The construction industry is on the cusp of a green revolution, and Danfoss Group, the Danish technology and engineering conglomerate, is at the forefront of this transformation. With China’s commitment to accelerating new industrialization, green growth, and digital transformation, Danfoss is scaling up its presence in the country, both in investment and technology implementation. This strategic move is not just about capitalizing on market opportunities; it’s about driving innovation and sustainability in construction and beyond.
Danfoss’s ambitious plans include the commencement of mass production later this year at its Nanjing campus in Jiangsu province. The facility will produce insulated gate bipolar transistor modules and electric and hybrid power train systems, aligning with China’s push for green technologies. This initiative follows the January launch of Danfoss’s upgraded application development center in Suzhou, Jiangsu. Equipped with advanced research and testing facilities, the center is dedicated to energy-efficient technologies, including variable frequency drives and electrification solutions. This focus on innovation is set to support Danfoss’s partners across various industries, from marine and textile to chemical, fostering a collaborative environment that drives global research and development.
Kim Fausing, president and CEO of Danfoss, highlighted the company’s robust growth in key sectors such as data centers, semiconductors, marine and offshore businesses, and battery energy storage systems. For instance, Danfoss’s data center business surged by 70 percent year-on-year, while its marine and offshore business grew by 29 percent in China in 2024. Fausing emphasized that these sectors are pivotal to China’s pursuit of high-quality development, and he is confident that this growth trajectory will continue into 2025 and beyond. “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,” Fausing said.
China’s dominance in the global shipbuilding market, with a 55.7 percent share in completion volume, 74.1 percent in new order volume, and 63.1 percent in order backlog volume, underscores the strategic importance of Danfoss’s investments. Additionally, the country’s rapid construction of data infrastructure, with a year-on-year increase of over 100 percent in data center racks, highlights the growing demand for energy-efficient solutions. As China shifts from new construction to refurbishment and retrofitting, Danfoss’s energy-efficient technologies are poised to play a crucial role. Fausing noted, “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 capture this growth potential, Danfoss is constructing its second campus in Haiyan, Zhejiang province, which will be completed later this year. Covering 135,000 square meters, this new campus will be one of the largest production sites in the group’s history, focusing on China’s transition to a green, low-carbon economy. Fausing emphasized the importance of agility and adaptability in the competitive Chinese market, stating, “With growing competition from local companies, the market momentum is already different in China. Only companies with strong agility and adaptability will win.”
China is not just a market for Danfoss; it is a strategic hub for innovation and talent. Fausing underscored that Danfoss will continue to invest in innovation and talent development in China, as these efforts support its operations in the country and significantly contribute to its global competitiveness. “China, regarded by Danfoss as its second home market, is a must-have and not a nice-to-have market,” he said.
Bai Ming, a member of the Academic Degree Committee at the Chinese Academy of International Trade and Economic Cooperation in Beijing, highlighted that China’s innovation-driven strategies and consumption stimulus are gaining strong momentum. These developments are poised to enhance global economic stability and create new growth opportunities for multinational corporations. Bai noted that overseas investors are increasingly focusing on digital solutions, supply chain optimization, high-end manufacturing, customized innovation, and green businesses in the Chinese market.
With China removing all restrictions on foreign investment in the manufacturing sector and issuing an action plan to stabilize foreign investment this year, the country is opening up new sectors such as telecommunications, biotechnology, and foreign-owned hospitals. This strategic shift is set to create a more dynamic and sustainable construction landscape, where innovation and green technologies are at the core of development. As Danfoss and other industry leaders invest in China, the construction sector is poised for a transformative era, where sustainability and technological advancement go hand in hand. This shift is not just about building structures; it’s about constructing a future where economic growth and environmental stewardship are
