Danfoss has inaugurated its largest global production facility in Haiyan, China, marking a significant expansion of its footprint in the country. The new Haiyan Second Campus spans 126,000 square meters and more than doubles Danfoss' presence in the region. This investment supports China's green transition and aligns with the company's LEAP 2030 growth strategy.
The expanded campus integrates manufacturing for all three of Danfoss’ business segments and includes two Application Development Centers (ADCs) for its Power Solutions and Climate Solutions businesses. The facilities will produce a range of technologies, including drives, commercial compressors, quick disconnect connectors, hydraulic pumps, motors and valves, and heat exchangers—key components for decarbonizing buildings, transportation, and energy systems in China.
The inauguration ceremony was attended by Danish and Chinese officials, including Anders Siegumfeldt, Deputy Head of Mission at the Embassy of the Kingdom of Denmark; Chen Wei, Party Secretary of Jiaxing City; and Wang Suishe, Party Secretary of Haiyan County, along with Danfoss leadership and founding family members.
Kim Fausing, President and CEO of Danfoss, stated: “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 new facility is designed with energy efficiency at its core and will follow Danfoss' decarbonization model: Reduce, Reuse, and Re-source. In April 2024, Danfoss signed a Power Purchase Agreement with CGN New Energy Holding to supply 100% green electricity, expected to cut 40,000 tons of CO₂ emissions annually from January 2025—equivalent to 33% of the company’s emissions in China and 9% globally.
Arthur Xu, President of Danfoss China, commented: “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.”
Danfoss has operated in Haiyan since 2005 and currently runs 11 production sites and four innovation facilities in China, employing more than 5,000 people nationwide.