**Shanghai**: Danfoss Group displayed its electrohydraulic steering solutions at Bauma China, announcing plans for expansion with increased investments in technology. With new production facilities in Nanjing and upcoming innovations in energy-efficient technologies, the company aims to support China’s economic transition towards a greener future.
Visitors engaged with Danfoss Group’s electrohydraulic steering solutions at the company’s exhibition area during the Bauma China engineering expo held in Shanghai on 26 November. Danfoss, a leading Danish technology and engineering conglomerate headquartered in Nordborg, Denmark, has announced plans to further enhance its operations in China, focusing on increased investment and technology applications in the coming years.
The company will commence mass production of insulated gate bipolar transistor modules and electric and hybrid powertrain systems later this year at its facility located in Nanjing, Jiangsu province. This initiative follows the recent opening of an upgraded application development centre in Suzhou earlier in January. The Suzhou centre, designed to be at the forefront of research and testing, is dedicated to energy-efficient technologies, including variable frequency drives and electrification solutions. This development aims to bolster Danfoss’ support for partners across various industries, including marine, textile, and chemicals.
Kim Fausing, president and CEO of Danfoss, remarked on the company’s robust growth in multiple sectors, highlighting the significance of its data centre, semiconductor, marine and offshore businesses, alongside battery energy storage systems. Fausing noted, “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,” indicating a positive outlook for the company’s operations in China.
Supporting this growth trajectory, data from China’s Ministry of Industry and Information Technology indicated that in 2024, the country’s global market share in shipbuilding completion volume, new orders, and order backlog reached 55.7%, 74.1%, and 63.1% respectively. Furthermore, there has been a notable increase in the construction of data infrastructure, with the National Data Administration reporting that the number of data centre racks in use surpassed 2.11 million, reflecting more than a 100% increase year-on-year by the end of the third quarter of the previous year.
As China pivots towards refurbishment and retrofitting rather than new construction, Fausing remarked that these adaptations have become crucial development areas, unlocking substantial opportunities for Danfoss’s energy-efficient technologies. To align with these growth objectives, the company is on track to complete the construction of its second campus in Haiyan, Zhejiang province, later this year. Spanning 135,000 square meters, this new production site is anticipated to be among the largest in Danfoss’ history and is strategically aimed at harnessing the potential offered by China’s transition to a greener, low-carbon economy.
Fausing highlighted the shifting competitive landscape in China, stating, “With growing competition from local companies, the market momentum is already different in China. Only companies with strong agility and adaptability will win.” He emphasised that Danfoss views China as its second home market, positing it as an essential focus rather than merely an advantageous one.
Bai Ming, a member of the Academic Degree Committee at the Chinese Academy of International Trade and Economic Cooperation in Beijing, noted that China’s drive towards innovation-led strategies and consumption initiatives is creating strong momentum for the economic transition, potentially fostering global economic stability and new growth avenues for multinational corporations.
In light of the recent measures to stimulate foreign investment, which included the removal of restrictions on foreign investment in the manufacturing sector last year and the introduction of an action plan in February, China is increasingly becoming an attractive market for overseas investors. This plan aims to support pilot regions in advancing opening-up policies across various sectors, including telecommunications, biotechnology, and foreign-owned hospitals.
Source: Noah Wire Services
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