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Rising demand for green technologies drives Danfoss to open its largest production facility in China

Tuesday, September 2, 2025

Danfoss, the Danish multinational engineering group, today inaugurated its largest global production facility in China. Spanning 126,000 sqm, Danfoss’ Haiyan Second Campus more than doubles the company’s presence in the region, underscoring its long-term commitment to supporting China’s green transition and high-quality development.

With the new campus in operation, Danfoss’ expanded presence in Haiyan now integrates manufacturing for all three of its business segments, and two Application Development Centers (ADCs) serving its Power Solutions and Climate Solutions businesses. These facilities are built to the same world-class standards as in Europe and the United States. They focus on developing and delivering advanced technologies, including drives, commercial compressors, quick disconnect connectors, hydraulic pumps, motors and valves, and heat exchangers, vital to decarbonizing China’s buildings, transportation, and energy sectors.

Anders Siegumfeldt, Deputy Head of Mission, Ambassador, Embassy of the Kingdom of Denmark; Chen Wei, Party Secretary of Jiaxing City; and Wang Suishe, Party Secretary of Haiyan County attended the ceremony together with Kim Fausing, President and CEO of Danfoss, and Arthur Xu, President of Danfoss China, as well as members of Danfoss’ founding family, Danfoss executives, and guests.

Kim Fausing

We continue to see great potential in the Chinese market, and the new campus demonstrates our commitment to strengthening our China-for-China set-up but also our confidence in China’s green future. The investment in this new campus is fully in line with our growth ambition, driven by our new LEAP 2030 strategy. Through state-of-the-art innovation and production facilities, we are contributing to China’s high-quality, low-carbon transition alongside our Chinese partners.

Kim Fausing, President and CEO, Danfoss

Anders Siegumfeldt, Deputy Head of Mission, Ambassador at the Embassy of Denmark in Beijing, says:” Danfoss’ strategic expansion in China is a testament to the shared ambitions of our two countries for a greener future. It is also a cornerstone of our bilateral efforts to turn climate goals into industrial competitiveness and shared prosperity.” 

In conclusion of his speech, Ambassador Siegumfeldt presented Danfoss with a hand-painted Royal Copenhagen Blue Fluted Mega plate, commemorating 75 years of diplomatic relations between Denmark and China and acknowledging the company’s contributions to the partnership.

Arthur Xu, President of Danfoss China, says: “We’ve been taking great pride in contributing to the strong ties between China and Denmark. The new campus is a strategic leap forward that enhances our ability to deliver advanced energy-efficient solutions, enabling our Chinese customers to decarbonize and grow at scale. As we celebrate 20 years in Haiyan and 30 years in China, we recognize that our success here has been made possible thanks to the strong partnership and support from the Jiaxing and Haiyan governments.”

Since establishing operations in Haiyan in 2005, the Danfoss Haiyan Campus has grown to be one of the company’s most important innovation and manufacturing facilities globally, contributing to the region’s development.  

Wang Suishe, Party Secretary of Haiyan County says: “The new campus is another milestone of our 20-year cherished partnership with Danfoss. Haiyan is ready to fully support Danfoss's continued development here and we’d like to work together for a new chapter of cooperation and shared future.” 

The new campus is a perfect showcase for Danfoss' proven decarbonization solutions, providing industries with a cost-effective roadmap with solutions readily available. 

In line with Danfoss’ commitment to decarbonize global operations by 2030, the campus has been constructed with energy efficiency in focus and will operate with its three-step decarbonization approach: Reduce, Reuse, and Re-source. In April 2024, Danfoss closed a Power Purchase Agreement with CGN New Energy Holding to source 100% green electricity, reducing our carbon emissions by 40,000 tons every year from January 2025, equivalent to 33% of our emissions in China and 9% globally.  

Danfoss currently has 11 production sites and 4 innovation facilities in China and more than 5,000 employees in the country.

For further information, please contact:
Ken, Xiao Qiang, Public Relations Director, Danfoss China 
Phone: +86-10-8535 2307
Email: xiaoqiang@danfoss.com