Danfoss increases green business opportunities in China

Danish Danfoss Group’s plant in China will commence production after the opening of its global green laboratory last week, the company has stated.

With an investment of 100 million euros, the factory will manufacture IGBT (insulated-gate bipolar transistor power) modules. An IGBT power module functions as a switch. It can be used to turn electrical power on and off extremely fast and with high energy efficiency. This can help provide low electrical losses.

Danfoss said the laboratory will strongly support its businesses in e-mobility, energy and industrial applications in China.

“The technologies and solutions tested and proved in the laboratory will be widely used in air conditioning, heat pumps, data centers, cold chains and energy storage,” said Kim Fausing, president and CEO of Danfoss Group.

“This is expected to play a significant role in the global green transition. Especially in reducing carbon dioxide emissions,” he added.

Danfoss’ business in China has experienced a rapid growth in recent years. Its sales in China reached around 4 billion yuan in 2015, while in 2022, the number had more than doubled. One of the main drivers is China’s green investment pledge to reach its dual-carbon goals.

To secure more market share in China, Danfoss signed an agreement with the local government in Haiyan, Zhejiang province last week, to officially launch the construction of Danfoss’ second industrial campus in the city.

This project will be constructed by the local government. Danfoss will then rent and invest in the equipment with its own funds.

With 11 manufacturing bases in China, Danfoss currently has more than 5,500 employees in the country.

Source: chinadaily.com.cn

About Miabell Mallikka

Miabell Mallikka is a journalist working with ScandAsia at the headquarters in Bangkok.

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