Danish company Danfoss optimistic about China's long-term growth
With China entering a new era of green and innovation-led growth, Danish technology and engineering conglomerate Danfoss Group is optimistic about China's long-term growth potential and sees abundant opportunities arising from the country's focus on the digital economy and low-carbon transformation, according to a senior executive.
Stephane Nassau, president for global sales at Danfoss's Climate Solutions division, said the company will actively participate in the development of energy-efficient solutions across various industries, including data centers, energy storage, district heating networks and marine businesses. China's relentless push towards urbanization and digital transformation has resulted in a burgeoning demand for data centers.
Danfoss is keen to provide energy-efficient technologies that are integral to powering these facilities, said Nassau.
"Our solutions are designed to enhance operational efficiency and are connected to district energy systems, exemplifying our approach to integrated sustainability," he said, adding that the company will persist in investing in research and development at its laboratory in Tianjin, which commenced operations in 2023.
Nassau said that the construction of more data centers is anticipated as manufacturing companies across diverse industries expand their digital infrastructure. Danfoss's solutions are crucial in this area, offering innovative technologies that optimize energy use and reduce emissions. This aligns with global decarbonization goals and China's dual-carbon goals.
China has committed to the dual carbon goals of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060.
In the semiconductor and new energy sectors, Nassau said that Danfoss will introduce its latest technologies, including advanced compressor designs that utilize environmentally friendly refrigerants. These innovations are not only designed and produced within China but are also exported globally, demonstrating the country's role as a critical hub in Danfoss's international supply chain.
Highlighting that Danfoss's commitment to China is unwavering, Nassau mentioned that Danfoss also ships products such as refrigerant leak detection sensors and variable speed scroll compressors manufactured by its plants in China to many European countries and economies in the Asia-Pacific region.
In addition to building an IGBT (insulated-gate bipolar transistor) semiconductor power module plant in Nanjing, Jiangsu province, with an investment of 100 million euros ($107 million), Danfoss will launch construction of the second phase of its largest manufacturing and innovation base in Haiyan, Zhejiang province later this month.
Upon completion, this expansion will bolster Danfoss operations not only in China but also on a global scale.
Nassau, a French national, voiced confidence that the visa-free policy for a number of European countries, including France and Germany, will encourage more Europeans to travel to China, hence more business exchanges.
