Over the past few years, Danfoss Tianjin Commercial Compressor Plant (” Danfoss Wuqing “) has achieved significant improvements in productivity, efficiency and product quality, while using less energy, operating costs and significantly reducing the environmental impact. In 2019, the plant was named by the World Economic Forum as a “beacon factory” leading smart manufacturing in the fourth Industrial Revolution.
At the Digital Empowerment Industrial Transformation Symposium at the 2024 China Development Forum, Kim Fausing, President and CEO of Danfoss Group, said that the fact that Danfoss Wuqing has proven the continuous accumulation of digital innovation results and Danfoss existing energy efficiency solutions, It can realize the benchmark of digital intelligence in manufacturing industry like Danfoss Wuqing. Founded in 1996, Danfoss Wuqing is also the beginning of Danfoss ‘” home “in the Chinese market.
Kim Fausing, President and CEO of Danfoss Group, spoke.
In his speech at the seminar, Fang Xingjian said that we are experiencing a grand industry transformation and upgrading. “When we talk about digitization, we’re not talking about a single thing or an individual, we’re actually talking about using digital technology to effectively and efficiently connect the various points of internal and external processes and make them intelligent.”
He also mentioned that he fully agrees that industrial digital upgrading, that is, the deep integration of digital technology and the real economy, is one of the important pillars of China’s national digital economy development strategy.
Fang Xingjian especially mentioned the massive data generated in the industrial digital upgrade and the energy consumption of the data center industry. “With the rapid development of industries such as 5G, cloud computing, e-commerce, smart devices and artificial intelligence, the demand and production of data have increased dramatically. Nearly 90% of the world’s data has been generated in the last two years.”
At the same time, digital infrastructure such as data centers will also usher in explosive growth. In China, for example, the entire year of 2022, the national data center power consumption reached 270 billion KWH, accounting for about 3% of the whole society’s electricity consumption. In 2021, the national data center power consumption will be 216.6 billion KWH, twice the cumulative power generation of 103.649 billion KWH of the Three Gorges power Station in the same period.
It can be said that the green development of data centers has been widely concerned. Fang Xingjian also said that “improving energy efficiency in the data center industry is a key area, especially for China as it strives to achieve the goal of ‘two-carbon’.”
Danfoss, Denmark’s largest industrial group with leading positions in cooling, heating, transmission and power systems, also aims to be its customers’ preferred business partner for decarbonisation.
“Danfoss has been working with partners around the world to improve the energy efficiency and sustainability of data centers around the world, including those owned by major technology companies such as Facebook.” Fang Xingjian said there is a similar practice in China, “using the opportunity of digital infrastructure construction to cooperate with local counterparts to provide green technologies and solutions such as efficient refrigeration, industry coupling and green electricity for banks, telecom companies and well-known companies in Internet technology.”
Danfoss has always emphasized that “the energy saved is the greenest energy”. Fang Xingjian further expanded, “All of our data centers have a lot of heat energy, we can recover this heat energy through heat recovery technology, and through the regional energy system access to the heat network, for our houses, space, hot water, etc., this is actually a very good business opportunity.” The same solution can also be applied to waste heat recovery in steel plants, supermarkets and other scenarios.”
It is worth mentioning that this is Fang Xingjian’s third trip to China in nearly 10 months. In May last year, Fang Xingjian came to China to attend the opening ceremony of Danfoss Global Refrigeration Research and development test center. The center is Danfoss ‘leading and largest scroll compressor R&D and testing center in the world, focusing on the development and testing of commercial compressor conversion technology, industry applications such as heat pumps, and environmentally friendly refrigerant alternatives.
“This demonstrates our determination to continue investing in innovation to strengthen our innovation capabilities in China and our confidence in the continued growth of our business in the country.” Fang Xingjian said that China is promoting a high level of opening-up and reiterated its commitment to improving the business environment, especially the Chinese government’s emphasis on intellectual property protection, which gives Danfoss firm confidence and continues to invest in China.
Another project worth noting is that in April this year, Danfoss is about to launch the company’s second park construction project in Zhejiang Haiyan Park, which is expected to be completed and put into use in early 2025. The campus is Danfoss ‘largest and largest manufacturing facility in China with the largest number of employees. According to the surging news, the Haiyan factory will gather Danfoss high, medium and low frequency converter products to supply the global market, including China.
