, 589 million euros) this year up from last year's 4.8 billion yuan. Revenue from its five business divisions last year has already increased between 20 percent and 45 percent when compared with 2009. He says the company is capitalizing on the growing market instead of focusing on taking shares from rivals.

Government initiatives have been facilitating its development in the energy-saving industry.

In November 2009, the central government announced its intention to reduce the intensity of carbon dioxide emissions by 40-45 percent by 2020 compared with 2005 levels.

Tax breaks for renewable-energy companies have been introduced as well as increased prices for electricity produced from cleaner fuels.

Koniordos says China is the third-largest market behind Germany and the United States in terms of revenue for Danfoss Group, which operates in 19 other countries. The target is to make China No 1 by 2015.

His confidence is fostered by the quality of his employees. He says as a leader of Danfoss China, he enjoys the benefits brought by the rich resources of local talent.

"The high spirit of Chinese people is valuable resource for our company. As Xun Zi's philosophy indicates, I should make full use of this resource, which means attracting more talent to work in our company and bring the potential of our employees to full play," he says.

To achieve this goal, Koniordos introduced an employee development plan, under which goals will be set for every employee to enhance his or her competitiveness. Koniordos also created global training programs that give employees a chance to work in overseas branches. This program is also used as a tool to attract fresh graduates.

After implementing these plans, the employee turnover rate has declined to the lowest in the group. Danfoss China has grown into a 4,000-strong team and is the second largest behind Denmark.

Koniordos, who was born in Greece and grew up in Germany, understands the importance of localization. "It is more than 'Do as the Romans do'. As a foreign company conducting business here in China, you should adjust your strategy according to the local market while keep your own characteristics," he says.

To make it fully localized, Danfoss plans to build more facilities in China to offer its clients products that were created - from start to finish - in China.

Koniordos has noticed two major differences between the Chinese and the European markets. "The first is the speed of making decisions. Generally speaking, in Europe, people will only make decisions after careful consideration. While here in China, because the development of the whole society is so fast, people cannot wait to weigh all the pros and cons, and make decisions very fast," he says.

The other difference, he says, is that the Chinese market has its own special needs compared with the European market. For instance, in terms of the solar energy market, which has huge potential here, the Chinese government is promoting large-scaled solar energy producing equipment. While in Europe, the government attaches more importance to household items.

"We should make equipment according to the different needs. That's also why we set up own research and development center here in China," he says.

Koniordos also notices there are differences in leading the employees.

"For instance, when have meetings, the German people will follow the original procedure strictly, which is time-saving, while for Chinese, they will usually have a carefree discussion. And although this is more time-consuming, it is more likely to produce some innovative solutions. As a leader, you should control the time," he says.

His ambition can be seen in his determination to improve Danfoss China's factories to become world-class manufacturing centers. "The days when China was always regarded as the world's factory because of its cheap labor have gone, and now the competition here is more of the talent and advanced technologies," Koniordos says.

Despite concerns of introducing Danfoss' patented technology, he has shared some of the more advanced ideas from Denmark with China. But his trust remains, because Danfoss China recently set up a new research and development laboratory in Wuqing, Tianjin, and is planning to expand its production line in Haiyan, Zhejiang province, in the near future.

He also aims to expand Danfoss' business in all sectors. "Unlike many foreign companies, which mainly focus on developing the high-end market, we noticed that there is a huge demand in the mid- and low-end market in China. We are also planning to tap the potential in these areas."

He says that although most of its customers are supermarkets and factories, their products will be available to all since the Chinese government is promoting energy-saving heating solutions in Chinese households.

Koniordos keeps the end goals in mind for Danfoss China, much like his favorite hobby - sailing. The sport takes hard work, but the commitment usually pays off.

"Although I rarely sail in a real sense in China, I also enjoy much excitement and broad vision when I 'sail' in the Chinese business 'sea'," he says.