Johnson Controls to start up 2nd global HQ in June

An employee at the Johnson Controls Inc and Saft Groupe SA joint venture Lithium-ion battery factory for electric and hybrid cars, assembles a battery on the production line in Nersac, France. [Photo/Agencies]

US-based manufacturer will use it as springboard for the digital market

Johnson Controls Inc, the US-based manufacturer of energy efficient products, control systems and batteries, will start operations at its second global headquarters in Shanghai this month.

It will use the opening as a springboard to gearing up its presence in the Chinese and regional market.

The new headquarters, with capacity for 1,200-1,600 employees, will coordinate its business within the Asia-Pacific region, as well as develop new markets and segments through further diversification.

Clay Nesler, vice-president of global energy and sustainability at Johnson Controls, said the company would focus on developing digital and internet-connected building control systems and solutions, sustainable building materials and air conditioners, as well as providing more smart city-related products to the Chinese market.

He said cities－including Suzhou, Wuhan and Wuxi－would be priority markets for the company to expand its presence in the field of green buildings.

China has already set goals to become the world's biggest market, including the goal of 30 percent green buildings for new construction in 2020.

To achieve that, the country will focus on sustainable development strategies for urbanization, environment and industrialization sectors, according to a document released by the National Development and Reform Commission in 2013.

"As buildings account for a large amount of energy consumption globally, this presents a significant opportunity to make sound environmental improvements that are also good business decisions, particularly in a high-growth economy like China," Nesler said.

Nesler said China's fast-growing 4G telecom networks and the Made in China 2025 strategy would also lead to improvements in resource efficiency and productivity from the long-term perspective.

He said the potential benefits could be even greater if they are extended to all stages of the value chain－to suppliers, manufacturers and customers, as well as global markets.

The company's building technologies and solutions business has more than 5,000 employees in China. It operates 39 offices and three manufacturing centers throughout the country.

"The technologies of new green buildings and smart-city solutions can effectively test and identify the sources of pollution or resource inefficiency in cities, and could help governments create adequate measures to tackle the issues, such as high power and maintenance costs," said Chai Yongzhi, a researcher at the Chinese Academy of Science and Technology for Development in Beijing.