Thomas Koniordos, head of the Danfoss Power Electronics resource centre in China, said:
"This is a very encouraging development as PE China has accomplished significant growth in 2010. We believe this trend will continue and we need more operational capacity to accommodate it".
Doubled twice in 18 months
The expansion is the second in just eighteen months. The first expansion, which took place in mid 2009, more than doubled the facility space to meet the fast growing demand from the local market.
The extra space was soon occupied by increased sales and the manufacture of new products, and the facility fell short of space again because of strong economic rebounding in China.
Warehouse and repair moved back
To solve this problem, the company once again rented the previous factory building (which was closed after the first expansion) to cover the need for extra warehouse capacity and the repair department for Holip brand drives was moved to this building.
However, to meet future capacity needs, a new building is now being planned.
Bought neighbour land
The land beside the existing factory has been bought and this purchase will make it possible to almost double the office and production space again. The design has started and the land is under preparation. The plan is to have the building finished by the end of 2011.
This is a great step forward as the facility space will then be four times as large as it was only a year and a half ago.
Research and Development
The facility expansion is partly a preparation for the enlargement of Danfoss Power Electronics Research and Development team in China.
When the expansion is completed, Danfoss Power Electronics will recruit new research and development staff on a large scale to significantly enhance its development capabilities and to build up the test centre capabilities in Haiyan to become one of the three Global Research and Development centres of Danfoss Power Electronics.
Danfoss acquired the former Zhejiang Haili Electronic Technology Co. Ltd in November 2005.
The company was founded in 2001 and is located 100 km from Shanghai in Haiyan, China.
The Haiyan facility now carries both ISO 9001:2000 and ISO14001 certificates and is one of the biggest frequency converter manufacturers in China.