Danfoss to further tap green opportunities in China

Danish technology and engineering conglomerate Danfoss Group is doubling down on its commitment to the Chinese market, unveiling a series of major innovations and manufacturing investments in 2025 to tap into the country's accelerating green transition and industrial modernization.

After upgrading its application development center focused on energy-efficient drives technologies in Suzhou, Jiangsu province, in January, the Denmark-headquartered group started production at its Nanjing campus in Jiangsu in April to produce IGBT(insulated-gate bipolar transistor) semiconductor power modules, as well as electric and hybrid powertrain systems.

With 40,000 employees worldwide, Danfoss will put its second campus into operation in Haiyan, Zhejiang province, later this year. The new campus will be one of the biggest production sites in the company's history. It will be used to capture the growth potential unleashed by China's transition to a green economy.

"China is not only a critical market for us, but also a strategic innovation base," said Mika Kulju, president of Danfoss' power electronics and drives division. "We have maintained high levels of innovation investment to expand our portfolio of technologies, not only to support our operations in China, but also globally."

The Danish company sees strong growth potential across a variety of business areas in China, particularly in the data center, semiconductor, marine, energy storage and building retrofit markets. Its data center business surged 70 percent year-on-year, while its marine and offshore business grew by 29 percent in China in 2024.

Take the marine and offshore business, for example. The electrification retrofit of inland waterway vessels has been identified as one of the main priorities in China's action plan to promote green development in the shipbuilding industry, said Kulju.

By 2030, China aims to see its green shipbuilding technology reach an advanced international level and lead in the global green shipbuilding market, according to information released by the Ministry of Industry and Information Technology.

"As China continues to lead in the shipbuilding industry, the market demand for shipping electrification solutions will be huge, creating significant market potential for Danfoss," he added.

With this year marking the 50th anniversary of diplomatic relations between China and the European Union and the 75th anniversary of China-Denmark diplomatic ties, Kulju said that the green partnership between China and Denmark plays an important role in advancing global climate actions and accelerating the green transition of the economy.

He said there is strong potential for collaboration between the two countries, where both sides could leverage complementary strengths to drive innovation and achieve shared environmental goals.

According to the Green Joint Work Programme between the governments of China and Denmark for 2023-26, both countries will cooperate closely on climate change mitigation and adaptation as well as energy transition.

As China continues to pursue high-quality development, Kulju said Danfoss is seeing strong growth momentum in advanced manufacturing sectors such as data centers, semiconductors, green shipping and energy storage.

China will support multinational companies to participate in its new industrialization, with a focus on attracting global capital in high-tech fields, according to the government's 2025 Action Plan for Stabilizing Foreign Investment, which was issued in February.

Cai Qingfeng, a professor at the School of Economics at Xiamen University in Fujian province, said that as China advances consumption upgrading and technological innovation, the country will see growing demand for high-tech products and service solutions from multinational corporations to enhance industrial capabilities.

zhongnan@chinadaily.com.cn