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Danfoss to scale up investment, technology implementation

Danish conglomerate to expand business in a number of sectors

By ZHONG NAN | China Daily | Updated: 2025-04-07 00:00
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With China creating favorable conditions to accelerate new industrialization, green growth and digital transformation, Danfoss Group, the Danish technology and engineering conglomerate, will further scale up its presence in both investment and technology implementation in China this year and beyond.

The Nordborg, Denmark-headquartered company will start mass production later this year at its campus in Nanjing, Jiangsu province, producing insulated gate bipolar transistor modules and electric and hybrid power train systems.

This follows the launch in January of its newly upgraded application development center in Suzhou, Jiangsu. Equipped with advanced research and testing facilities, the center focuses on energy-efficient technologies, such as variable frequency drives and electrification solutions, to better support Danfoss' partners in marine, textile, chemical and other industries.

Collaborative work at the center is also expected to drive innovation and contribute to the company's global research and development network.

As China embarks on a new era of green and innovation-driven development, Kim Fausing, president and CEO of Danfoss, noted that the company has experienced robust growth across a variety of areas, such as its data center, semiconductor, marine and offshore businesses, as well as its battery energy storage systems.

For example, its data center business surged 70 percent year-on-year, while its marine and offshore business grew by 29 percent on a yearly basis in China in 2024.

"These are all sectors that have a major role to play in China's pursuit of high-quality development, and we are confident that our growth in these high potential verticals will continue to expand in 2025 and years ahead," said Fausing.

Industry data support this momentum. In 2024, China's shipbuilding completion volume, new order volume and order backlog volume accounted for 55.7 percent, 74.1 percent and 63.1 percent of the global market share, respectively, data from the Ministry of Industry and Information Technology showed.

China also saw a surge in the construction of data infrastructure in 2024. By the end of the third quarter of last year, the total number of data center racks in use exceeded 2.11 million, a year-on-year increase of more than 100 percent, according to information released by the National Data Administration in January.

While China transitions from the new construction market to focus on refurbishment and retrofitting, Fausing said building retrofits and large-scale equipment upgrades have become key development priorities in the country, creating significant opportunities for the group's energy-efficient technologies.

To reach its growth goals in China, the construction of Danfoss' second campus in Haiyan, Zhejiang province, will be completed later this year. Covering an area of 135,000 square meters, the new campus will be one of the biggest production sites in the group's history. It will be used to capture the growth potential unleashed by China's transition to a green, low-carbon economy.

"With growing competition from local companies, the market momentum is already different in China. Only companies with strong agility and adaptability will win," he said, adding that China, regarded by Danfoss as its second home market, is a must-have and not a nice-to-have market.

Emphasizing that China is not only a vital market, but also a strategic hub for innovation and talent, Fausing said that Danfoss will continue to invest in innovation and talent development in the country, as these efforts not only support its operations in China, but also contribute significantly to its global competitiveness.

Bai Ming, a member of the Academic Degree Committee at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said that with innovation-driven strategies and consumption stimulus moving to the forefront, China's economic transition is gaining strong momentum. These developments are poised to enhance global economic stability and create new growth opportunities for multinational corporations.

Under such circumstances, overseas investors are increasingly focusing on digital solutions, supply chain optimization, high-end manufacturing, customized innovation and green businesses in the Chinese market, said Bai.

After removing all restrictions on foreign investment in the manufacturing sector last year, China issued the action plan in February, aiming to stabilize foreign investment this year. As part of the plan, the country will support pilot regions in implementing opening-up policies in sectors such as telecommunications, biotechnology and foreign-owned hospitals.

 

Visitors experience Danfoss electrohydraulic steering solutions at its exhibition area during Bauma China, an engineering expo, in Shanghai on Nov 26. CHEN HAOMING/XINHUA

 

 

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